If you are sitting at your kitchen table wondering what to do about a trust — whether to create one, fund one, or step in as the trustee of one — you don’t need another abstract lecture. You need a checklist. This page walks through the concrete next steps for New York families, from the Hudson Valley to Long Island, from Westchester to Upstate, so you know exactly what happens next and who handles it.
New York trusts are governed by the Estates, Powers and Trusts Law (EPTL) Article 7. The right trust for you depends entirely on your goal: avoiding probate, reducing estate tax, protecting assets, qualifying for Medicaid, or providing for a loved one with disabilities. Below, we cut through the jargon and give you an action plan.
First Step: Match Your Goal to the Right Trust
Before signing anything, identify what you actually want the trust to accomplish. Each type of New York trust solves a different problem.
| Your Goal | Trust to Consider | Key New York Rule |
|---|---|---|
| Avoid probate; keep control; privacy | Revocable Living Trust | You may amend or revoke at any time; assets stay in your taxable estate |
| Reduce estate tax; protect assets; Medicaid | Irrevocable Trust | Generally cannot be amended; 5-year Medicaid look-back applies |
| Provide for a disabled loved one | Supplemental / Special Needs Trust | EPTL 7-1.12; preserves Medicaid & SSI eligibility |
| Avoid public probate court entirely | Trust (vs. Will) | A will must be probated in Surrogate’s Court; a trust stays private |
Learn more on our Trusts Overview page, then drill into the specific structure that fits.
The Revocable Living Trust Checklist
A revocable living trust is the workhorse of New York estate planning. You, the grantor, keep complete control — you can amend or revoke it whenever you like.
What it does well:
- Avoids probate. Assets titled in the trust pass to beneficiaries without Surrogate’s Court.
- Privacy. Unlike a probated will, the terms never become public record.
- Incapacity management. If you become unable to manage your affairs, your successor trustee steps in immediately — no court guardianship needed.
What it does not do: a revocable trust does not save estate tax. Because you retain control, the assets remain part of your taxable estate. If tax reduction is the goal, you need a different tool.
Next step: Sign the trust and then fund it. An unfunded trust accomplishes nothing — retitle your home, accounts, and assets into the trust’s name. This funding step is where most do-it-yourself plans fail.
The Irrevocable Trust Checklist
An irrevocable trust generally cannot be amended once created. In exchange for giving up control, you gain three powerful benefits:
- Estate-tax reduction — assets can be removed from your taxable estate.
- Asset protection — properly structured, the trust shields assets from certain creditors.
- Medicaid planning — but mind the 5-year look-back. Transfers into the trust must be made well before you need long-term care, or they trigger a penalty period.
Next step: Because the 5-year clock is unforgiving, the practical move is to plan early. Waiting until a health crisis usually means the look-back works against you.
The Special Needs Trust Checklist
A special needs trust (also called a supplemental needs trust) lets you provide for a disabled beneficiary without disqualifying them from means-tested benefits like Medicaid and SSI. New York authorizes these trusts under EPTL 7-1.12.
Next step: Coordinate the trust with every other gift and inheritance the beneficiary might receive. A well-meaning relative naming the beneficiary directly in a will can unintentionally destroy benefit eligibility — the trust must be the named recipient.
If You Are the Trustee: Your Administration Checklist
Being named trustee is a serious legal responsibility. Under New York law, a trustee is a fiduciary bound by strict duties. If you’ve just stepped into this role, our trust administration page is your starting point. Here is the short version of your obligations:
- Prudent-investor standard (EPTL Article 11-A) — invest trust assets prudently, with care and diversification.
- Duty of loyalty — act solely in the beneficiaries’ interest, never your own.
- Duty to account — keep clear records and provide beneficiaries with an accounting of the trust’s activity.
New York’s SCPA and EPTL include commission schedules that govern what a trustee may be paid; the exact amount depends on the trust and the statute. (We never quote a figure without reviewing your specific documents.)
Next step as a new trustee: Locate the trust instrument, secure the assets, obtain a tax ID for the trust, notify beneficiaries, and start a clean record-keeping file before you make any distribution.
Trust vs. Will: A Quick Comparison
Many New Yorkers ask whether they even need a trust if they already have a will. See our full trust vs. will breakdown — but the short answer:
- A will must be probated in Surrogate’s Court and becomes a public record.
- A trust avoids probate and stays private.
Most complete plans use both: a trust to hold and pass assets privately, and a “pour-over” will as a safety net.
The 2026 New York Estate Tax: Know the Cliff
New York’s estate tax has a feature that surprises many families. For 2026:
- Basic exclusion amount: $7,350,000
- The “cliff” kicks in at 105% of the exclusion = $7,717,500
Here’s why the cliff matters: if your taxable estate exceeds $7,717,500, you lose the entire exemption — not just the amount over the line. The whole estate becomes taxable. Families near this threshold should plan deliberately, because a small difference can mean a very large tax bill.
Frequently Asked Questions
Does a revocable living trust lower my New York estate tax?
No. Because you keep the power to amend or revoke it, the assets remain in your taxable estate. For estate-tax reduction, an irrevocable trust is the appropriate tool.
What is the Medicaid look-back for an irrevocable trust in New York?
Transfers into an irrevocable trust are subject to a 5-year look-back for nursing-home Medicaid. Plan early — assets must generally be in the trust five years before you apply.
Can I provide for my disabled child without ending their benefits?
Yes. A supplemental/special needs trust under EPTL 7-1.12 holds assets for a disabled beneficiary while preserving Medicaid and SSI eligibility.
What are my main duties if I’ve been named trustee?
You must follow the prudent-investor standard (EPTL Article 11-A), act loyally and solely for the beneficiaries, and account to them for the trust’s activity.
Does a trust really avoid Surrogate’s Court?
Yes. Assets properly titled in a trust pass outside probate and stay private, unlike a will, which must be probated in Surrogate’s Court.
Your Next Step
Whether you’re choosing your first trust or administering one as trustee, the worst move is to guess. Morgan Legal Group and attorney Russel Morgan, Esq. help New York families across NYC, Long Island, Westchester, the Hudson Valley, and Upstate take the right next step with confidence.
Schedule your consultation with Russel Morgan, Esq. →
This page is general information about New York law, not legal advice. Statutes referenced include EPTL Article 7, EPTL 7-1.12, and EPTL Article 11-A. See the New York EPTL on the NY Senate site and current figures at tax.ny.gov.
Further reading from Morgan Legal Group: how an irrevocable trust works.