New York Trusts in 2026: Your Step-by-Step Planning Checklist

Most people don’t fail at estate planning because they choose the wrong trust. They fail because they never take the next step — the trust gets discussed, maybe even drafted, and then it sits unfunded in a drawer. This page is built differently. Instead of another long lecture on trust theory, it walks you through the concrete actions a New York family takes, in order, to put a working trust in place.

Morgan Legal Group, led by attorney Russel Morgan, Esq., builds and administers trusts for clients across all of New York State — from New York City and Long Island to Westchester, the Hudson Valley, and Upstate. New York trusts are governed primarily by the Estates, Powers and Trusts Law (EPTL) Article 7. Use the checklist below to find your next step.

The 6-Step New York Trust Checklist

Step	Action	Why it matters
1	Clarify your goal	A revocable trust, irrevocable trust, and special needs trust solve completely different problems.
2	Choose the trust type	The wrong type can forfeit tax savings or Medicaid eligibility.
3	Draft under NY law	The document must comply with EPTL Article 7 and your specific intent.
4	Name and brief your trustee	Trustees owe real fiduciary duties under New York law.
5	Fund the trust	An unfunded trust avoids nothing. This is the step most people skip.
6	Review every 2-3 years	Tax thresholds, family, and assets change.

Step 1 — Get clear on what you actually want

Before any document is drafted, name your primary goal. Avoid the public, often slow Surrogate’s Court probate process? Protect assets and qualify for Medicaid? Provide for a child with disabilities without destroying their benefits? Each goal points to a different tool. See our Trusts Overview to compare options side by side.

Step 2 — Match your goal to the right trust type

New York recognizes several trust structures. The three most families use:

• Revocable living trust — You stay in full control and can amend or revoke it anytime while you’re alive and competent. Its core benefits are avoiding probate, keeping your affairs private, and providing seamless management if you become incapacitated. Important: a revocable trust does not save estate tax — the assets remain part of your taxable estate. Learn more on our Revocable Living Trust page.
• Irrevocable trust — Generally cannot be amended once signed, and that rigidity is the point. By giving up control, you can reduce your taxable estate, shield assets from creditors, and plan for Medicaid. Medicaid planning here is subject to New York’s five-year look-back, so timing is critical — see our Irrevocable Trust page.
• Supplemental (Special) Needs Trust — Authorized by EPTL 7-1.12, an SNT lets a disabled beneficiary receive an inheritance while preserving means-tested benefits like Medicaid and SSI. Details on our Special Needs Trust page.

Step 3 — Draft the trust under New York law

A trust is only as strong as its drafting. The instrument must satisfy EPTL Article 7’s formal requirements and capture your intent precisely — who the trustee is, who benefits, when and how distributions occur, and what happens if circumstances change. Generic online forms routinely miss New York-specific provisions, which surfaces years later when the trust is challenged or fails to do its job.

Step 4 — Name a trustee who understands the duty

Your trustee is the person (or institution) who manages the trust. Under New York law a trustee is a fiduciary held to real standards:

• Prudent-investor standard (EPTL Article 11-A) — invest with care, skill, and diversification.
• Duty of loyalty — act solely in the beneficiaries’ interests, never the trustee’s own.
• Duty to account — keep records and report to beneficiaries.

Trustees may be entitled to commissions under the schedules set out in the SCPA and EPTL. Brief your trustee before they’re ever called to serve. Our Trust Administration page explains what the role really involves.

Step 5 — Fund the trust (do not skip this)

This is the step that separates a trust that works from a stack of paper that doesn’t. A trust controls only the assets actually titled in its name. Funding means retitling real estate, bank and brokerage accounts, and other property into the trust, and updating beneficiary designations where appropriate. An unfunded revocable trust will not keep your estate out of probate — because the assets it was supposed to hold were never transferred into it.

Step 6 — Review on a schedule

Estate planning is not “set it and forget it.” Revisit your trust every two to three years and after any major life event — marriage, divorce, a new child, a move, or a significant change in assets. Tax thresholds shift, too, which leads to the next point.

New York Estate Tax in 2026 — and the “Cliff”

Even families who don’t expect an estate-tax problem should know the 2026 numbers, because New York’s system has a trap built in:

2026 New York Estate Tax	Amount
Basic exclusion amount	$7,350,000
The “cliff” (105% of exclusion)	$7,717,500

Here’s why this matters. If your taxable estate exceeds the cliff of $7,717,500, you lose the entire exemption — not just the amount over the line — and the whole estate becomes taxable. Estates that land in this zone often benefit from irrevocable trust planning to bring the taxable estate back under the threshold. You can verify current figures with the New York Department of Taxation and Finance.

Trust vs. Will: What’s the Difference?

A will and a trust are not interchangeable. A will is a public document that must be filed and probated in the Surrogate’s Court after death. A trust generally avoids probate entirely and keeps the terms of your plan private. Many New Yorkers use both — a trust to hold and pass major assets, and a “pour-over” will as a backstop. Compare them on our Trust vs. Will page.

Frequently Asked Questions

Does a revocable living trust lower my New York estate tax?

No. Because you keep the power to amend or revoke it, the assets stay in your taxable estate. A revocable trust’s value is avoiding probate, privacy, and incapacity protection — not tax savings. Estate-tax reduction generally requires an irrevocable trust.

What is the five-year look-back?

For Medicaid planning, New York reviews asset transfers made within five years before an application for certain long-term care benefits. Transfers into an irrevocable trust during that window can trigger a penalty period, which is why timing and early planning are essential.

Can I set up a trust for a disabled family member without ending their benefits?

Yes. A Supplemental (Special) Needs Trust under EPTL 7-1.12 is designed exactly for this — it provides for a disabled beneficiary while preserving eligibility for means-tested programs like Medicaid and SSI.

Do I still need a will if I have a trust?

Usually, yes. A “pour-over” will catches any assets you never transferred into the trust and directs them in. It also lets you name guardians for minor children — something a trust alone cannot do.

What does a trustee actually have to do?

A New York trustee must invest prudently under the prudent-investor standard (EPTL Article 11-A), act with undivided loyalty, and account to the beneficiaries. It’s a serious fiduciary role, which is why choosing and preparing the right trustee is a checklist step of its own.

Take the Next Step

The hardest part of trust planning is starting. If you know your goal but aren’t sure which trust fits — or you have a trust that was never properly funded — that’s exactly where we help. Russel Morgan, Esq., and the team at Morgan Legal Group serve clients throughout New York State.

Schedule your consultation with Russel Morgan, Esq. →