You can protect your assets with a trust in New York by transferring ownership of your property into a legal arrangement — a trust — that is managed by a trustee for the benefit of the people you choose. Depending on the type of trust you create, this strategy can help you avoid probate, keep your affairs private, plan for incapacity, reduce estate taxes, shield assets for long-term care (Medicaid) planning, and preserve government benefits for a loved one with disabilities. In New York, trusts are governed by the Estates, Powers and Trusts Law (EPTL) Article 7, and the right trust for you depends entirely on your goals. This plain-English guide walks you through the main options so you can understand what a trust can — and cannot — do.
If you are new to estate planning, the most important idea to grasp is this: a trust is not a single product. It is a flexible tool that comes in different forms, each built for a different purpose.
What Is a Trust, in Plain English?
A trust involves three roles:
- Grantor (also called the settlor or trustor) — the person who creates the trust and funds it with assets.
- Trustee — the person or institution who manages the trust assets according to the trust’s instructions.
- Beneficiary — the person or people who receive the benefit of the trust assets.
When you “fund” a trust, you re-title your property — bank accounts, real estate, investments — so the trust legally owns it. Because the trust (not you, individually) owns the asset, those assets can pass to your beneficiaries outside of the probate court process when you die. To understand how the different structures compare at a glance, see our Trusts Overview.
The Main Types of Trusts in New York
Revocable Living Trust
A revocable living trust is the most common starting point for everyday New York families. As the grantor, you keep full control: you can amend it, add or remove assets, or revoke it entirely at any time while you are alive and competent.
The primary benefits are:
- Avoiding probate — assets in the trust pass directly to your beneficiaries without a court proceeding.
- Privacy — unlike a will, a trust is not filed with the court, so its terms stay private.
- Incapacity management — if you become unable to manage your affairs, your successor trustee steps in without the need for a court guardianship.
Important limitation: 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.
Irrevocable Trust
An irrevocable trust generally cannot be amended or revoked once it is established. In exchange for giving up that control, you gain powerful planning benefits:
- Estate-tax reduction — assets are removed from your taxable estate.
- Asset protection — properly structured, the assets may be shielded from certain creditors.
- Medicaid planning — used to qualify for long-term care benefits, subject to New York’s five-year look-back period.
Because the trade-offs are significant, irrevocable trusts require careful drafting. Our Irrevocable Trust page explains the planning in more depth.
Supplemental (Special) Needs Trust
A supplemental needs trust (SNT), authorized under EPTL § 7-1.12, allows you to set aside assets for a disabled beneficiary without disqualifying them from means-tested government benefits such as Medicaid and SSI. The trust pays for extras that improve quality of life while preserving eligibility for essential benefits.
| Trust Type | Can You Change It? | Avoids Probate? | Saves Estate Tax? | Common Goal |
|---|---|---|---|---|
| Revocable Living Trust | Yes | Yes | No | Probate avoidance, privacy, incapacity |
| Irrevocable Trust | Generally no | Yes | Yes | Tax reduction, asset protection, Medicaid |
| Supplemental Needs Trust | Depends on structure | Yes | Varies | Preserve Medicaid/SSI for a disabled loved one |
Trust vs. Will: Why Many New Yorkers Choose a Trust
A common question is whether you even need a trust if you already have a will. The key difference:
- A will must be filed and probated in the Surrogate’s Court, which makes it a public record and adds time and cost.
- A trust avoids probate and keeps your affairs private.
For many families, a trust-centered plan means heirs receive assets faster and with less court involvement. See our Trust vs. Will comparison for a fuller breakdown. Keep in mind that even with a trust, most plans still include a “pour-over” will as a backstop.
What Does a Trustee Actually Do?
Choosing a trustee is one of the most important decisions you will make. Under New York law, a trustee is a fiduciary — held to high legal standards, including:
- The prudent-investor standard (EPTL Article 11-A), requiring careful, diversified investment of trust assets.
- The duty of loyalty, requiring the trustee to act solely in the beneficiaries’ interest.
- The duty to account to beneficiaries, providing transparency about how assets are managed.
Trustees in New York may be entitled to statutory commissions under the schedules set out in the EPTL and the Surrogate’s Court Procedure Act (SCPA). If you would rather not burden a family member, professional trustee services are available — see our Trust Administration page.
A Word on New York Estate Tax (2026)
New York imposes its own estate tax, separate from the federal one. For 2026, the basic exclusion amount is $7,350,000. New York also has a notorious “cliff”: if your estate exceeds 105% of the exclusion — $7,717,500 — you lose the entire exemption, not just the amount over the threshold. Estates approaching this range should plan proactively, often using irrevocable trusts and lifetime gifting strategies.
Frequently Asked Questions
Does a revocable living trust protect my assets from creditors or estate tax?
No. Because you keep control of a revocable trust, the assets remain part of your taxable estate and are generally still reachable. For tax reduction and asset protection, an irrevocable trust is the appropriate tool.
What is the Medicaid five-year look-back?
When you apply for Medicaid long-term care, New York reviews asset transfers made in the prior five years. Transfers into an irrevocable trust must generally be completed at least five years before you need benefits to avoid a penalty period.
Will a trust avoid probate in New York?
Yes. Assets properly titled in a trust pass to beneficiaries outside the Surrogate’s Court, which keeps the process private and typically faster than probating a will.
Can I set up a trust for a child with special needs without losing their benefits?
Yes. A supplemental needs trust under EPTL § 7-1.12 lets you provide for a disabled beneficiary while preserving Medicaid and SSI eligibility.
Protect What You’ve Built — Talk With Morgan Legal Group
Every family’s situation is different, and the wrong trust can do as much harm as no plan at all. Russel Morgan, Esq. and the team at Morgan Legal Group help New Yorkers across the state choose and build the right trust for their goals — whether that’s avoiding probate, planning for long-term care, or protecting a loved one with special needs.
Schedule your confidential 30-minute consultation with Russel Morgan, Esq. and take the first step toward protecting your assets.
Further reading from Morgan Legal Group: how an irrevocable trust works.