Can a trust really protect your assets in New York? Yes—when the right type of trust is chosen for the right goal. A properly drafted trust can keep your estate out of the public probate process, shield assets from creditors and long-term-care costs, preserve eligibility for means-tested benefits, and even reduce New York estate tax exposure. But the protection you get depends entirely on which trust you use and how it is structured. Because New Yorkers ask us the same questions over and over, this guide is written as a series of plain-English answers to the concerns we hear most often at Morgan Legal Group. Trusts in New York are governed by the Estates, Powers and Trusts Law (EPTL) Article 7, and the answers below reflect that framework.
What Is a Trust, and Why Would I Want One?
A trust is a legal arrangement in which you (the grantor) transfer assets to a trustee, who manages them for the benefit of your beneficiaries under the terms you set. The appeal is control and protection: you decide who receives what, when, and under what conditions—without a judge or the public ever getting involved.
People in New York create trusts for several reasons:
- Avoiding probate so heirs receive assets faster and privately
- Planning for incapacity so someone you trust manages your affairs if you cannot
- Protecting assets from creditors, lawsuits, or nursing-home costs
- Reducing estate tax for larger estates
- Caring for a disabled loved one without disqualifying them from benefits
To explore the full range of options, see our trusts overview.
Revocable or Irrevocable—Which Trust Actually Protects My Assets?
This is the single most common point of confusion. The short answer: a revocable trust protects your privacy and your family from probate, while an irrevocable trust protects your assets from creditors and taxes. They are different tools for different jobs.
| Feature | Revocable Living Trust | Irrevocable Trust |
|---|---|---|
| Can you amend or revoke it? | Yes—full control | Generally no |
| Avoids probate? | Yes | Yes |
| Provides privacy? | Yes | Yes |
| Saves NY estate tax? | No—assets stay in your taxable estate | Yes |
| Protects from creditors? | No | Yes |
| Used for Medicaid planning? | No | Yes (5-year look-back applies) |
A revocable living trust lets you keep complete control—you can amend or revoke it anytime during your life. Its primary benefits are avoiding probate, maintaining privacy, and managing your affairs if you become incapacitated. What it does not do is save estate tax, because the assets remain part of your taxable estate. Learn more on our revocable living trust page.
An irrevocable trust generally cannot be amended once created—you give up control. In exchange, the assets can be removed from your taxable estate and shielded from creditors, which makes this the tool of choice for estate-tax reduction and Medicaid planning. See our irrevocable trust page for details.
Will a Trust Help Me Qualify for Medicaid?
It can—but timing is everything. An irrevocable trust is a cornerstone of New York Medicaid planning because assets properly transferred into it are no longer counted as your resources. The catch is the five-year look-back: transfers made within five years of applying for institutional (nursing-home) Medicaid can trigger a penalty period. That is why advance planning matters. Putting your home or savings into an irrevocable trust today can protect them years from now, but waiting until a crisis often forecloses the option.
What If I Have a Loved One With Special Needs?
Leaving money directly to a disabled family member can be a costly mistake—it can disqualify them from Medicaid and Supplemental Security Income (SSI), both of which are means-tested. The solution is a Supplemental (Special) Needs Trust (SNT), authorized under EPTL 7-1.12. Assets held in a properly drafted SNT are not counted against the beneficiary, so they can keep their government benefits while the trust pays for extras that improve quality of life—therapies, education, travel, and personal care. Our special needs trust page explains how these trusts are structured in New York.
Do I Still Need a Will If I Have a Trust?
A trust and a will do different things, and most New Yorkers benefit from having both. The key difference comes down to probate and privacy:
- A will is a public document that must be filed and proven in the Surrogate’s Court—a process called probate.
- A trust avoids probate entirely and remains private; the terms are never part of the public record.
Even with a fully funded trust, a “pour-over” will is useful as a safety net for any asset you forgot to title in the trust’s name. Compare the two on our trust vs. will page.
What Are My Trustee’s Responsibilities?
A trustee is a fiduciary—held to the highest standard New York law imposes. Under the prudent-investor standard of EPTL Article 11-A, a trustee must invest and manage trust assets with care and skill. The trustee also owes a duty of loyalty (acting solely in the beneficiaries’ interest, never self-dealing) and a duty to account, meaning beneficiaries are entitled to a clear reporting of what the trustee has done with the assets. New York’s SCPA and EPTL also set out the commission schedules that govern how trustees are compensated. Choosing the right trustee—and understanding these duties—is essential, which is why we guide families through ongoing trust administration.
How Much Can Pass Free of New York Estate Tax in 2026?
For 2026, the New York basic exclusion amount is $7,350,000. But New York has a feature that traps the unwary: the “cliff.” Once an estate exceeds 105% of the exclusion—$7,717,500—it loses the entire exemption, not just the excess. Estates that fall into this narrow zone can owe tax on the first dollar. This is one of the strongest arguments for proactive planning with irrevocable trusts, which can move assets out of the taxable estate before the cliff becomes a problem.
Frequently Asked Questions
Does a revocable living trust protect my assets from creditors or nursing-home costs?
No. Because you retain full control and can revoke it, the law still treats those assets as yours. For creditor and long-term-care protection, an irrevocable trust is required.
How long does the Medicaid look-back last in New York?
Five years for institutional (nursing-home) Medicaid. Transfers into an irrevocable trust within that window can cause a penalty period, so plan well in advance.
Can I be the trustee of my own trust?
For a revocable living trust, yes—most grantors serve as their own trustee while alive. For an irrevocable trust used for tax or Medicaid planning, you generally must name someone else to achieve the intended protection.
Is a trust only for the wealthy?
No. While irrevocable trusts help estates near the $7,717,500 cliff, revocable trusts benefit anyone who wants to avoid probate, protect privacy, or plan for incapacity—regardless of net worth.
Protect What You’ve Built—Speak With Morgan Legal Group
Every family’s situation is different, and the wrong trust can leave you exposed while the right one safeguards everything you’ve worked for. Russel Morgan, Esq. and the team at Morgan Legal Group help New Yorkers across the state choose, draft, and fund the trust that fits their goals.
Schedule your 30-minute consultation with Russel Morgan, Esq. and start protecting your assets today.
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