Irrevocable Trust Services Across New York

An irrevocable trust is one of the most powerful — and most misunderstood — instruments in New York estate planning. Unlike a revocable living trust, it is built to be permanent: once funded, the grantor generally surrenders the right to amend or revoke it. That permanence is precisely what makes it work. By moving assets outside of your control, an irrevocable trust can reduce or eliminate New York estate tax, shield property from creditors and long-term-care costs, and protect eligibility for means-tested benefits like Medicaid.

At Morgan Legal Group, attorney Russel Morgan, Esq. and our team prepare the full range of irrevocable trust documents for clients statewide — from Manhattan, Brooklyn and Queens, across Long Island and Westchester, through the Hudson Valley and into Upstate New York. This page takes a services-overview approach: rather than focusing on a single trust template, we walk through the breadth of irrevocable instruments we draft, the New York law that governs them, and how each one fits into a coordinated plan.

What “Irrevocable” Actually Means Under New York Law

New York trusts are governed by the Estates, Powers and Trusts Law (EPTL) Article 7. When a trust is irrevocable, the grantor relinquishes ownership and control of the transferred assets. Because the assets are no longer legally yours, they are generally removed from your taxable estate and placed beyond the reach of future creditors — the two features that drive most of the planning we do.

This is the critical contrast with a revocable living trust, where the grantor keeps full control and can amend or revoke at any time. A revocable trust is excellent for avoiding probate, preserving privacy, and managing assets during incapacity — but because you retain control, the assets stay inside your taxable estate and offer no estate-tax savings or asset protection. An irrevocable trust trades flexibility for those protections. Choosing between them is the central decision we help every client think through, and you can compare the broader landscape on our trusts overview.

The Range of Irrevocable Trusts We Draft

Because the term “irrevocable trust” covers a family of instruments, the value we provide is in matching the right structure to your goal. Below is a fact-list of the documents and planning purposes we handle most often.

Planning Goal	Instrument We Prepare	Governing NY Authority
Estate-tax reduction	Irrevocable trust removing assets from the taxable estate	EPTL Article 7
Asset / creditor protection	Irrevocable trust holding assets outside grantor’s ownership	EPTL Article 7
Medicaid long-term-care planning	Irrevocable trust subject to the 5-year look-back	EPTL Article 7
Benefits for a disabled loved one	Supplemental / Special Needs Trust (SNT)	EPTL § 7-1.12
Trustee management & accounting	Trustee provisions; prudent-investor standard	EPTL Article 11-A
Surrogate-court-free transfer	Trust funding to avoid probate	EPTL Article 7

Estate-Tax Reduction Trusts

New York imposes its own estate tax, separate from the federal system, and its mechanics are unforgiving. For 2026, the basic exclusion amount is $7,350,000. New York also enforces a “cliff”: estates valued at more than 105% of the exclusion — $7,717,500 — lose the entire exemption, not just the excess. An estate of $7.8 million can therefore be taxed on every dollar from the first. Irrevocable trusts are a primary tool for moving value out of the taxable estate so that families stay below the exclusion and clear of the cliff. We draft these instruments to coordinate with gifting strategy and with your overall plan.

Medicaid Asset-Protection Trusts

For clients concerned about the cost of nursing-home or home-care, an irrevocable Medicaid trust can protect the family home and other assets from being spent down on care. The trade-off is timing: transfers into the trust are subject to a five-year look-back, meaning the planning must be done well before benefits are needed. We draft these trusts to keep your home protected while preserving your right to live in it and to receive income where appropriate.

Supplemental / Special Needs Trusts (SNT)

A special needs trust under EPTL § 7-1.12 allows you to provide for a disabled beneficiary without disqualifying them from means-tested government programs such as Medicaid and SSI. Properly drafted, the SNT supplements — rather than replaces — public benefits, funding quality-of-life needs the programs do not cover. This is precision drafting: a single misworded distribution clause can cost a beneficiary their benefits, which is why these documents belong in experienced hands.

Trustee Selection and Fiduciary Duties

An irrevocable trust is only as strong as its trustee. Under New York law, a trustee is a fiduciary bound by serious legal duties, and the documents we prepare are written to make those duties enforceable and clear.

• Prudent-investor standard — trustees must invest and manage trust assets with care and skill under EPTL Article 11-A.
• Duty of loyalty — the trustee must act solely in the beneficiaries’ interest, free of self-dealing.
• Duty to account — the trustee must keep records and provide a formal accounting to the beneficiaries.

New York’s SCPA and EPTL establish commission schedules that govern how trustees are compensated; we explain those schedules during planning so there are no surprises. (We do not quote fixed commission figures here, because the applicable schedule depends on the facts of each trust.) Ongoing oversight of a funded trust is part of our trust administration practice, which supports trustees in meeting these obligations year after year.

Trust vs. Will: Why the Choice Matters

A common question is whether an irrevocable trust replaces a will. In most plans, the two work together. The fundamental difference is procedural and public-versus-private:

• A will must be filed and probated in the Surrogate’s Court, making it a matter of public record.
• A trust transfers assets outside of probate, keeping the details private and avoiding court delay.

Because a properly funded trust sidesteps the Surrogate’s Court entirely, it offers privacy and continuity that a will alone cannot. We explore this comparison in depth on our trust vs. will page. For most New York families, the answer is not “either/or” but a coordinated plan that uses a will as a safety net (a pour-over will) alongside one or more trusts.

How Morgan Legal Group Builds Your Irrevocable Trust

Our services-driven process is designed to produce documents that hold up — legally and practically:

1. Goal analysis. We identify whether your priority is tax reduction, asset protection, Medicaid eligibility, or providing for a special-needs beneficiary — often a combination.
2. Instrument selection. We match the right irrevocable structure to those goals, drawing on the full range of EPTL Article 7 instruments.
3. Drafting. We prepare the trust agreement and all supporting documents with the precision New York’s cliff tax and benefits rules demand.
4. Funding. A trust that is never funded protects nothing; we guide the retitling of assets into the trust.
5. Administration support. We remain available to trustees for accounting, investment-standard compliance, and amendments where the structure permits.

Because we serve clients across the entire state, we are equally comfortable planning for a Manhattan co-op, a Long Island family home, a Westchester estate, or Upstate farmland.

Frequently Asked Questions

Can an irrevocable trust ever be changed?

Generally, no — that permanence is the source of its tax and protection benefits. New York law and careful drafting can build in limited flexibility (such as trust protector provisions or decanting), but you should plan on the core terms being fixed. We design each trust with that reality in mind.

Will an irrevocable trust save me New York estate tax?

It can. Because assets in a properly structured irrevocable trust are removed from your taxable estate, they can help keep your estate below the 2026 exclusion of $7,350,000 and clear of the $7,717,500 cliff, beyond which the entire exemption is lost. A revocable trust, by contrast, offers no estate-tax savings.

What is the Medicaid five-year look-back?

When you apply for Medicaid long-term-care coverage, the program reviews transfers — including transfers into an irrevocable trust — made within the five years before application. Transfers in that window can trigger a penalty period, which is why Medicaid asset-protection trusts must be funded well in advance of need.

How is an irrevocable trust different from a special needs trust?

A special needs trust is a specific type of trust, governed by EPTL § 7-1.12, designed to hold assets for a disabled beneficiary without jeopardizing their Medicaid or SSI eligibility. It is one of the irrevocable instruments we prepare; the right choice depends on whose benefits and assets you are protecting.

Do I still need a will if I have an irrevocable trust?

Usually yes. A will — typically a pour-over will — acts as a safety net for any asset not transferred into your trust, and it appoints guardians for minor children. A will must be probated in the Surrogate’s Court, while trust assets pass privately outside of court.

Plan Your Irrevocable Trust With Morgan Legal Group

Every irrevocable trust is a deliberate, lasting decision — and it should be drafted by attorneys who do this work every day across New York. Whether your goal is reducing estate tax under the 2026 cliff, protecting your home from long-term-care costs, or securing a disabled loved one’s future, Morgan Legal Group prepares the documents that make it happen.

Schedule your consultation with Russel Morgan, Esq. and let us match the right instrument to your family’s goals.

This page is for general information about New York law and is not legal advice. Statutes referenced include EPTL Article 7 and the New York estate tax.