The Ultimate 2025-2026 Guide to Estate Planning in New York City
If you live in New York City, what does “estate planning” mean to you? For most, it means having a “simple will.” But as a New York estate planning attorney with many years of experience, I must be direct: in 2025, a “simple will” is a catastrophic, multi-million dollar mistake. It is not a plan; it is a ticket to a 2-year nightmare in probate court.
My name is Russel Morgan, and my firm, Morgan Legal Group, has successfully guided over 1,000 families through this complex system. Our experience, backed by 900+ positive online reviews, has shown us that true estate planning is not about a document. It’s about building a fortress. It’s about ensuring your family isn’t stuck in court, doesn’t get a $500,000 tax bill, and doesn’t lose your family home to pay for long-term care.
The “benefits” of planning are not abstract. They are the *only* defense against the two massive financial “time bombs” set to detonate in 2025 and 2026: the imminent 30-month Medicaid “look-back” and the 2026 federal estate tax “sunset.” This is the ultimate guide to what you *actually* need to protect your New York City legacy.
Benefit #1: Avoiding the NYC Probate Nightmare (The Surrogate’s Court Trap)
This is the most overlooked benefit. People assume a Will avoids probate. It does the opposite. A Will *guarantees* your family will be dragged into the New York Surrogate’s Court. Based on our 1,000+ cases, we know this is a disaster.
What is Probate in New York City?
Probate is the public, court-supervised process of validating your will and distributing your assets. In New York City, whether in Brooklyn, Queens, or Manhattan, this means:
- It’s 100% Public: Your will and a full inventory of your assets (your co-op, your accounts) become a public record. This is a goldmine for scammers and nosy relatives.
- It’s Agonizingly Slow: A “simple” probate in NYC can take 1-2 *years*. Your assets are frozen. Your family cannot sell the home or access accounts.
- It’s Shockingly Expensive: Your estate must pay executor commissions (on a $1M estate, this is $34,000) plus thousands in court costs and legal fees.
- It Invites Conflict: The court process *requires* all next-of-kin to be notified, giving any disgruntled relative a formal invitation to contest the will and sue your estate.
The “Gold Standard” Solution: The Revocable Living Trust
A Revocable Living Trust is the cornerstone of a modern plan. It is a private legal entity you create to hold your assets. You control it 100% while you are alive.
The Benefit: When you pass, your “Successor Trustee” (your child) takes over *instantly*.
- NO COURT: You avoid the Surrogate’s Court completely.
- NO DELAYS: Assets are not frozen.
- NO PUBLIC RECORD: Your legacy is 100% private.
This is the *only* way to guarantee your family’s privacy and immediate access to their inheritance.
Benefit #2: Avoiding the Public Nightmare of Guardianship (Incapacity Planning)
What if you don’t die? What if you have a stroke, an accident, or dementia? Your Will does nothing. Your assets are frozen. Your family is powerless.
The “Article 81” Disaster
Without a plan, your family’s *only* option is to file for an Article 81 Guardianship. This is a public, expensive ($20,000+), and humiliating lawsuit where your family must prove to a judge that you are incompetent. The judge—not your family—then decides who controls your life and your money. They may even appoint a stranger.
The Solution: The “Must-Have” Incapacity Documents
A true estate plan protects you *while you are alive* with two key documents:
- The NY Durable Power of Attorney: This appoints a financial “Agent” to pay your bills. Warning: New York has one of the strictest POA forms in the country. A “DIY” or online form *will* be rejected by your bank. Our 1,000+ cases have shown us what works and what fails.
- The Health Care Proxy: This appoints a medical “Agent.” Without it, doctors are bound by HIPAA and cannot even *talk* to your family.
The benefit of these documents is *immediate*. They keep your family in control and out of court.
Benefit #3: Defusing the 2025/2026 Financial “Time Bombs”
This is where an “easy” plan fails and an expert plan saves your legacy. Your plan *must* address these two specific, urgent threats.
Threat 1: The 2025 NY Medicaid “Look-Back” (The Middle-Class Time Bomb)
The Threat: Medicare does not pay for long-term care, which costs $20,000/month. Medicaid *does*, but it’s a poverty program. For years, NY had “no look-back” for home care. That is over. A new 30-month (2.5-year) look-back for home care is being implemented in 2025.
The Mistake: Any “simple” gift—like adding your child to your deed or giving them cash—is now a “transfer” that will disqualify you from care. You will be forced to sell your home to pay your bills.
The Benefit of a Real Plan: The Medicaid Asset Protection Trust (MAPT)
The *only* solution is to create an Irrevocable Trust (MAPT). You transfer your home and co-op into this trust *now*. This starts the 5-year/30-month look-back clock. After the clock runs out, your assets are 100% protected. This is not a “simple” fix, but it is the *only* one that works.
Threat 2: The 2026 Federal Estate Tax “Sunset” (The High-Net-Worth Time Bomb)
The Threat: The federal estate tax exemption ($13.61M) is being cut in half on Jan 1, 2026, to ~$7M.
The NY “Double Whammy”: NY already has its *own* $6.94M “cliff” tax. A $15M estate in NYC that owes $0 in 2025 could owe over $2.3 MILLION in 2026.
The Benefit of a Real Plan: The 2025 “Use It or Lose It” Strategy
2025 is your *last chance* to “use” your high exemption before you “lose” it. We use advanced, irrevocable trusts (like SLATs and ILITs) to make strategic gifts now. This is not something a “simple” plan can do. It is an expert strategy that can save your family millions.
Benefit #4: Avoiding the $500,000 “Simple Mistake” (The Tax Trap)
A “benefit” of a bad plan is a hidden trap. The most common “DIY” mistake is adding a child to a deed to avoid probate.
The Trap: You just triggered a massive capital gains tax. When your child *inherits* a home, they get a “step-up in basis” and pay $0 in tax. When you “gift” it, they get your *old* “cost basis.”
Example:
- You bought your Brooklyn home in 1985 for $200,000. It’s now worth $2.2M.
- The Right Way (Inherit via Trust): Your child inherits at $2.2M, sells at $2.2M. Their Tax Bill: $0.
- The “Simple” Way (Deed): Her basis is your old $200,k. She sells at $2.2M. She has a $2M *profit* and now owes $500,000+ in taxes.
The Benefit of a Real Plan: A Revocable Living Trust avoids probate *and* 100% preserves the “step-up in basis.” Your attorney saves your child half a million dollars.
Benefit #5: Protecting Your Heirs From Themselves
What if your child is a wonderful person but is bad with money? Or what if they are in a difficult marriage? A “simple” plan that gives them a lump-sum inheritance is a disaster. That money can be lost in a divorce, a lawsuit, or a bankruptcy.
The Solution: A Protective Trust
A true trust-based plan does not just *give* money. It *protects* it. We can draft your trust to hold your child’s inheritance in a protected “sub-trust” for their *lifetime*. This means the money is available *for* them, but it is not *owned* by them. It is shielded from their spouses, creditors, and any poor decisions. This is the ultimate gift of financial security.
Benefit #6: Coordinating Your “Hidden” Estate Plan (IRAs/401ks)
Your “estate plan” is not just your will or trust. It is also your *beneficiary designation forms*. Your IRA, 401(k), and life insurance are controlled by these forms, and they override your will.
The Mistake: In our 1,000+ cases, we’ve seen this tragedy: A man’s will leaves everything to his new wife. But his $2M IRA still lists his *ex-wife* as the beneficiary. The ex-wife gets the $2M. The will is useless.
The Benefit of a Real Plan: A true attorney, like Russel Morgan, doesn’t just draft a document. We conduct a full “asset review” to ensure your IRA, 401(k), and life insurance are all perfectly coordinated with your trust, especially with the new, complex SECURE Act 10-Year Rule.
Conclusion: The True Benefit is Peace of Mind
The “benefits” of estate planning are not abstract. They are the answers to the “what ifs” that keep you up at night.
- “What if I’m incapacitated?” A Power of Attorney avoids guardianship.
- “What if my family has to go to court?” A Trust avoids probate.
- “What if my kids lose their inheritance?” A Trust protects it.
- “What if I need long-term care?” A MAPT protects your home.
- “What if the tax laws change?” An advanced plan saves you millions.
As our 900+ positive reviews (seen here on Google) show, our clients sleep better at night. They know they don’t have a “simple” piece of paper; they have a comprehensive fortress built by a firm with many years of experience.
Do not overlook these benefits. Schedule a consultation with Morgan Legal Group today and let us build your fortress.
For more information on New York’s probate process, you can visit the NY Courts Surrogate’s Court official website.
