New to trusts? You are not alone — and you do not need to learn legal jargon to make a smart decision. This FAQ covers the essential basics that first-time planners across New York ask most, in plain language. Whether you live in New York City, on Long Island, in Westchester, the Hudson Valley, or Upstate, the same New York law applies, and the same fundamentals will help you get started with confidence.
New York trusts are governed by the Estates, Powers and Trusts Law (EPTL), Article 7. Below, we walk through the core ideas one question at a time. When you are ready to talk it through with an attorney, you can schedule a consultation with Russel Morgan, Esq..
Start Here: The Two-Minute Overview
| The Essential | What It Means |
|---|---|
| What a trust is | A legal arrangement where a trustee holds assets for beneficiaries under your written instructions. |
| Main appeal | Avoids probate, keeps your affairs private, and can manage assets if you become incapacitated. |
| Governing law | New York EPTL Article 7. |
| Two big families | Revocable (you keep control) and irrevocable (greater protection, less control). |
| 2026 NY estate-tax exclusion | $7,350,000, with a cliff at 105% = $7,717,500. |
Want the full picture? See our Trusts Overview for the essentials in one place.
Frequently Asked Questions
1. What is a trust, in plain English?
A trust is a written arrangement in which a person (the grantor) transfers assets to a trustee, who manages them for the benefit of named beneficiaries. Think of it as a set of private instructions attached to your property. New York trusts are created and governed under EPTL Article 7. The key benefit for most first-time planners is that assets held in a properly funded trust can pass to loved ones without probate.
2. What is the difference between a revocable and an irrevocable trust?
This is the most important essential to understand.
- A revocable living trust lets you keep full control. You can amend it or revoke it entirely during your lifetime. Its primary benefits are avoiding probate, privacy, and incapacity management. Important: it does not save estate tax, because the assets remain part of your taxable estate.
- An irrevocable trust generally cannot be amended once created. In exchange for giving up control, it can offer estate-tax reduction, asset protection, and Medicaid planning benefits.
Learn more on our Revocable Living Trust and Irrevocable Trust pages.
3. As a first-timer, which trust should I start with?
Many people new to estate planning begin with a revocable living trust because it keeps them in control while still avoiding probate and providing privacy. If your goals include asset protection, Medicaid eligibility, or reducing estate tax, an irrevocable trust may be the better fit — but it involves giving up control, so it deserves careful, personalized advice. There is no single right answer; the essential step is matching the tool to your goals. A short consultation is the easiest way to figure that out.
4. Does a trust really avoid probate — and why does that matter?
Yes. A core difference between a trust and a will is that assets held in a funded trust pass directly to your beneficiaries without going through New York’s Surrogate’s Court. A will, by contrast, is a public document that must be probated. Avoiding probate generally means more privacy and a more streamlined transfer for your family. See our Trust vs. Will page for a side-by-side comparison.
5. Will a trust lower my New York estate taxes?
It depends on the type. A revocable trust does not reduce estate tax, because those assets stay in your taxable estate. An irrevocable trust can be designed to reduce estate-tax exposure.
For 2026, the New York basic exclusion amount is $7,350,000. New York also has a so-called “cliff.” If your taxable estate exceeds 105% of the exclusion — $7,717,500 — you lose the ENTIRE exemption, and the whole estate becomes taxable. Planning near that threshold matters a great deal, which is why high-net-worth families review their numbers regularly.
6. What is a Supplemental (Special) Needs Trust?
A Supplemental Needs Trust (SNT), also called a Special Needs Trust, is designed to provide for a disabled beneficiary without disqualifying them from means-tested benefits like Medicaid or SSI. It is specifically authorized under EPTL 7-1.12. For families caring for a loved one with a disability, this is one of the most essential and protective tools available. Read more on our Special Needs Trust page.
7. What does a trustee actually have to do?
A trustee is a fiduciary, which means they are held to high legal standards. In New York, a trustee must follow the prudent-investor standard under EPTL Article 11-A, observe the duty of loyalty (acting in the beneficiaries’ best interests, not their own), and the duty to account to beneficiaries. Choosing the right trustee — and understanding these duties — is an essential part of setting up any trust. Our Trust Administration page explains how this works in practice.
8. How are trustees paid in New York?
New York law provides statutory commission schedules for fiduciaries under the SCPA and EPTL. Rather than a flat fee, commissions are generally calculated according to these schedules. Because the specifics depend on the trust and the assets involved, the essential takeaway is simply this: trustee compensation in New York is governed by established statutory schedules, and your attorney can walk you through how they apply to your situation.
9. What is the Medicaid “5-year look-back” I keep hearing about?
When an irrevocable trust is used for Medicaid planning, transfers into the trust are subject to a 5-year look-back period. In simple terms, assets generally need to be placed in the trust well before you apply for long-term-care Medicaid for those transfers not to count against eligibility. This is why timing is essential — irrevocable Medicaid planning works best when started early.
10. How do I get started without feeling overwhelmed?
Start small and ask questions. You do not need every answer before your first conversation. A good first step is a brief, plain-language consultation to review your goals, your family situation, and which essentials apply to you. You can book a 30-minute consultation with Russel Morgan, Esq. and bring whatever questions you have — no jargon required.
A Reassuring Word for First-Time Planners
Trust planning can feel intimidating, but the essentials are straightforward: decide who should benefit, choose a trustee you trust, pick the right type of trust for your goals, and put it in writing under New York law. Morgan Legal Group and attorney Russel Morgan, Esq. help individuals and families across New York State — from the five boroughs to the Hudson Valley and Upstate — take that first step with clarity and confidence.
This page is general information about New York law and not legal advice. For guidance on your specific situation, please schedule a consultation.
Helpful New York Resources
- New York EPTL (NY Senate): nysenate.gov
- New York estate tax (NY Dept. of Taxation): tax.ny.gov
- New York EPTL on Justia: law.justia.com
Further reading from Morgan Legal Group: how an irrevocable trust works.