A trust is a legal arrangement in which a trustee holds and manages assets for the benefit of others under terms you set. Its core benefit on Long Island is that property held in a properly funded trust passes to beneficiaries without going through the Nassau or Suffolk Surrogate’s Court — saving probate time, court fees, and the public exposure of a will. Trusts also provide incapacity protection, privacy, and, in irrevocable form, Medicaid asset protection. Here is how they work under New York law.
Grantor: the person who creates and funds a trust (also called settlor or trustor). Trustee: the person or institution that holds legal title and manages trust assets per the terms. Beneficiary: the person entitled to benefit from the trust. Corpus: the property held in the trust (also called the trust principal or res).
Revocable living trust vs. will — a comparison
| Feature | Revocable living trust | Will |
|---|---|---|
| Avoids probate | Yes (for funded assets) | No — must be probated |
| Privacy | Private; not filed publicly | Filed with Surrogate’s Court, public |
| Control during life | Full — you remain trustee | Full — no effect until death |
| Incapacity planning | Yes — successor trustee steps in | No — needs separate POA |
| Upfront cost/effort | Higher (drafting + funding) | Lower |
| Estate tax savings | None by itself (revocable = in your estate) | None |
For most Long Island families, the decisive factor is probate avoidance: a funded revocable trust lets the successor trustee transfer the Massapequa house or Smithtown bank accounts to heirs without filing in Mineola or Riverhead.
Irrevocable trusts and Medicaid Asset Protection Trusts
An irrevocable trust removes your control (and ownership) of assets in exchange for protection — most importantly, protection from long-term-care costs. A Medicaid Asset Protection Trust (MAPT) is an irrevocable trust used so that, after the lookback period, the transferred home and savings are not counted for nursing-home Medicaid eligibility.
The key rule is the five-year lookback: transfers into a MAPT made within 60 months before applying for institutional Medicaid can trigger a penalty period. This is why Long Island planners often recommend funding a MAPT well before care is needed — the appreciated single-family home is frequently a family’s largest asset and most worth protecting. (Community Medicaid has a separate, shorter lookback being phased in — verify current rules.)
New York trust types at a glance
| Trust type | Revocable? | Primary use |
|---|---|---|
| Revocable living trust | Yes | Probate avoidance, incapacity, privacy |
| Irrevocable trust | No | Asset protection, estate-tax planning |
| Medicaid Asset Protection Trust | No | Shield home/savings from nursing-home costs (5-yr lookback) |
| Supplemental Needs Trust (EPTL 7-1.12) | Varies | Provide for a disabled beneficiary without losing benefits |
| Testamentary trust | Created by will | Trust that arises at death; does NOT avoid probate |
A Supplemental (Special) Needs Trust under EPTL 7-1.12 lets you provide for a child or relative with disabilities without disqualifying them from Medicaid and SSI — vital for many Long Island families with a dependent beneficiary.
Funding the trust — why unfunded trusts fail
A trust controls only what is titled into it. A revocable living trust you sign but never fund is an empty shell: the Hempstead house still in your individual name will still go through probate. Funding means retitling the deed, bank accounts, and brokerage accounts into the trust’s name. Coordinating real-property deeds (the LI norm) is the step most do-it-yourself trusts get wrong.
Trustee duties under New York law (EPTL 11-2.3)
A trustee is a fiduciary bound by the Prudent Investor Act, EPTL 11-2.3. That means diversifying investments, managing trust assets with reasonable care and skill, treating beneficiaries impartially, avoiding self-dealing, and keeping clear records. A trustee who breaches these duties can be held personally liable — the same prudent-fiduciary standard that governs an executor.
Local angle: probate avoidance for Long Island property
Long Island estates differ from Manhattan and Brooklyn estates in one defining way: they revolve around real property — detached single-family homes — rather than co-op shares. New York has no transfer-on-death deed for real estate, so a solely owned Long Island home will land in Surrogate’s Court unless it is held in a trust, owned jointly with survivorship, or otherwise planned around. A funded revocable trust is therefore one of the cleanest ways for a Garden City or Huntington homeowner to keep the family home out of probate. Add a boat, a small business, or an East-End second home, and a trust can consolidate the transfer of multiple asset types in one private instrument.
Frequently asked questions
Do I need a trust if I already have a will? A will does not avoid probate — it goes through it. If keeping your Long Island home out of the Nassau or Suffolk Surrogate’s Court matters to you, a funded revocable trust is the tool that does it.
Does a revocable trust save estate taxes? No. Because you keep control, the assets remain in your taxable estate for both NY and federal purposes. See estate taxes; irrevocable trusts (like ILITs) are the tax-planning tools.
Will a Medicaid trust protect my house immediately? No — the five-year lookback applies to institutional Medicaid. Funding the MAPT early is essential.
Who should be my successor trustee? Someone organized, trustworthy, and ideally local to Nassau or Suffolk so they can handle the home and accounts efficiently. A professional trustee is an option for larger estates.
Decide whether a trust fits your estate
Whether a revocable or irrevocable trust makes sense depends on your assets, your family, and your long-term-care outlook. Book a 30-minute consult with Russel Morgan via Calendly, or compare with the wills guide and the Long Island estate guide.
Have a question about your estate?
Talk it through with Russel Morgan — free 30-minute consult.