If you have never set up a trust before, the word itself can feel intimidating — like something reserved for the very wealthy or the very complicated. It is not. A trust is simply a legal arrangement that lets you decide, in advance and on your own terms, how your property is managed and passed on. For families across New York — from Manhattan and Brooklyn to Long Island, Westchester, the Hudson Valley, and Upstate communities — a well-built trust is one of the clearest, most reassuring tools in estate planning.
This page is meant to give you the basics, plainly and without jargon. At Morgan Legal Group, attorney Russel Morgan, Esq., and our team help first-time planners understand their options before any decisions are made. Below, you will find what a trust is, the main types used in New York, how trusts compare to wills, and the 2026 estate-tax numbers you should know.
What Is a Trust, in Plain English?
Think of a trust as a container you create to hold assets — a home, savings, investments, or a life-insurance policy. You decide who controls the container (the trustee), who benefits from it (the beneficiaries), and what rules govern it. Once you understand those three roles, most of the mystery falls away.
Every trust in New York involves three parties:
- Grantor (also called the settlor or creator) — the person who sets up the trust and transfers assets into it.
- Trustee — the person or institution who manages the trust assets and follows your instructions.
- Beneficiary — the person or people who receive the benefit of the assets.
Trusts in New York are governed primarily by the Estates, Powers and Trusts Law (EPTL), Article 7. That body of law sets the framework for how trusts are created, managed, and enforced statewide — the same rules apply whether you live in New York City or a small town near the Canadian border.
The Main Types of Trust New Yorkers Use
Most first-time clients are choosing among a handful of trust types. Here is an essential overview of the ones we discuss most often.
Revocable Living Trust
A revocable living trust is the most common starting point. “Revocable” means you keep full control: you can amend it, add or remove assets, change beneficiaries, or revoke it entirely at any time while you are alive and competent.
The primary benefits are:
- Avoiding probate — assets in the trust pass to your beneficiaries without going through the Surrogate’s Court.
- Privacy — unlike a will, a trust is not filed in a public court record.
- Incapacity management — if you become unable to manage your affairs, your named successor trustee steps in seamlessly, without a court guardianship proceeding.
One honest point of reassurance and clarity: a revocable living trust does not save estate tax. Because you retain control, the assets remain part of your taxable estate. Its value is in control, privacy, and a smoother transition — not tax savings. Learn more on our revocable living trust page.
Irrevocable Trust
An irrevocable trust generally cannot be amended or revoked once it is established. That permanence is exactly what makes it powerful. Because you give up control of the assets, they can be removed from your taxable estate and shielded in ways a revocable trust cannot match.
Irrevocable trusts are used for three main goals:
- Estate-tax reduction — moving assets out of your taxable estate.
- Asset protection — placing assets beyond the reach of future creditors.
- Medicaid planning — positioning assets so they do not count against eligibility for long-term care, subject to New York’s five-year look-back period.
The five-year look-back is important to understand early: transfers into an irrevocable trust must generally be made at least five years before applying for Medicaid long-term care benefits to avoid a penalty period. Planning ahead is everything. See our irrevocable trust page for details.
Supplemental (Special) Needs Trust
A supplemental needs trust (SNT), sometimes called a special needs trust, is designed for a beneficiary with a disability. Its purpose is to provide for that person’s quality of life without disqualifying them from means-tested government benefits such as Medicaid and SSI.
In New York, supplemental needs trusts are authorized under EPTL § 7-1.12. A properly drafted SNT lets a loved one receive supplemental support — for things like therapies, education, or personal comforts — while preserving the essential benefits they rely on. For many families, this is the single most reassuring document they create. Visit our special needs trust page to learn more.
Trust vs. Will: A Side-by-Side Look
First-timers often ask whether they need a trust or a will. The honest answer is that they do different jobs, and many people benefit from both. The key difference comes down to probate and privacy.
| Feature | Revocable Trust | Will |
|---|---|---|
| Goes through probate? | No | Yes — in Surrogate’s Court |
| Public or private? | Private | Public court record |
| Manages incapacity while you’re alive? | Yes (successor trustee) | No |
| Can be changed during your life? | Yes | Yes |
| Effective when? | As soon as it’s funded | Only after death |
A trust avoids probate and keeps your affairs private. A will, by contrast, must be filed and proven in the Surrogate’s Court, which makes it part of the public record and can take time. Neither is “better” in the abstract — the right mix depends on your family and assets. Our trust vs. will page walks through this comparison in more depth.
What a Trustee Actually Does
Choosing a trustee is one of the most important decisions you will make, so it helps to know what the role requires. New York holds trustees to real legal standards — these are not loose suggestions.
A trustee owes the beneficiaries several core fiduciary duties:
- The prudent-investor standard — under EPTL Article 11-A, a trustee must invest and manage trust assets with care, skill, and caution, the way a thoughtful investor would.
- The duty of loyalty — the trustee must act solely in the beneficiaries’ interest, never for personal gain.
- The duty to account — the trustee must keep records and report to beneficiaries about how the trust is being managed.
Trustees may be entitled to commissions under New York’s statutory schedules found in the SCPA and EPTL; the exact figures depend on the trust and are set by those schedules rather than invented case by case. Our trust administration page explains the ongoing responsibilities in practical terms.
The 2026 New York Estate Tax: Numbers to Know
If estate tax is part of your concern, two New York figures matter for 2026:
- Basic exclusion amount: $7,350,000. Estates below this generally owe no New York estate tax.
- The “cliff”: at 105% of the exclusion — $7,717,500 — the exemption disappears entirely. An estate that crosses the cliff loses the entire exemption, not just the amount above it.
This cliff is unusual and is exactly why thoughtful planning matters for larger estates. Falling just over the threshold can cost far more than falling just under it. For most first-time planners, your estate is comfortably below these numbers — but it is worth knowing where the lines are drawn.
How to Get Started Without Feeling Overwhelmed
You do not need to have everything figured out before you talk to an attorney. The essentials are simple: know roughly what you own, think about who you want to provide for, and bring your questions. We handle the legal architecture from there.
Ready to take the first step? You can schedule a 30-minute consultation with Russel Morgan, Esq. to talk through your situation. There is no pressure — just clear answers.
Frequently Asked Questions
Do I need a trust if I already have a will?
Possibly both. A will still requires probate in the Surrogate’s Court and becomes a public record, while a revocable trust avoids probate and stays private. Many New Yorkers use a will and a trust together so each handles what it does best.
Will a revocable living trust lower my estate taxes?
No. Because you keep full control over a revocable trust, its assets remain in your taxable estate. Its benefits are avoiding probate, maintaining privacy, and managing incapacity — not tax reduction. Estate-tax reduction generally calls for an irrevocable trust.
What is the five-year look-back for Medicaid planning?
When you transfer assets into an irrevocable trust for Medicaid planning, those transfers must generally be made at least five years before applying for long-term care benefits. Transfers made within that window can trigger a penalty period, which is why early planning is so valuable.
Can a trust protect a family member with a disability?
Yes. A supplemental needs trust under EPTL § 7-1.12 lets you provide extra support for a disabled loved one without disqualifying them from means-tested benefits like Medicaid and SSI. It is one of the most protective tools available to New York families.
Does Morgan Legal Group serve my part of New York?
Yes. We assist clients statewide — across New York City, Long Island, Westchester, the Hudson Valley, and Upstate New York. Trust law in New York is set by the EPTL and applies the same wherever you live in the state.
Further reading from Morgan Legal Group: how trusts work in New York.