Protecting Your Assets With a Trust in New York

You protect your assets with a trust in New York by transferring ownership of property into a legal arrangement—governed by the New York Estates, Powers and Trusts Law (EPTL) Article 7—that holds and manages those assets for your benefit and the benefit of the people you choose. Depending on the type of trust, this single document can let you avoid probate, keep your affairs private, plan for incapacity, shield assets from creditors and long-term-care costs, reduce or eliminate New York estate tax, and preserve government benefits for a loved one with disabilities. At Morgan Legal Group, attorney Russel Morgan, Esq. and our team prepare the full spectrum of trust documents so your plan fits your family, your goals, and New York law—not a one-size-fits-all template.

This article takes a services-overview approach. Rather than focusing on a single instrument, it walks through the breadth of trust documents we draft, who each one is for, and how they work together to protect what you have built.

Why a Trust—and Not Just a Will?

A will is a perfectly valid tool, but it has limits. A will must be probated in the Surrogate’s Court, which makes it a public proceeding, and it does nothing to manage your assets if you become incapacitated during your lifetime. A trust solves both problems:

• Avoids probate. Assets titled in a properly funded trust pass to your beneficiaries without court supervision.
• Privacy. Unlike a probated will, the terms of a trust are not filed in a public court record.
• Incapacity protection. A successor trustee can step in and manage trust assets if you can no longer act for yourself—no guardianship required.

We explore this comparison in depth on our Trust vs. Will page, and we frequently recommend pairing a trust with a “pour-over” will so nothing is left out of your plan.

The Trust Documents We Prepare

Morgan Legal Group drafts a wide range of trusts. The right combination depends on your assets, your tax exposure, and your family’s needs.

Revocable Living Trust

A revocable living trust keeps you firmly in control. As grantor, you can amend it or revoke it entirely at any time during your life. Its primary benefits are:

• Avoiding probate on the assets you fund into it;
• Privacy for your estate plan; and
• Seamless incapacity management through a successor trustee.

Important to understand: a revocable trust does not save estate tax. Because you retain full control, the assets remain part of your taxable estate. It is a control-and-probate tool, not a tax-reduction tool. Learn more on our Revocable Living Trust page.

Irrevocable Trust

An irrevocable trust generally cannot be amended or revoked once established—and that loss of control is precisely what makes it powerful. By giving up ownership, you can:

• Reduce estate tax by removing assets from your taxable estate;
• Protect assets from future creditors; and
• Plan for Medicaid, subject to New York’s five-year look-back period for asset transfers.

Because the look-back can disqualify benefits if assets are transferred too close to the time care is needed, irrevocable Medicaid planning works best when started early. See our Irrevocable Trust page for a fuller discussion.

Supplemental (Special) Needs Trust

A Supplemental Needs Trust (SNT), authorized under EPTL § 7-1.12, allows you to provide for a loved one with a disability without disqualifying them from means-tested benefits such as Medicaid and Supplemental Security Income (SSI). The trust pays for goods and services that improve quality of life while the beneficiary’s eligibility for essential public benefits remains intact. This is one of the most compassionate and technically demanding documents we prepare; our Special Needs Trust page explains how it works.

Putting It Together

Trust Type	Can You Change It?	Avoids Probate?	Reduces Estate Tax?	Common Purpose
Revocable Living Trust	Yes—amend or revoke anytime	Yes	No	Control, privacy, incapacity
Irrevocable Trust	Generally no	Yes	Yes	Tax reduction, asset protection, Medicaid
Supplemental Needs Trust	Per its terms	Yes	Varies	Preserve Medicaid/SSI for a disabled beneficiary

New York Estate Tax in 2026: Mind the Cliff

For 2026, New York’s basic exclusion amount is $7,350,000. That figure comes with a uniquely New York trap: the “cliff.” If your taxable estate exceeds 105% of the exclusion—$7,717,500—you lose the entire exemption, not just the amount over the line, and the whole estate becomes taxable. Estates that approach the cliff often benefit from irrevocable trust planning and charitable strategies to stay under the threshold. We model these numbers carefully so a few extra dollars do not cost your family a fortune.

The Trustee’s Job: Fiduciary Duties

Choosing a trustee is one of the most important decisions in trust planning, because a trustee owes strict fiduciary duties under New York law:

• Prudent-investor standard. Under EPTL Article 11-A, the trustee must invest trust assets with care, skill, and caution, considering the trust’s purposes and beneficiaries.
• Duty of loyalty. The trustee must act solely in the beneficiaries’ interest and avoid self-dealing.
• Duty to account. The trustee must keep records and account to the beneficiaries for the trust’s administration.

New York’s SCPA and EPTL also set out commission schedules that govern how trustees are compensated. Ongoing administration—funding, recordkeeping, tax filings, distributions, and accountings—is its own discipline, which is why we offer dedicated Trust Administration support to trustees and families.

How Our Services Fit Together

For most clients, asset protection is not a single document but a coordinated set: a foundational trust (revocable or irrevocable), a pour-over will, powers of attorney, health care directives, and—where needed—a supplemental needs trust for a family member. We start by understanding your assets and goals, then recommend the documents that actually move the needle. You can review the full menu on our Trusts Overview page.

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 stay in your taxable estate. For estate-tax reduction, an irrevocable trust is the appropriate tool.

What is the five-year look-back?
For Medicaid planning, transfers of assets—including into certain irrevocable trusts—are reviewed over a five-year look-back period. Transfers made too close to the time care is needed can trigger a penalty, which is why early planning matters.

Will a trust keep my estate out of court?
A properly funded trust avoids probate in the Surrogate’s Court for the assets it holds. A will, by contrast, must be probated and becomes part of the public record.

Can I provide for a disabled child without ending their benefits?
Yes. A Supplemental Needs Trust under EPTL § 7-1.12 lets you enhance a disabled beneficiary’s life while preserving means-tested benefits like Medicaid and SSI.

Speak With a New York Trust Attorney

Protecting your assets starts with the right plan—and the right documents. Whether you need a single revocable trust or a coordinated estate-protection strategy, Morgan Legal Group can help. Schedule a consultation with Russel Morgan, Esq.: https://calendly.com/russel-morgan/30min.