Davidov Law Group

Serving families in and around New Hyde Park, NY, for over two decades, we at Davidov Law Group understand the critical role trusts play in securing your future and the well-being of your loved ones. Establishing a trust is a significant step, but the proper administration of that trust is equally vital to ensure your intentions are fully realized, which involves navigating a complex landscape of New York State law and adhering to specific procedures to maintain compliance and maximize efficiency. 

Understanding Your Role as Trustee in New York

At the heart of trust administration is the fiduciary duty that a trustee owes to the beneficiaries, and this duty is more than a guideline; it is a legal obligation. A trustee must always act in the best interest of the beneficiaries, placing their needs above personal gain or convenience. Acting impartially when multiple beneficiaries are involved is just as critical. For example, if a trust benefits both children and grandchildren, the trustee cannot favor one group over another unless the trust document explicitly allows it. A failure to honor fiduciary duties can result in legal disputes and even personal liability for the trustee.

Being named a trustee is a position of significant responsibility. You must manage the trust assets responsibly, avoid conflicts of interest, and treat all beneficiaries fairly according to the terms of the trust document. Failure to uphold these duties can lead to legal challenges and potential personal liability.

Inventorying and Managing Trust Assets

One of the first crucial steps in trust administration is to create a comprehensive inventory of all trust assets, which includes real estate, bank accounts, investment portfolios, personal property, and any other assets held by the trust. Accurate record-keeping is paramount. As a trustee in New York, you are responsible for managing these assets prudently, which may involve making investment decisions, collecting income, paying expenses, and ensuring the assets are properly protected. New York law sets forth guidelines for trustee investments, generally requiring a standard of care that a prudent person would exercise in managing their own property.

Record-keeping is one of the most overlooked but vital aspects of trust administration. Every financial transaction, from investment decisions to routine payments, must be tracked and documented. These records serve as the foundation for annual accountings, which many trusts require by law.

Adhering to New York Legal and Tax Requirements

Trusts do not exist in a vacuum. They are governed by state laws, federal tax rules, and sometimes even court supervision. A trustee must be aware of filing deadlines, reporting obligations, and compliance requirements. Failing to meet these responsibilities can result in penalties for the trust and personal liability for the trustee.

Trust administration in New York is governed by various statutes, including the Estates, Powers and Trusts Law (EPTL). Trustees must be aware of and comply with these regulations, which include understanding the rules regarding trust accountings, which may need to be filed with the Surrogate’s Court under certain circumstances. Additionally, trustees have a responsibility to understand and fulfill the trust’s tax obligations, which can include federal and New York State income taxes, as well as potential estate taxes. Seeking guidance from legal and financial professionals can help ensure all requirements are met accurately and on time.

Communicating with Beneficiaries

Open and transparent communication with trust beneficiaries is a cornerstone of effective trust administration. Trustees should keep beneficiaries reasonably informed about the trust’s assets, management, and distributions. While the frequency and level of detail may vary depending on the terms of the trust and the specific circumstances, regular updates can help foster trust and prevent misunderstandings. In New York, beneficiaries have certain rights to information about the trust, and trustees must be prepared to provide it.

Making Distributions According to the Trust Document

The trust document itself is the primary guide for how the trust should be administered and how distributions should be made to beneficiaries. Trustees must carefully review and understand the terms of the trust, including the specific instructions for when and how distributions should occur. Whether distributions are for education, healthcare, or other purposes, it is crucial to follow the document’s directives precisely. Any deviation could lead to legal challenges from beneficiaries.

The Importance of Professional Guidance

Navigating the complexities of trust administration in New York can be challenging, even for experienced trustees. Seeking guidance from qualified legal and financial professionals is often invaluable. At Davidov Law Group, serving the New Hyde Park community since 2001, our award-winning attorneys and certified financial planners work collaboratively under one roof to provide comprehensive support in all aspects of trust administration. We offer fixed-fee pricing for all our services, ensuring clarity and predictability. For estate administration, our Pay Later program allows you to retain our services without upfront payment of fees until estate funds are available.

We understand that managing a trust involves both legal and financial considerations. Our integrated approach allows us to provide tailored advice on everything from interpreting trust documents and complying with New York State law to managing trust assets and fulfilling tax obligations. We strive to make the process as seamless and efficient as possible, allowing trustees to focus on their responsibilities with confidence.

If you are serving as a trustee in New York, particularly in the New Hyde Park area, and are seeking guidance on best practices in trust administration, we are here to help. Contact Davidov Law Group today at 516-253-1366 for a consultation to discuss your specific needs and how we can assist you in ensuring compliance and efficiency in the administration of your trust.

When it comes to planning for the future, few legal tools are as important as a power of attorney. Life can be unpredictable, and having a trusted person authorized to act on your behalf when you cannot is an essential safeguard. Whether you are preparing for medical decisions, financial matters, or both, choosing the right type of power of attorney can give you peace of mind and protect your interests.

What kind of power do you need to grant, and to whom? We at Davidov Law Group are here to help you navigate these important choices.

What Exactly is a Power of Attorney?

In New York, a Power of Attorney is a legal document that allows you, the “principal,” to authorize another person, the “agent,” to act on your behalf in financial and legal matters. This authorization can be broad or very specific, depending on your needs and wishes. Having a properly executed POA in place ensures that someone you trust can manage your affairs if you become unable to do so yourself.

Different Types of Powers of Attorney in New York

Not all powers of attorney serve the same purpose. Some are designed to last only temporarily, while others continue even if you lose the ability to make decisions yourself. Selecting the wrong type of POA could leave gaps in your planning, which may force your family to go through a lengthy court process to obtain authority over your affairs.

For example, suppose you only grant a standard power of attorney that expires when you become incapacitated. In that case, your agent will lose the ability to help you exactly when you need them most. On the other hand, a durable power of attorney remains valid even if you lose mental capacity. Understanding the distinctions ensures that your wishes are carried out no matter what happens.

General Power of Attorney

A general Power of Attorney grants your agent broad authority to act on your behalf in almost all financial and legal matters, which includes tasks such as managing bank accounts, paying bills, buying or selling property, and filing taxes. While comprehensive, a general POA may not be suitable for everyone, as it gives the agent significant control over your affairs.

Limited or Special Power of Attorney

A limited or special Power of Attorney, on the other hand, grants your agent authority to act only in specific situations or for particular transactions. For example, you might create a limited POA to allow someone to sell your house while you are out of the country, or to manage a specific investment account, and this type of POA can be tailored to your exact needs and has a defined scope and timeframe.

Springing Power of Attorney

A springing Power of Attorney becomes effective only when a specific event occurs, such as your incapacitation, which often requires a doctor’s certification to trigger the agent’s authority. While some people prefer this type of POA because it only grants power when needed, it can sometimes create delays and complexities in obtaining the necessary certifications. New York law has specific requirements for valid springing POAs.

Durable Power of Attorney

Most POAs created in New York are “durable,” meaning they remain valid even if you become incapacitated, which is a critical feature as it ensures that your agent can continue to manage your affairs if you are unable to do so yourself. Without the “durable” designation (or specific language indicating its continuation through incapacity), the POA would automatically terminate upon your incapacitation under New York law.

Key Considerations When Choosing Your POA

Selecting the right type of Power of Attorney involves careful consideration of your individual circumstances and needs. Here are some key factors to think about:

• Scope of Authority: How much power do you want to give your agent? Do you need broad authority or just specific permissions?
• Timing of Effectiveness: Do you want the POA to be effective immediately, or only upon the occurrence of a specific event?
• Your Chosen Agent: Who do you trust implicitly to act in your best interests is perhaps the most important decision.
• Specific Needs: Do you have particular assets or transactions that require specific attention?
• Long-Term Care Planning: If you are concerned about future long-term care expenses, a properly drafted POA can be an important part of your legal and financial plan.

The Role of Legal and Financial Planning

Choosing the right Power of Attorney is often just one piece of a larger estate and financial plan. At Davidov Law Group, located near New Hyde Park, we understand the complexities involved in protecting your future and the well-being of your loved ones. Since 2001, we have been serving our community by providing comprehensive legal and financial planning services. Our award-winning attorneys and Certified Financial Planners (CFPs) work together under one roof to offer you integrated solutions tailored to your unique needs.

We offer flat-fee pricing for all our services, providing you with cost certainty. For those facing the probate or administration process, our Pay Later program allows you to retain our services without upfront payment of our fees until estate funds become available. Furthermore, we offer guaranteed results on Medicaid qualification, aiming to save you money on potential long-term care expenses.

Contact Davidov Law Group Today

Choosing the right Power of Attorney is a crucial step in safeguarding your future. Our helpful team at Davidov Law Group is here to guide you through the process and ensure your documents are properly drafted according to New York law. Contact us today at 516-253-1366 for a consultation to discuss your specific needs and how we can assist you with your legal and financial planning.

Life in New Hyde Park, like anywhere else, moves fast. One day you are single, and the next you are married with a child and a home. These significant milestones are moments of joy, but they also bring a new set of responsibilities. Your life changes, and so should your legal documents. At Davidov Law Group, we often speak with clients who ask, “How should you update your estate plan following major life events?” The answer is simple: your estate plan is not a static document. It is a living guide that needs to evolve with you to protect you and the ones you love.

Marriage: New Beginnings Require New Plans

Marriage is one of the most significant life events that should trigger a review of your estate plan. Under New York law, a surviving spouse has specific rights that can impact your estate even if your will was created before you were married. New York Estates, Powers and Trusts Law (EPTL) § 5-1.1-A grants a surviving spouse a right of election, which allows them to claim a share of your estate regardless of what your will says.

Divorce: Separating Lives and Legal Documents

When a marriage ends, it is just as important to update your estate plan. New York law offers some automatic protections, but these are not comprehensive. Under EPTL § 5-1.4, a final decree of divorce automatically revokes any disposition to your ex-spouse in your will. It also revokes their appointment as an executor, trustee, or guardian.

However, this automatic revocation does not apply to all of your legal documents. It does not typically affect beneficiary designations on life insurance policies, retirement accounts, or other “testamentary substitutes.” If you do not change these designations, your ex-spouse could inherit these assets, even years after the divorce is final, which is a common and avoidable mistake. We guide our clients to change their beneficiary designations and power of attorney documents as soon as the divorce is finalized. You will want to name a new agent for your healthcare proxy and power of attorney, as well as a new executor for your will, to ensure your wishes are followed.

Welcoming a Child: Protecting the Next Generation

The birth or adoption of a child is a monumental event that completely changes your priorities. It also means you have a new person to protect. If you do not have a will, your child will be cared for by a guardian appointed by the court. With a will in place, you can name a guardian you know and trust to raise your child in the event of your death.

New York law treats adopted children the same as biological children for inheritance purposes. EPTL § 2-1.3(a) states that a disposition to “issue” or “children” in a will includes adopted children unless the document says otherwise. Even so, it is always a good practice to update your will to name and include your children specifically, which removes any ambiguity and ensures they are provided for. You will also want to name a custodian for their assets or establish a trust to manage their inheritance until they are old enough to handle it themselves.

Death of a Beneficiary or Executor

While it is difficult to think about, the passing of a beneficiary or executor is a life event that requires a review of your estate plan. New York has an “anti-lapse” statute, EPTL § 3-3.3, which states that if a beneficiary who is your child or sibling dies before you do, their share of your estate will pass to their descendants, but this rule only applies to a small group of people, and the outcome may not be what you intended.

Suppose a different type of beneficiary passes away, such as a friend or a niece. In that case, their share may go to your remaining beneficiaries, or it may pass through intestacy, which can lead to your assets being distributed in ways you never would have chosen. You should update your will or trust to name a new primary beneficiary or to add contingent beneficiaries who will inherit if the primary beneficiary dies. Similarly, if your named executor has passed away, you will want to appoint a new one to ensure the smooth administration of your estate.

Protecting Your Legacy in the Long Term

Updating your estate plan after a major life change is not just a good idea; it is an essential part of responsible legal and financial planning. We know that navigating complex legal concepts can feel overwhelming, but we are here to simplify the process. Our team of award-winning attorneys and certified financial planners works together under one roof, providing a holistic approach to your legal and financial future. We have been serving the New Hyde Park community since 2001, protecting families and providing peace of mind.

We offer flat-fee pricing for all of our services, so you know the cost upfront without any hidden surprises. We also offer our unique Pay Later Probate/Administration fees, which allow you to retain us for probate assistance without having to pay our fee until the estate funds are available. 

Do not wait for an unexpected event to force your hand. If you have questions about how a life event can impact your estate plan, or if you need to create a new one, we are here to help. Contact us today for a consultation at 516-253-1366.

For families in New Hyde Park and across New York, planning for the future often feels like a complex puzzle. You work hard to build your assets, and you want to ensure your loved ones are secure, no matter what tomorrow brings. But for a new generation, traditional estate planning alone might not be enough. The real power comes from seamlessly blending your legal strategies with your financial goals.

Why a Combined Approach Matters in New York

New York State has specific laws governing estates, trusts, and long-term care. Navigating these rules requires a deep understanding of both legal and financial principles. For example, estate taxes at both the federal and state levels can significantly impact what your heirs receive. New York’s estate tax exemption currently differs from the federal exemption, making careful planning essential to avoid unexpected burdens.

Beyond taxes, consider the rising costs of long-term care. Medicaid planning is a critical component for many families looking to protect their assets while ensuring access to necessary medical services. An integrated plan addresses these issues proactively, ensuring your legal documents align perfectly with your financial accounts and investments.

The Pillars of Modern Estate Planning

A last will is the cornerstone of any estate plan. In New York, for a will to be valid, it must be in writing, signed by the testator (the person making the will), and witnessed by at least two people. Without a valid will, your estate will go through intestacy laws, meaning the state decides how your assets are distributed, which might not reflect your wishes.

Your Will: More Than Just a Document

A comprehensive will does more than distribute assets. It can name guardians for minor children, designate an executor to manage your estate, and even establish trusts. When integrating with financial planning, your will ensures your beneficiaries receive assets efficiently, working alongside your financial accounts with designated beneficiaries.

Trusts: Flexibility and Asset Protection

Trusts offer a powerful tool for asset protection, privacy, and control, especially when combined with smart financial strategies. New York law recognizes various types of trusts, each with unique benefits:

• Revocable Living Trusts: You can change or cancel these during your lifetime. They help avoid probate, a potentially lengthy and public court process, allowing for quicker distribution of assets.
• Irrevocable Trusts: Once created, these generally cannot be changed. They are often used for Medicaid planning, shielding assets from long-term care costs, and minimizing estate taxes.
• Special Needs Trusts: These allow you to provide for a loved one with disabilities without jeopardizing their eligibility for government benefits.

Properly funded and managed trusts can work hand-in-hand with your financial investments, directing income or principal to beneficiaries as you intend, all while potentially reducing tax liabilities and protecting assets from creditors.

Powers of Attorney and Healthcare Proxies

Life is unpredictable. What happens if you become unable to manage your own affairs? New York law allows you to appoint trusted individuals to make decisions on your behalf:

• Durable Power of Attorney: This document authorizes someone to handle your financial matters if you become incapacitated, which includes paying bills, managing investments, and making banking decisions.
• Healthcare Proxy: This allows you to designate an agent to make medical decisions for you if you cannot communicate your wishes.
• Living Will: While not unique to New York, this document outlines your preferences for end-of-life medical treatment.

Medicaid Planning: Protecting Your Legacy from Care Costs

One of the most significant concerns for many New Yorkers is the escalating cost of long-term care. Effective Medicaid planning involves strategically structuring your assets, often using irrevocable trusts, to meet eligibility requirements without exhausting your life savings, which is where the complementary forces of legal and financial planning become evident. A carefully crafted financial strategy can protect assets, ensuring your inheritance for loved ones remains intact while securing your care needs.

Integrating Your Legal and Financial Blueprint

Imagine your legal documents as the framework and your financial accounts as the building materials. If the blueprint and materials do not match, the structure will be unstable. An integrated approach means:

• Consistent Beneficiary Designations: Your will and trust documents should align with the beneficiary designations on your life insurance policies, retirement accounts (401k, IRAs), and bank accounts. In New York, beneficiary designations often override what is stated in a will.
• Asset Titling: How you title your assets (e.g., joint tenancy, tenants in common) impacts how they pass to heirs and how they are treated for tax and Medicaid purposes.
• Investment Strategy: Your financial investments should support the goals outlined in your estate plan, whether that is generating income for a surviving spouse, funding a trust for children, or maximizing growth for future generations.
• Regular Review: Life changes – marriages, births, deaths, changes in financial status, or updates to New York law – all necessitate reviewing and adjusting your integrated plan.

Secure Your Family’s Future in New York

At Davidov Law Group, we understand the unique challenges facing families in New Hyde Park and throughout New York. Since 2001, we have helped countless individuals and families integrate their legal and financial planning to build lasting legacies. 

Ready to integrate your legal and financial future? Contact us today at 516-253-1366 for a consultation. Let us help you protect what matters most.

Imagine a future where you or a loved one needs long-term care, perhaps in a nursing home or with in-home assistance here in New Hyde Park. We see families every day in Nassau County grappling with this challenge. They have a will, they have worked hard their whole lives, and they assume everything is taken care of. Then they learn a sobering truth: the assets they built over decades, including their family home, are at risk.

The cost of long-term care in New York is high. It can deplete a lifetime of savings in just a few years. For many, Medicaid becomes the only viable option to cover these expenses. However, qualifying for Medicaid for long-term care is complex. It requires you to have very few assets in your name, which is where a simple will fails. A will only dictates what happens to your assets after you pass away. It offers no protection while you are still alive and needing expensive care.

This is why a living trust, specifically a Medicaid Asset Protection Trust (MAPT), is such a powerful tool. It allows you to take proactive steps today to secure your financial future. When you establish this trust, you move assets out of your name and into a separate legal entity.

The Critical Difference: Trusts and the Medicaid Look-Back Period

To understand how this trust works, you must first understand a core New York Medicaid rule: the look-back period. For those applying for nursing home care, New York Medicaid examines all financial transactions made within the 60 months (five years) immediately before the application date. If you transferred assets for less than fair market value during this period, Medicaid imposes a penalty. This penalty causes a period of ineligibility for benefits.

This rule prevents people from giving away their money right before they need care. A revocable living trust does not protect your assets from this look-back period. Since you still have control, Medicaid considers those assets to be yours.

An irrevocable trust like a MAPT is different. Once you transfer assets into it, they are no longer legally yours. You cannot take them back or change the terms easily; but this loss of control is exactly what makes the trust effective for asset protection.

How a Medicaid Asset Protection Trust Protects Your Home

For many families in our community, the family home is their most valuable asset. But your home is not automatically safe from long-term care costs. While your primary residence may be exempt while you are alive and a spouse lives there, the New York Department of Health can seek reimbursement from your estate after your death through estate recovery.

A MAPT protects the home by removing it from your “probate estate.” Because the trust owns the home, and not you personally, it is generally not subject to Medicaid estate recovery after you pass away. This ensures your legacy stays with your family.

Beyond the Home: Protecting Other Assets

A MAPT can shield more than just real estate. You can transfer a variety of other assets into a properly structured trust to prevent them from being counted for Medicaid eligibility. These assets can include:

• Bank accounts and cash
• Stocks, bonds, and mutual funds
• Vacation properties or other non-primary real estate

As of 2026, New York rules regarding retirement accounts have shifted. IRAs and 401(k)s in payout status are generally considered exempt resources and do not need to be placed in a trust. Our team helps you determine which assets to include to maximize protection without triggering tax issues.

Why Planning Now Is Your Best Strategy

The five-year look-back period is the most significant reason to plan early. Many people wait until a health crisis is imminent. They may be in a hospital in Queens or a rehab center near the Long Island Expressway when they learn about the look-back rule for the first time. At that point, it may be too late to protect assets fully.

Advanced planning gives you peace of mind. It ensures the assets you worked for will support your family’s future. It is a gift you give to yourself and the ones you love.

Serving Our Neighbors in New Hyde Park and Beyond

Since 2001, we have worked with New York families to provide comprehensive legal and financial planning. Our attorneys and financial advisors work together under one roof. We offer flat-fee pricing for our services, so you know the cost upfront without surprises.

Don’t let long-term care costs deplete your life savings. We can help you create a trust tailored to your unique situation. Contact us today to schedule a consultation.

Contact Us

To learn more about protecting your family and financial legacy, contact Davidov Law Group at (516) 294-8114 to schedule your consultation.

Living in or around New Hyde Park, we understand the importance of securing your future and protecting what you’ve worked so hard for. Many people believe that asset protection is only for the wealthy; but that’s a common misconception. In reality, it’s a vital part of comprehensive financial planning for families and individuals at every stage of life. The goal is simple: to create a secure future for you and the ones you love.

When you think about protecting your assets, you are not just thinking about money. You are protecting your home, your savings, your investments, and your peace of mind from unexpected events. These events include things like long-term care expenses, business liabilities, or potential lawsuits. Taking proactive steps today can prevent future financial hardship and ensure your legacy is preserved for your family. This guide walks you through key asset protection strategies specifically for New York residents.

What Are Your Assets Vulnerable To?

In New York, your assets could be at risk from a number of different sources. For business owners, liabilities from business operations can become personal debts if not properly structured. People in certain professions, like doctors or architects, face a higher risk of lawsuits.

Even for those not in high-risk jobs, a sudden medical emergency or the need for long-term care can quickly deplete a lifetime of savings. Without a plan, a court could take your property to satisfy a judgment. Proactive legal structures help prevent these outcomes by making your wealth less accessible to outside claims.

Understanding New York’s Laws

New York’s legal system, particularly in places like Nassau County, has specific rules that govern what is and is not protected. The state’s Civil Practice Law and Rules (CPLR), especially Article 52, outlines how money judgments are enforced against a debtor’s property.

The law allows creditors to go after assets that can be transferred or assigned, unless those assets are specifically exempt. This is why having a plan is so important. It focuses on making sure your assets fall into exempt categories. For instance, New York provides a homestead exemption that protects a certain amount of equity in your primary residence. In Nassau County, this exemption protects up to $204,825 of home equity for an individual (NY CPLR § 5206).

Key Strategies for Asset Protection in NY

A solid asset protection strategy often involves a combination of legal tools. One size does not fit all. The best approach depends on your unique financial situation, family structure, and goals.

Irrevocable Trusts

One of the most powerful tools for asset protection in New York is the irrevocable trust. With an irrevocable trust, you transfer ownership of your assets out of your name and into the trust. Once the assets are in the trust, they are generally no longer considered your property. This means they are protected from future creditors and judgments. While you give up control, the trust’s terms can still provide for your financial needs and those of your family. An irrevocable trust cannot be changed or canceled easily after its creation.

Limited Liability Companies (LLCs)

For New Hyde Park business owners and real estate investors, a Limited Liability Company (LLC) can provide a layer of protection. An LLC is a separate legal entity from its owners, or members. This separation means that if the business gets sued, a creditor can generally only go after the assets of the LLC, not your personal assets like your home or personal bank accounts.

Special Considerations for New Yorkers

Navigating New York’s asset protection landscape also means understanding a few other key areas.

Medicaid Qualification

Long-term care costs can be devastating. Many people turn to Medicaid to cover these expenses. However, Medicaid is a means-tested program with strict limits on income and assets. For 2026, the resource limit for a single individual in New York is $32,532 (NYS Department of Health).

If your assets exceed this amount, you may not qualify for help with nursing home or home care costs. Medicaid planning involves using specific legal tools, like a Medicaid Asset Protection Trust, to shield your assets while meeting eligibility requirements.

Debt Collection Laws

In addition to federal laws, New York has its own regulations to protect consumers from unfair debt collection practices. The Consumer Credit Fairness Act, for example, requires that a debt collector provide specific information about a debt-related lawsuit. It also sets a three-year statute of limitations for most debt collection actions on consumer credit transactions (NY CPLR § 214-i). Knowing your rights under these laws is a crucial part of your overall financial security.

Partnering with Professionals for Peace of Mind

Creating an effective asset protection plan requires a deep understanding of New York state laws and a comprehensive view of your financial life. We believe in providing our clients with a holistic approach to their legal and financial well-being. At Davidov Law Group, our attorneys and financial advisors work together under one roof to provide a seamless experience. We have been protecting the financial futures of New Hyde Park and Long Island families since 2001.

We understand that legal costs can be a concern, so we offer flat-fee pricing for our services. This ensures you know the cost upfront. If you are dealing with the complexities of estate administration, our Pay Later Probate fees allow you to retain our assistance without an upfront payment. Your financial peace of mind is too important to leave to chance.

Schedule a Consultation Today

If you have questions about protecting your assets or want to start creating a personalized plan, contact us today. Let our team help you secure your future and protect the ones you love. Call us at (516) 437-0800 to schedule a meeting. We are here to help you build a secure future.

For families in Garden City and throughout New York, securing a financial legacy is a top priority. When you work hard to build your assets, you want to ensure they pass on according to your wishes. Many people ask whether a trust or a family foundation is the right tool to achieve this goal. While both serve as instruments for managing wealth, they operate under different New York laws and serve distinct purposes.

What Is a Trust in New York?

A trust is a private agreement that creates a legal relationship. One person, the grantor, gives property to a trustee to manage for a beneficiary. In New York, trusts follow the Estates, Powers and Trusts Law (EPTL). This body of law sets the rules for how trusts are created and managed (NY EPTL § 7-1.1).

Revocable Living Trusts

A revocable living trust can be changed or canceled at any time during your lifetime. You can even serve as your own trustee. This type of trust is often used to avoid probate, which is the court process of proving a will. By moving assets into a revocable trust, they are no longer part of your probate estate when you pass away. This allow assets to pass to your beneficiaries privately; but these assets generally remain part of your taxable estate and do not offer creditor protection during your life.

Irrevocable Trusts

An irrevocable trust generally cannot be changed once it is created without the consent of the beneficiaries or a court order. Because you give up control of the assets, they may no longer be considered part of your personal or taxable estate. Some irrevocable trusts offer benefits such as:

• Asset Protection: Certain irrevocable trusts may protect assets from creditors and legal judgments depending on how they are structured.
• Medicaid Planning: A specific type of irrevocable trust, known as a Medicaid Asset Protection Trust (MAPT), can help you qualify for long-term care. New York enforces a five-year look-back period for nursing home care (NYS Department of Health). A properly structured MAPT can help protect assets from being counted in this review.
• Tax Efficiency: Specific irrevocable trusts can reduce your taxable estate, which may help minimize estate taxes for your heirs if your estate exceeds the 2026 New York exemption of $7.35 million.

What Is a Family Foundation in New York?

A family foundation is a separate legal entity, often a corporation, created for charitable purposes. While trusts are private agreements, a family foundation is typically a private foundation rather than a public charity. It is formed under New York Not-for-Profit Corporation Law and must register with the New York State Attorney General’s Charities Bureau.

Oversight by the NYS Attorney General

The New York State Attorney General’s Charities Bureau supervises these organizations to ensure funds are used for charitable purposes. A family foundation must file annual financial reports, such as the CHAR500, which are open to public review. The foundation’s operations and financial activities are transparent and subject to public scrutiny (NY NPCL § 520).

Key Requirements for Foundations

A family foundation must meet specific federal and state requirements. It must operate for charitable purposes and must distribute a minimum percentage of its assets each year (generally 5% of its investment assets) for charitable giving under IRS rules.

Trust vs. Family Foundation: Key Differences at a Glance

Choosing between these tools depends on your goals. Here is a breakdown of their core differences:

• Purpose: A trust is primarily for private wealth management and distribution to individuals. A foundation is for structured, long-term charitable giving.
• Beneficiaries: Trusts can benefit specific people like children or a spouse. Foundations must benefit a charitable class or the public.
• Privacy: Trusts are private documents. Foundations are public entities with filings open for inspection.
• Governing Law: New York trusts are governed by the EPTL. Foundations follow the Not-for-Profit Corporation Law and are overseen by the Charities Bureau.

Making the Right Choice for Your Family

Deciding between a trust and a family foundation requires professional guidance. It involves looking at your assets, your long-term goals, and your wishes for your legacy.

Our team at the Davidov Law Group has been helping families in the New Hyde Park area and beyond plan for their futures since 2001. We understand the legal and financial complexities involved. We offer clear pricing for our services so you always know the cost upfront.

To discuss your situation, please contact us at 516-253-1366 or visit our blog page for more information.