A trust is one of the most versatile documents in the estate planning toolkit — and rarely the only one you need. At Morgan Legal Group, attorney Russel Morgan, Esq. and our team prepare the full suite of trust instruments New York families rely on, then coordinate each one with the other documents that make an estate plan whole: your will, your durable power of attorney, and your health care proxy. This page is a services overview. It explains the kinds of trusts we draft, what each one accomplishes under New York law, and how the right combination protects assets, avoids probate, qualifies you for Medicaid, and manages your estate-tax exposure for 2026.
We serve clients statewide — New York City, Long Island, Westchester, the Hudson Valley, and Upstate. Wherever you live in New York, the same body of law governs how your trust is created and administered. The difference is in the drafting, and that is where experienced counsel earns its keep.
Why a Trust — and Why Not Just a Will?
A will (governed by EPTL §3-2.1) directs who receives your property after death, but it does not avoid probate — the court process of validating the will and authorizing the executor. Probate is public, can be slow, and is exposed to challenge. A revocable living trust (authorized under EPTL Article 7) sidesteps probate entirely for the assets you transfer into it, because the trust — not the deceased individual — already owns them.
That is the headline benefit, but it is not the whole story. Different trusts solve different problems:
- Avoiding probate so heirs inherit privately and without court delay.
- Protecting assets from future creditors, lawsuits, or the cost of long-term care.
- Qualifying for Medicaid while preserving a legacy, subject to the five-year look-back.
- Preserving public benefits for a loved one with disabilities.
- Managing estate-tax exposure as New York’s exclusion and its punishing “cliff” come into play.
No single trust does all of these. A comprehensive plan often layers a revocable trust for probate avoidance with an irrevocable trust for protection — which is precisely why we draft the documents as a coordinated set rather than in isolation.
The Trusts We Prepare
The breadth of instruments matters. Below is the core of our trust drafting practice and what each document is built to do.
| Trust Type | Primary Purpose | Avoids Probate? | Estate-Tax / Medicaid Effect |
|---|---|---|---|
| Revocable Living Trust | Probate avoidance, incapacity management, privacy | Yes | No estate-tax savings; assets remain in your taxable estate |
| Irrevocable Trust | Asset protection, tax reduction, Medicaid eligibility | Yes | Removes assets from taxable estate; triggers 5-year Medicaid look-back |
| Medicaid Asset Protection Trust (MAPT) | Shelter the home and savings from nursing-home costs | Yes | Irrevocable; subject to the 5-year look-back |
| Supplemental / Special Needs Trust (SNT) | Provide for a disabled beneficiary without disqualifying benefits | Yes | Preserves Medicaid/SSI eligibility under EPTL 7-1.12 |
| Testamentary Trust | A trust created inside your will, funded at death | No (passes through probate) | Useful for minor children or staged distributions |
Revocable Living Trusts
The revocable living trust is the workhorse of probate avoidance. You remain in full control — you can amend it, add or remove assets, or revoke it entirely during your lifetime. Because you retain that control, the law treats the assets as still yours: a revocable trust provides no estate-tax savings and no creditor protection. What it does provide is a private, court-free transfer of assets at death and a seamless plan for managing your affairs if you become incapacitated, without a guardianship proceeding. For many New Yorkers, that combination alone justifies the trust.
Irrevocable Trusts
When the goal is protection or tax reduction, the trust must be irrevocable — you give up the power to amend or revoke it, and in exchange the assets are removed from your taxable estate and shielded from many future creditors. Irrevocable trusts are the foundation of advanced planning: they reduce estate-tax exposure, protect a family business or vacation home, and form the structure for Medicaid planning. Because the trade-off is permanent, the drafting must be exact, and we walk every client through what they are giving up before they sign.
Medicaid Asset Protection Trusts and the Five-Year Look-Back
Long-term care in New York can cost well over $200,000 a year, and Medicaid is the program most families turn to. But Medicaid imposes a five-year look-back: transfers into an irrevocable trust within five years of applying for nursing-home Medicaid can trigger a penalty period of ineligibility. The planning lesson is simple — earlier is better. A Medicaid Asset Protection Trust funded today starts the clock now, sheltering your home and savings so that, five years out, those assets no longer count against eligibility. We design these trusts to preserve as much benefit and flexibility as the rules allow.
Special Needs Trusts (EPTL 7-1.12)
A direct inheritance can be a curse for a person who relies on Medicaid or SSI, because the windfall disqualifies them from the very benefits they depend on. A Supplemental (Special) Needs Trust under EPTL 7-1.12 solves this: assets are held in trust for the beneficiary’s supplemental needs — therapies, equipment, education, quality of life — without being counted as the beneficiary’s own resources. The benefits stay intact; the inheritance enhances rather than replaces public support. This is among the most consequential documents we draft, and it must be done correctly.
How Trusts Fit Into the Whole Estate Plan
A trust rarely stands alone. A comprehensive New York estate plan coordinates four documents working together:
- Will — your safety net for anything not titled in the trust, naming guardians for minor children and a residuary “pour-over” into your trust (EPTL §3-2.1). Dying without one means intestacy under EPTL Article 4, where the state’s formula — not your wishes — controls.
- Trust(s) — for probate avoidance, protection, Medicaid, and special needs (EPTL Article 7).
- Durable Power of Attorney — under GOL §5-1513, durable by default and now using the 2021 statutory short form, so a trusted agent can manage finances and fund the trust if you cannot.
- Health Care Proxy — under New York Public Health Law Article 29-C, appointing an agent for medical decisions. This is entirely distinct from the financial POA.
We draft and align all four. A trust that is never funded is an empty vessel, and a plan whose documents contradict one another invites litigation. Coordination is the service.
To see how every piece connects, start with our Estate Planning Overview, then explore the documents individually: Wills, Power of Attorney, and the Health Care Proxy.
Trusts and the New York Estate Tax in 2026
For larger estates, trusts are also a tax-planning instrument — and New York’s estate tax is unusually unforgiving. For deaths on or after January 1, 2026 through December 31, 2026, the basic exclusion amount is $7,350,000. But New York imposes a notorious “cliff.” Once an estate exceeds 105% of the exclusion — $7,717,500 — the exemption disappears entirely and the whole estate is taxed from the first dollar, at progressive rates from 3% to 16%.
This is why proactive planning matters near the threshold. New York has no gift tax, so lifetime gifting is a legitimate strategy — but with a catch: gifts made within three years of death are added back to the taxable estate. Irrevocable trusts, properly structured, can keep an estate below the cliff and out of the tax altogether. For a deeper breakdown, see our New York Estate Tax Guide.
Statewide Service, Local Knowledge
Trust law in New York is statewide, but administration touches local courts and practices. Whether you are in Manhattan, Nassau or Suffolk, Westchester, Dutchess or Ulster, or anywhere Upstate, we draft trusts built for your circumstances. Learn more about how we work across the state on our New York Statewide Guide.
Frequently Asked Questions
Does a revocable living trust reduce my New York estate tax?
No. Because you keep full control over a revocable trust, the assets remain part of your taxable estate. Its benefit is probate avoidance and incapacity planning, not tax savings. To reduce estate tax, you generally need an irrevocable trust.
What is the Medicaid five-year look-back?
When you apply for nursing-home Medicaid, the program reviews asset transfers — including funding an irrevocable trust — made in the prior five years. Transfers within that window can create a penalty period of ineligibility. Funding a Medicaid Asset Protection Trust early starts the clock, so plan ahead.
Will a special needs trust disqualify my disabled loved one from benefits?
No — that is its purpose. A Supplemental Needs Trust under EPTL 7-1.12 holds assets for the beneficiary’s supplemental needs without counting as their personal resources, preserving Medicaid and SSI eligibility while enhancing their quality of life.
Do I still need a will if I have a trust?
Yes. A “pour-over” will catches any assets not titled in your trust, names guardians for minor children, and directs that leftover property flow into the trust. Without a will, untrusted assets pass by intestacy under EPTL Article 4 — the state’s formula, not your wishes.
What is the New York estate-tax “cliff” in 2026?
The 2026 basic exclusion is $7,350,000. If an estate exceeds 105% of that — $7,717,500 — the entire exemption is lost and the whole estate is taxed from the first dollar at rates of 3% to 16%. Planning near this threshold is essential.
Ready to put the right trust — and the full plan around it — in place? Schedule a consultation with Russel Morgan, Esq.
Authoritative references: New York State Senate (EPTL) · NY Department of Taxation and Finance — Estate Tax · NY Department of Health
Further reading from Morgan Legal Group: how trusts fit an estate plan.