Most people don’t discover a problem with their estate plan until the moment it’s too late to fix it. A trust signed with good intentions turns out to be the wrong type. A revocable living trust sits unfunded for years. A taxable estate tips over New York’s cliff and loses an exemption worth millions. At Morgan Legal Group, founded by Russel Morgan, Esq., we built this practice around one core insight: in New York estate planning, the most expensive mistakes are almost always preventable.
We serve clients across the entire state — New York City’s five boroughs, Long Island, Westchester County, the Hudson Valley, and Upstate New York — wherever the NY Estates, Powers and Trusts Law (EPTL) governs your plan.
The Most Costly Trust Mistakes We See — and Why They Happen
1. Choosing a Revocable Trust Thinking It Saves Estate Tax
A revocable living trust is one of the most useful tools in NY estate planning: it avoids probate, keeps your affairs private, and allows an appointed successor trustee to manage assets during incapacity. What it does not do is reduce your taxable estate. Assets held in a revocable trust remain in your estate under EPTL Article 7 — full stop. Clients who believe they have “protected” a $9 million estate through a revocable trust may face a shock at the New York tax cliff.
2. Ignoring New York’s Estate-Tax Cliff
| 2026 NY Exclusion | Cliff Threshold | Consequence Above the Cliff |
|---|---|---|
| $7,350,000 | $7,717,500 (105%) | Entire NY exemption is lost — tax applies to dollar one |
Estates between $7.35 M and $7.72 M sit in the most dangerous zone in New York tax law. An irrevocable trust — structured as a Spousal Lifetime Access Trust, an Irrevocable Life Insurance Trust, or another vehicle — is one of the primary tools for reducing the taxable estate below the cliff. Once an irrevocable trust is executed it generally cannot be amended, which is why precise drafting matters from day one.
3. Skipping a Special Needs Trust for a Disabled Beneficiary
Leaving assets directly to a beneficiary who receives Medicaid or SSI can terminate those benefits immediately. Under EPTL § 7-1.12, a properly drafted Supplemental Needs Trust (SNT) preserves means-tested benefits while still allowing you to provide for your loved one.
4. Selecting the Wrong Trustee — or Giving Them No Guidance
Under EPTL Article 11-A, every trustee is held to the prudent-investor standard and carries a duty of loyalty and a duty to account to beneficiaries. Naming a trustee without confirming they understand these obligations — or structuring a trust without clear distribution standards — is one of the most common causes of family conflict and trust administration litigation we see.
5. Treating a Will as a Complete Plan
A will must be admitted to probate in New York’s Surrogate’s Court, becoming a public record. A trust is private and bypasses that process entirely. For many clients, the right answer is a coordinated trust vs. will strategy — not one or the other. Our trusts overview explains when each instrument serves you best.
Work With an Attorney Who Knows Where the Traps Are
Russel Morgan, Esq. has guided New York families through estate planning across every region of the state. If your current plan was drafted more than three years ago — or was never reviewed after a major life change — schedule a consultation before the next mistake has a chance to cost you.
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Further reading from Morgan Legal Group: New York estate planning.