If you have heard the word “trust” and thought it was only for the very wealthy, you are not alone — and you are not entirely right. Trusts are legal tools available to ordinary New Yorkers who want to keep assets out of court, protect a loved one with a disability, or reduce a taxable estate. This page gives you the plain-English foundation before you dig into the details.
The Three Trusts Most New Yorkers Use
All New York trusts are governed by the NY Estates, Powers and Trusts Law (EPTL) Article 7.
| Trust Type | Can It Be Changed? | Main Benefit | Key Limitation |
|---|---|---|---|
| Revocable Living Trust | Yes — anytime | Avoids probate; private; manages assets if you become incapacitated | Does not reduce estate tax |
| Irrevocable Trust | Generally no | Estate-tax reduction; asset protection; Medicaid planning | Loses grantor control; 5-year Medicaid look-back |
| Supplemental Needs Trust (SNT) | Depends on type | Preserves Medicaid & SSI for a disabled beneficiary | Must comply with EPTL § 7-1.12 |
Why Avoid Probate?
A will must be filed and approved in the Surrogate’s Court — a public process that can take months. A trust transfers assets privately, without court involvement. For most families, that difference in speed and privacy alone makes a trust worth considering.
The NY Estate Tax Cliff — Know It Before You Plan
New York’s 2026 basic exclusion is $7,350,000. Estates exceeding 105% of that amount ($7,717,500) hit a “cliff” and lose the entire exemption — not just the excess. An irrevocable trust structured correctly can keep an estate below that line.
The Trustee’s Legal Duties
Whoever you name as trustee must follow:
- The prudent-investor standard (EPTL Article 11-A)
- A strict duty of loyalty to beneficiaries
- An ongoing duty to account to all trust beneficiaries
These duties apply whether the trustee is a family member or a professional. Learn more about what this means day-to-day on our trust administration page.
Trust vs. Will: The Short Version
Both documents are essential — they serve different purposes. See our trusts overview and trust vs. will pages for a full comparison.
Ready to Talk Through Your Situation?
Russel Morgan, Esq. works with families across New York City, Long Island, Westchester, the Hudson Valley, and Upstate New York. Schedule a focused 30-minute conversation to find out which trust — if any — fits your goals.
Book an Appointment with Russel Morgan, Esq.
Further reading from Morgan Legal Group: how an irrevocable trust works.