Estate Planning Essentials: Wills, Trusts, and More

Estate planning is one of the most important things you can do for yourself and your family — yet it is consistently one of the most postponed. Many people assume estate planning is only for the wealthy or the elderly. The truth is that anyone with assets, dependents, or wishes about their healthcare has an estate plan to create.

Without a plan, New York state law decides who gets your assets, who raises your children, and who makes medical decisions on your behalf. That may not align with what you want.

What Is Estate Planning?

Estate planning is the process of arranging for the management and distribution of your assets during your lifetime and after death. A comprehensive estate plan typically includes:

A Last Will and Testament
One or more Trusts (depending on your needs)
A Durable Power of Attorney
A Healthcare Proxy
A Living Will / Advance Directive
Beneficiary designations on financial accounts and insurance policies

The Last Will and Testament

A will is the foundational document of most estate plans. It allows you to:

Name beneficiaries who will receive your assets
Designate an executor (called a “Personal Representative” in New York) to administer your estate
Name a guardian for minor children — arguably the most important function of a will for parents
Specify any specific bequests (particular items to particular people)
Express your wishes regarding burial or cremation

What Happens Without a Will in New York?

If you die intestate (without a will), New York’s intestacy laws govern distribution of your estate:

Survivors	Who Inherits
Spouse only	Entire estate to spouse
Children only	Equally among children
Spouse + children	First $50,000 + half the rest to spouse; remainder split among children
No spouse or children	Parents, then siblings, then extended family

This formula rarely matches what most people actually want — especially in blended families or non-traditional relationships.

Will Requirements in New York

To be valid in New York, a will must be:

In writing (handwritten or typed)
Signed at the end by the testator (the person making the will)
Witnessed by two witnesses who sign in the presence of the testator and each other
The testator must be 18 or older and of “sound mind”

A will that does not meet these requirements may be challenged and invalidated.

Trusts: Beyond the Will

A trust is a legal arrangement where one party (the trustee) holds assets for the benefit of another (the beneficiary). Trusts can be extremely powerful planning tools.

Revocable Living Trust

A revocable living trust is created during your lifetime and can be changed or revoked at any time. Key benefits include:

Avoiding probate — assets held in the trust pass directly to beneficiaries without going through court
Privacy — unlike a will, a trust is not a public document
Continuity — a successor trustee can manage assets immediately if you become incapacitated, without court intervention
Multi-state property — avoids probate in multiple states if you own real estate in more than one state

Irrevocable Trust

Once established, an irrevocable trust generally cannot be modified. However, it offers significant advantages:

Assets removed from your taxable estate (important for large estates)
Medicaid planning — assets transferred to an irrevocable trust may be protected from Medicaid spend-down requirements (subject to a five-year lookback period)
Asset protection from future creditors in certain structures

Special Needs Trust

If you have a family member with a disability who receives government benefits, a Special Needs Trust allows you to leave them assets without disqualifying them from Medicaid or Supplemental Security Income (SSI).

Testamentary Trust

A trust created within a will that takes effect upon death. Commonly used to manage assets for minor children until they reach a specified age.

Powers of Attorney and Healthcare Documents

Estate planning is not only about what happens after death. It is equally important to plan for incapacity — the possibility that you may be alive but unable to make decisions.

Durable Power of Attorney

A Durable Power of Attorney (DPOA) designates a trusted person (your “agent”) to manage your financial affairs if you become incapacitated. Without one, your family may need to go to court for a guardianship proceeding — an expensive and time-consuming process.

“We have seen families spend thousands of dollars and months in court because a parent became incapacitated without a power of attorney in place. It is entirely preventable.”

New York law requires a specific statutory form for POAs, with witnesses and sometimes acknowledgment before a notary. An improperly executed POA may not be accepted by banks and financial institutions.

Healthcare Proxy

A Healthcare Proxy designates someone to make medical decisions on your behalf if you are unable to do so. This is separate from a financial POA and is one of the most important documents a person can have.

Living Will / Advance Directive

A living will expresses your wishes about end-of-life medical treatment — whether you want life-sustaining treatment, artificial nutrition, or other interventions if you are in a terminal condition or permanent unconscious state.

Beneficiary Designations: The Often-Overlooked Element

Assets like retirement accounts (IRA, 401k), life insurance policies, and certain bank accounts pass directly to named beneficiaries — outside of your will entirely. This means:

An outdated beneficiary designation (e.g., a former spouse) will override your will
Assets may go to unintended recipients if no beneficiary is named
These designations should be reviewed every few years and after major life events

New York Estate Taxes

New York has its own estate tax separate from the federal estate tax:

The New York estate tax exemption for 2026 is approximately $7.16 million
Estates just over the threshold face a “cliff” — the entire estate (not just the excess) may be taxed at rates up to 16%
Proper planning — including the use of trusts and lifetime gifting — can significantly reduce or eliminate this exposure

When to Update Your Estate Plan

Your estate plan is not a one-time document. Review and update it after:

Marriage or divorce
Birth or adoption of a child
Death of a beneficiary, executor, or trustee
Significant change in assets or financial situation
Moving to a new state
Change in tax laws
Any major life event

Getting Started

Estate planning can feel overwhelming, but you do not need to do everything at once. A basic plan — will, healthcare proxy, and power of attorney — is far better than no plan at all and can often be completed in one or two meetings with an attorney.

Our estate planning team works with clients at every stage of life and every level of wealth. We take the time to understand your family situation, your goals, and your concerns — and we create documents that reflect your actual wishes.