Trusts for Non-Citizen Beneficiaries in New York

Yes — you can absolutely leave New York property to a non-citizen beneficiary, and a trust is often the cleanest way to do it. Foreign and non-citizen heirs are allowed to inherit New York assets; their status does not bar them from receiving an inheritance. What changes is the paperwork and the tax treatment. A New York trust can pass assets to a non-citizen child, parent, or partner while skipping the public probate process, and a special type of trust called a QDOT solves a major tax problem when your surviving spouse is not a U.S. citizen. This guide walks through the basics in plain English for families who are new to U.S. estate planning.

How New York Trusts Work (the Quick Version)

New York trusts are governed by EPTL Article 7. The two trust types most families consider are:

• Revocable living trust — You keep control and can change it anytime. It lets your assets avoid probate (the court process), but it offers no estate-tax savings.
• Irrevocable trust — You give up direct control in exchange for benefits: tax reduction, asset protection, and Medicaid planning. Note the 5-year look-back period for Medicaid eligibility.

A trust is private and does not go through Surrogate’s Court the way a will does. That privacy and speed can matter a great deal when beneficiaries live abroad and would otherwise need to navigate New York probate from another country.

If you are still deciding between documents, our overview of a trust vs. a will explains the trade-offs in everyday language.

The Non-Citizen Spouse Problem: Why You May Need a QDOT

Here is the single most important rule for mixed-status couples. Normally, a U.S. citizen can leave an unlimited amount to a spouse with no federal estate tax — the “unlimited marital deduction.” That deduction does NOT apply when the surviving spouse is not a U.S. citizen.

The standard fix is a QDOT (Qualified Domestic Trust). Instead of leaving assets outright to a non-citizen spouse, you leave them to a QDOT, which defers the estate tax while still providing for your spouse. If you are married and one of you is a green-card holder or visa holder rather than a citizen, this is a conversation to have before signing any estate plan.

Foreign and Non-Citizen Beneficiaries: What to Expect

A non-resident or non-citizen beneficiary can inherit New York real estate, accounts, and other property. The catch is documentation and tax withholding. Foreign beneficiaries often need extra identification, and certain transfers (especially real estate) can trigger tax-withholding steps. A trust handles much of this in a controlled, organized way. To understand how a trustee actually distributes assets and manages these steps, see our guide to trust administration.

If a beneficiary has a disability and receives public benefits, a special needs trust under EPTL 7-1.12 can protect both the inheritance and the benefits — this applies to non-citizen beneficiaries too, with care.

Keep New York estate tax in mind. For 2026, the basic exclusion is $7,350,000, but New York has a “cliff”: at 105% of the exclusion ($7,717,500), an estate loses the entire exemption. Larger estates need planning to avoid going over that edge.

Where Estate Planning Ends and Immigration Begins

This is the part families most often get tangled. Estate planning is state law. Immigration is federal law. They are two separate practice areas, handled by two different specialists.

A New York estate attorney sets up your trust, will, power of attorney (GOL §5-1513), and health care proxy (Public Health Law Article 29-C). But that attorney does not adjust anyone’s immigration status. Because immigration is governed by federal law through USCIS, an immigration attorney can represent your family no matter which state you live in.

So if your estate plan touches a relative’s immigration situation — for example, you want to sponsor a family member or secure a green card — the honest answer is to bring in the right specialist. For the federal side, families should consult a family green card and immigration lawyer. Fitenko Law focuses on family-based immigration and green cards and serves Russian- and Ukrainian-speaking families, which can be a real comfort when navigating unfamiliar U.S. processes.

Need	Who handles it
New York trust, will, QDOT, probate	New York estate attorney
Green card, family sponsorship, status	Immigration attorney (federal)

Frequently Asked Questions

Can a non-citizen inherit property in New York?
Yes. Non-resident and non-citizen status does not bar inheritance. Expect added documentation and possible tax-withholding steps.

Do I need a QDOT if my spouse is a green-card holder?
A green-card holder is generally not a U.S. citizen, so the unlimited marital deduction does not automatically apply. A QDOT is the standard tool — discuss it with an estate attorney.

Does a trust help foreign beneficiaries avoid probate?
Yes. A properly funded trust passes assets outside of Surrogate’s Court, which is especially helpful when beneficiaries live abroad.

Can my estate attorney handle my relative’s green card?
No. Estate planning is state law and immigration is federal. You will need an immigration attorney for that side.

Next Steps

For your New York trust, QDOT, or estate plan, the team at Morgan Legal Group can walk you through your options — start with our guide to trust administration or schedule a conversation at calendly.com/russel-morgan/30min.

For the immigration side — green cards and family sponsorship — connect with the family immigration lawyer referenced above. Using the right specialist for each part of the puzzle is the surest way to protect both your family and your assets.