When most New Yorkers hear the phrase “estate planning,” they think about mortality. But as an experienced estate planning attorney, I view it differently. Estate planning is not about death; it is about financial soundness while you are alive and the efficient transfer of wealth when you pass.
I am Russel Morgan, and at Morgan Legal Group, we have guided over 1,000 families through the complex legal and financial landscape of New York. We have seen firsthand that a “standard” plan often leaks money—losing 3% to 6% of the estate to probate fees, exposing assets to creditors, or failing to mitigate the aggressive New York estate tax.
In 2025, with the 2026 Federal Estate Tax Sunset looming and market volatility increasing, you need more than a simple Will. You need a strategy. This comprehensive checklist is designed to help you build a financially sound estate plan that acts as a fortress around your hard-earned assets.
Phase 1: The Foundation (Structuring for Efficiency)
A financially sound plan begins with the right structure. In New York, the “default” structure (a Will) is often the most expensive option due to court costs.
1. The Revocable Living Trust (The “Probate Killer”)
If you own real estate in New York (especially in the five boroughs or Long Island), relying on a Will guarantees that your estate will go through probate.
The Financial Impact: Probate involves court filing fees and statutory Executor commissions that can total 5% or more of your gross estate. On a $2 million home, that is $100,000 lost to administrative friction.
The Checklist Action: Create a Revocable Living Trust. By transferring your assets into the trust during your lifetime, you bypass probate entirely, saving your heirs tens of thousands of dollars and months of delay.
2. The Pour-Over Will (The Safety Net)
Even with a Trust, you need a Will.
The Checklist Action: Draft a “Pour-Over Will.” This document acts as a safety net to catch any assets you forgot to fund into your trust and “pours” them into the trust at your death. It is also the *only* place to nominate a Guardian for minor children.
Phase 2: Incapacity Planning (Protecting You While Alive)
A plan is not financially sound if it falls apart when you get sick. If you have a stroke or develop dementia, who pays the mortgage? Who manages the investment portfolio?
3. The “Enhanced” Durable Power of Attorney
The Checklist Action: Do not use a generic form. You need a New York statutory Power of Attorney (POA) with the “Modifications” section (formerly the Statutory Gifts Rider) executed.
Why It Matters: Without the specific power to make gifts or create trusts, your agent cannot engage in Medicaid planning if you need long-term care. A standard POA could leave your life savings exposed to a $20,000/month nursing home bill.
4. The Health Care Proxy & Living Will
The Checklist Action: Appoint an agent to make medical decisions and state your end-of-life wishes.
The Financial Angle: While primarily medical, avoiding unwanted medical interventions (like indefinite life support against your wishes) can preserve estate assets for your family rather than the hospital system.
Phase 3: Asset Protection (Shielding the Wealth)
For many New Yorkers, the biggest threat to their estate is not the stock market, but the cost of long-term care.
5. The Medicaid Asset Protection Trust (MAPT)
The Checklist Action: If you are over 65 and own a home, consider an Irrevocable MAPT.
The Strategy: By moving your home into this trust 5 years before you need nursing home care (or 30 months for home care), you protect 100% of its value. Medicaid pays for your care, and your heirs inherit the house debt-free.
Phase 4: Tax Mitigation (The 2026 Strategy)
New York has one of the lowest estate tax exemptions in the country (“The Cliff”), and the federal exemption is set to drop by roughly 50% on January 1, 2026.
6. Review Your Net Worth Against the “Cliff”
The Checklist Action: Calculate your total net worth (including life insurance death benefits).
The Danger: If you exceed the NY exemption (approx. $6.94 million) by more than 5%, you fall off the “cliff” and are taxed on the entire estate, not just the overage.
The Solution: If you are near this number, we must implement “Santa Clause” provisions or Credit Shelter Trusts to cap your NY estate.
7. Spousal Lifetime Access Trusts (SLATs)
The Checklist Action: For high-net-worth couples, consider locking in the current high federal exemption (~$27M per couple) before it sunsets in 2026 by using a SLAT. This moves assets out of your taxable estate while keeping them accessible to your spouse.
Phase 5: The “Hidden” Estate (Beneficiary Designations)
Your Will and Trust do not control your IRAs, 401(k)s, or Life Insurance. These pass by contract.
8. The Beneficiary Audit
The Checklist Action: Request “Change of Beneficiary” forms for all retirement accounts and insurance policies.
Common Mistake: Leaving an ex-spouse as a beneficiary. This overrides your Will. Ensure your primary and contingent beneficiaries align with your Trust structure.
Phase 6: Digital & Personal Legacy
9. Digital Asset Authorization
The Checklist Action: Ensure your documents reference New York EPTL Article 13-A. This gives your executor legal authority to access your digital life (crypto, email, photos). Without it, your digital wealth could vanish.
10. The Letter of Instruction
The Checklist Action: Write a non-legal letter detailing where the keys are, the alarm codes, the funeral wishes, and the location of the “crypto seed phrases.” This saves your family immense stress.
Conclusion: A Plan That Pays for Itself
A financially sound estate plan is an investment. The cost of setting up a Revocable Trust or a Medicaid Trust is a fraction of the cost of Probate fees or a single year in a nursing home.
Do not wait for a crisis to check these boxes. Schedule a consultation with the expert team at Morgan Legal Group today. Let us review your assets and build a plan that secures your financial future.
For more on calculating your potential estate tax liability, review the New York State Department of Taxation and Finance Estate Tax guidelines.
