If you are researching trusts in New York, you probably do not want a law-school lecture — you want clear answers and a sense of what to do next. This FAQ is built as a working checklist. Each answer ends with a practical step, so by the time you finish reading you will know exactly where you stand and what to tackle first.
Morgan Legal Group serves clients statewide — across New York City, Long Island, Westchester, the Hudson Valley, and Upstate New York. Attorney Russel Morgan, Esq., and our team plan trusts under the New York Estates, Powers and Trusts Law (EPTL) Article 7. Below are the questions we hear most, with the New York rules that actually govern the answers.
Quick-Reference Fact List
| Topic | New York Rule (2026) |
|---|---|
| Governing law | EPTL Article 7 |
| Revocable trust | Grantor keeps control; avoids probate; no estate-tax savings |
| Irrevocable trust | Estate-tax reduction, asset protection, Medicaid (5-year look-back) |
| Special needs trust | Preserves Medicaid/SSI; EPTL 7-1.12 |
| Trustee standard | Prudent-investor rule, EPTL Article 11-A |
| Estate-tax exclusion | $7,350,000 basic exclusion |
| Estate-tax “cliff” | 105% = $7,717,500 (lose the entire exemption above it) |
| Trust vs. will | Trust = private, no probate; will = public, probated in Surrogate’s Court |
1. What is a trust, and how is it different from a will?
A trust is a legal arrangement where you (the grantor) transfer assets to a trustee to hold and manage for your beneficiaries under terms you set. The key practical difference from a will: a properly funded trust avoids probate and stays private, while a will is a public document that must be filed and proven in the Surrogate’s Court. Both are governed by New York law, but they do very different jobs.
Next step: Decide whether your priority is probate-avoidance and privacy (trust) or simple distribution (will). Many clients need both. See Trust vs. Will.
2. Should I choose a revocable or an irrevocable trust?
This is the most important fork in the road.
- A revocable living trust keeps you in full control — you can amend or revoke it any time. It avoids probate, protects your privacy, and provides for management if you become incapacitated. It does not reduce estate tax, because the assets remain part of your taxable estate.
- An irrevocable trust generally cannot be changed once created, but it can remove assets from your taxable estate, protect them from creditors, and support Medicaid planning (subject to the 5-year look-back).
Next step: Ask yourself whether control or protection matters more right now. Read Revocable Living Trust and Irrevocable Trust, then book a consultation to match the tool to your goal.
3. Will a trust save me New York estate tax?
Only an irrevocable trust can. A revocable trust does not, because you still own the assets for tax purposes. This matters because New York has a sharp “cliff.” In 2026 the basic exclusion is $7,350,000. If your taxable estate exceeds 105% of that amount — $7,717,500 — you lose the entire exemption, not just the excess, and the whole estate becomes taxable.
Next step: Estimate your total estate (home, retirement, life insurance, business). If you are near or over $7.35M, irrevocable planning could save substantial tax. Bring those numbers to your consultation.
4. What is a special needs trust, and who needs one?
A Supplemental (Special) Needs Trust (SNT), authorized under EPTL 7-1.12, lets you provide for a disabled loved one without disqualifying them from means-tested benefits like Medicaid and SSI. Assets in the SNT supplement — rather than replace — government benefits, paying for things those programs do not cover.
Next step: If you have a child, sibling, or relative with a disability, never leave them money directly. Plan an SNT first. See Special Needs Trust.
5. What does a trustee actually have to do?
A trustee is a fiduciary, which means the law holds them to high standards. Under New York’s prudent-investor rule (EPTL Article 11-A), the trustee must invest sensibly. They also owe a duty of loyalty (acting solely for the beneficiaries) and a duty to account (keeping records and reporting to beneficiaries).
Next step: Choose a trustee who is organized, trustworthy, and willing to serve — and name a successor. Learn more on Trust Administration.
6. How does the Medicaid 5-year look-back affect my trust?
When you transfer assets into an irrevocable trust for Medicaid-planning purposes, New York applies a 5-year look-back for nursing-home (institutional) Medicaid. Transfers made within five years of applying can trigger a penalty period.
Next step: Plan early. The most common mistake is waiting until a health crisis. If long-term care is a concern, start the clock now by speaking with us about an Irrevocable Trust.
7. Do I still need a will if I have a trust?
Yes. Even with a fully funded trust, you should have a “pour-over” will as a safety net to catch any assets you did not transfer into the trust during your lifetime. A will is also where you name guardians for minor children. The two documents work together.
Next step: Review whether your trust is actually funded — an unfunded trust does not avoid probate. Confirm titles and beneficiary designations match your plan.
8. How much are trustee commissions in New York?
New York sets statutory commission schedules for fiduciaries under the SCPA and EPTL — there are established formulas, and a trust document can also specify how a trustee is compensated. We will not quote a flat figure here, because the amount depends on the trust’s value and structure, but the schedules are statutory, not arbitrary.
Next step: Ask us to walk through the applicable commission schedule for your situation so there are no surprises later. Start with Trusts Overview.
9. What are the first steps to setting up a trust?
Here is the practical checklist most New Yorkers follow:
- Inventory your assets and estimate the total value (watch the $7.35M cliff).
- Clarify goals — probate avoidance, tax reduction, asset protection, or special-needs care.
- Choose the trust type — revocable vs. irrevocable.
- Select trustees and beneficiaries, including successors.
- Sign the documents with proper New York formalities.
- Fund the trust — retitle assets and update beneficiary designations.
Next step: Bring your asset list and your top goal to a consultation. Schedule a 30-minute call with Russel Morgan, Esq.
10. Where can I verify these New York rules myself?
We encourage clients to read the source. You can review EPTL provisions on the New York State Senate and Justia websites, and confirm current estate-tax figures at the New York State Department of Taxation and Finance.
Next step: Read the statutes, then let us translate them into a plan that fits your family. Book your consultation.
This page is general information about New York trust law, not legal advice. For guidance on your specific situation, consult an attorney. Morgan Legal Group serves clients throughout New York State.
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