If you are new to estate planning, the vocabulary alone can feel overwhelming — revocable, irrevocable, fiduciary, look-back, Surrogate’s Court. This FAQ is a plain-English starting point for individuals and families across New York State, whether you live in New York City, on Long Island, in Westchester, the Hudson Valley, or Upstate. Below, Morgan Legal Group answers the questions we hear most often, with accurate references to New York law so you know where these rules actually come from.
Think of this page as an overview, not a substitute for advice tailored to your own family and assets. When you are ready, attorney Russel Morgan, Esq. can walk you through the specifics — you can book a 30-minute consultation here.
The Basics
What is a trust, and how is it different from a will?
A trust is a legal arrangement in which a grantor (you) transfers assets to a trustee, who manages them for beneficiaries under the terms you set. New York trusts are governed by the Estates, Powers and Trusts Law (EPTL) Article 7.
The practical difference from a will comes down to two words: probate and privacy.
| Will | Trust | |
|---|---|---|
| Goes through court? | Yes — probated in Surrogate’s Court | No — administered privately |
| Public or private? | Public record | Private |
| Takes effect | At death | Often during life (and after) |
| Helps with incapacity? | No | Yes (a funded living trust can) |
A will must be filed and proven in the Surrogate’s Court before assets pass to your heirs; a properly funded trust generally avoids that step. Most thorough plans use both documents together. See our Trust vs. Will page for a deeper comparison, or start with our Trusts Overview.
What is a revocable living trust?
A revocable living trust is one you can change or cancel at any time while you are alive and competent. You typically serve as your own trustee, so you keep full control of your assets. Its main benefits are three:
- Avoiding probate — assets in the trust pass without Surrogate’s Court.
- Privacy — the terms stay out of the public record.
- Incapacity management — a successor trustee can step in without a court guardianship if you become unable to manage your affairs.
One important caveat: a revocable trust does not save estate tax. Because you retain control, the assets remain part of your taxable estate. Learn more on our Revocable Living Trust page.
What is an irrevocable trust, and why would I use one?
An irrevocable trust generally cannot be amended or revoked once it is created. In exchange for giving up that control, you gain planning advantages a revocable trust cannot offer:
- Estate-tax reduction — assets can be moved out of your taxable estate.
- Asset protection — shielding property from certain future creditors.
- Medicaid planning — positioning assets so they are not counted for long-term-care eligibility.
The trade-off is real, which is why these trusts deserve careful counsel. Visit our Irrevocable Trust page to understand the commitment involved.
What is the Medicaid 5-year look-back?
When you apply for Medicaid long-term care in New York, the program reviews transfers you made during the five years (60 months) before your application — the “look-back” period. Assets transferred to an irrevocable trust during that window can trigger a penalty period of ineligibility. This is why Medicaid-focused planning works best when started early, well before care is needed.
Special Situations
How can I provide for a family member with disabilities?
A Supplemental (Special) Needs Trust (SNT), authorized under EPTL 7-1.12, lets you set aside funds for a loved one with disabilities without disqualifying them from means-tested public benefits such as Medicaid and SSI. The trustee can pay for needs those programs don’t cover — therapies, education, travel, quality-of-life items — while the beneficiary keeps their eligibility. Our Special Needs Trust page explains how these trusts are structured.
Who can serve as my trustee, and what are their duties?
A trustee can be an individual you trust, a professional, or an institution. Whoever serves takes on serious legal obligations under New York law:
- Prudent-investor standard — invest trust assets with care and skill, under the Prudent Investor Act, EPTL Article 11-A.
- Duty of loyalty — act solely in the beneficiaries’ interest, never for personal gain.
- Duty to account — keep records and report to beneficiaries.
These are fiduciary duties, meaning the trustee is held to one of the highest standards the law recognizes. Our Trust Administration page covers what trustees actually do day to day.
Do trustees get paid?
Yes. New York law provides commission schedules for fiduciaries under the Surrogate’s Court Procedure Act (SCPA) and the EPTL. Rather than quoting a figure here, we encourage you to review the applicable schedule for your situation, because commissions vary by the trust’s value and the trustee’s role. The key point: trustee compensation is set by statute, not invented case by case.
New York Estate Tax in 2026
Will my estate owe New York estate tax?
New York imposes its own estate tax, separate from the federal one. For 2026, the basic exclusion amount is $7,350,000. Estates valued at or below that amount generally owe no New York estate tax.
What is the New York estate-tax “cliff”?
This is the rule that surprises people most. New York’s exemption is not a simple deduction — it phases out, and there is a hard edge called the cliff.
| 2026 New York Estate Tax | Amount |
|---|---|
| Basic exclusion amount | $7,350,000 |
| Cliff threshold (105% of exclusion) | $7,717,500 |
| Effect above the cliff | Entire exemption is lost |
If your taxable estate exceeds $7,717,500 — that is, 105% of the exclusion — you lose the entire exemption, and the tax applies to the whole estate from the first dollar, not just the amount over the line. This makes proactive planning especially valuable for estates approaching that threshold.
Can a trust help reduce New York estate tax?
It can — but only the right kind of trust. A revocable living trust will not reduce estate tax, because those assets stay in your taxable estate. Irrevocable trusts, by contrast, can move assets out of the taxable estate when structured correctly. Because the cliff is so unforgiving, families near the threshold often benefit from this kind of planning. Attorney Russel Morgan, Esq. can review your numbers and explain your options.
Ready to Get Started?
Every family’s plan looks a little different. If you would like a clear, personalized roadmap — built around New York law and your own goals — schedule a 30-minute consultation with Russel Morgan, Esq..
This page is general information about New York law, not legal advice. For authoritative statutory text, see the New York State Senate and the New York State Department of Taxation and Finance.
Further reading from Morgan Legal Group: how an irrevocable trust works.