If you have just been named a trustee, are deciding whether a trust fits your family, or are trying to understand what a New York trust actually does, this page is built to point you toward your next action. Below are the questions we hear most often from clients across New York — New York City, Long Island, Westchester, the Hudson Valley, and Upstate — answered with the governing statutes and a clear “what to do next.”
New York trusts are governed by the Estates, Powers and Trusts Law (EPTL), Article 7. Use the quick-reference table, then work through the Q&A.
Quick-Reference: New York Trust Facts at a Glance
| Topic | Key fact | Statute / figure |
|---|---|---|
| Governing law | NY trusts | EPTL Article 7 |
| Revocable trust | Avoids probate, privacy, incapacity planning — no estate-tax savings | EPTL Art. 7 |
| Irrevocable trust | Estate-tax reduction, asset protection, Medicaid | 5-year look-back |
| Special needs trust | Preserves Medicaid/SSI for a disabled beneficiary | EPTL 7-1.12 |
| Trustee standard | Prudent investor | EPTL Article 11-A |
| 2026 NY estate-tax exclusion | Basic exclusion | $7,350,000 |
| Estate-tax “cliff” | 105% of exclusion — exceed it and lose the entire exemption | $7,717,500 |
Frequently Asked Questions
1. I was just named trustee. What are my first steps?
Start with a short checklist: (1) locate the original signed trust instrument and read it in full; (2) identify and notify the beneficiaries; (3) secure and inventory the trust assets; (4) obtain a tax identification number for an irrevocable trust and open a dedicated trust bank account; (5) gather date-of-death values if you are administering after a grantor’s passing; and (6) calendar your duty to account. Because a trustee owes fiduciary duties from day one, it is wise to get guidance early — see our trust administration overview and book a consultation.
2. What duties does a New York trustee owe?
A trustee owes three core fiduciary duties: the prudent-investor standard under EPTL Article 11-A (invest and manage assets with reasonable care, skill, and caution), the duty of loyalty (act solely in the beneficiaries’ interest — no self-dealing), and the duty to account to the beneficiaries (keep records and report on receipts, disbursements, and asset values). Breaching these duties can expose a trustee to personal liability.
3. What is the difference between a revocable and an irrevocable trust?
| Feature | Revocable living trust | Irrevocable trust |
|---|---|---|
| Can grantor amend/revoke? | Yes | Generally no |
| Avoids probate | Yes | Yes |
| Estate-tax savings | No (stays in taxable estate) | Yes (removes assets) |
| Asset protection / Medicaid | No | Yes (5-year look-back) |
A revocable living trust lets the grantor keep full control and change or cancel it at any time; its benefits are avoiding probate, privacy, and incapacity management — but the assets remain in the taxable estate. An irrevocable trust generally cannot be changed, but it can reduce estate tax, protect assets, and support Medicaid planning. Read more on revocable living trusts and irrevocable trusts.
4. Does a revocable living trust save estate tax?
No. This is one of the most common misconceptions. A revocable trust does not save estate tax because the grantor retains control, so the assets remain part of the taxable estate. Its value is in avoiding probate, maintaining privacy, and managing incapacity. To remove assets from your taxable estate, you generally need an irrevocable trust.
5. What is the Medicaid 5-year look-back, and how does an irrevocable trust fit in?
When you apply for Medicaid long-term care, the program reviews transfers made during the prior five years. Assets you placed into an irrevocable trust before that window can generally be protected, while transfers inside the window may create a penalty period. The practical takeaway: irrevocable Medicaid planning works best when done early, before the need for care arises. Start by reviewing your timeline with us.
6. What is a Supplemental (Special) Needs Trust?
A Supplemental or Special Needs Trust (SNT), authorized under EPTL 7-1.12, holds assets for a disabled beneficiary without disqualifying them from means-tested benefits such as Medicaid and SSI. The trust supplements — rather than replaces — government benefits, paying for items those programs do not cover. See our special needs trust page if a loved one with a disability is involved.
7. How is the 2026 New York estate-tax “cliff” different from the federal exemption?
New York uses a basic exclusion amount of $7,350,000 in 2026, but it has a “cliff” at 105% of that figure — $7,717,500. An estate valued over the cliff loses the entire exemption and is taxed on the full amount, not just the excess. This makes proactive planning critical for estates near the threshold. The next step for many families is modeling whether trusts can keep the taxable estate below the cliff.
8. Trust vs. will — which one do I need?
| Trust | Will | |
|---|---|---|
| Probate | Avoids it | Must be probated in Surrogate’s Court |
| Privacy | Private | Public record |
| Incapacity planning | Yes (revocable) | No |
A trust avoids probate and stays private; a will is a public document that must be probated in the Surrogate’s Court. Many New Yorkers use both — a will as a backstop and a trust as the primary vehicle. Compare them on our trust vs. will page.
9. Do New York trustees receive a commission?
Yes — New York law provides statutory commission schedules for trustees under the SCPA and EPTL. The exact amount depends on the value of the trust and the services performed. We do not quote a flat figure here because commissions are calculated by statute; ask us to walk through how the schedule applies to your trust.
10. What should I do next?
Pick the path that fits your situation: if you are a new trustee, work the checklist in Question 1 and get the trust reviewed. If you are planning your estate, start with our trusts overview and consider where you fall relative to the 2026 cliff. Either way, the most useful next step is a focused conversation. Schedule a 30-minute consultation with Russel Morgan, Esq.
This page is general information about New York law, not legal advice. For guidance on your specific situation, consult an attorney. Statutory references: EPTL Article 7, EPTL Article 11-A, and NY estate tax.
Further reading from Morgan Legal Group: how an irrevocable trust works.