Thoughtful estate planning protects your assets, honors your intentions, and preserves family wealth across generations. Madison Law Firm PLLC guides individuals and families through every aspect of planning and administration.
Every estate plan is different. We take the time to understand your family, your assets, and your intentions before we draft a single document.
An estate plan is not a document you create for yourself — it is a document you create for the people who will deal with your affairs after you are gone or incapacitated. Without a properly executed will, New York's intestacy laws (the rules that govern who inherits when there is no will) will determine how your assets are distributed — which may not align with your intentions and cannot account for individual family circumstances.
Without a Power of Attorney, your family may be unable to manage your finances if you become incapacitated — which can require a costly and time-consuming guardianship proceeding in Surrogate's Court. Without a Health Care Proxy, medical decisions will be made by whoever the hospital designates under the Family Health Care Decisions Act — which may not be the person you would choose.
New York is among the twelve states that still impose a state estate tax, with a 2026 exemption of $7,350,000 per person. More critically, New York's estate tax contains a "cliff" provision: estates exceeding the exemption by more than 5% lose the entire exemption and are taxed on the full value of the estate — at rates of 3.06% to 16%. Strategic planning around this cliff can save families hundreds of thousands of dollars.
"An estate plan doesn't just determine what happens to your money. It determines who makes decisions when you cannot. It is the most important legal document most people will ever sign — and most people wait too long."
A complete estate plan is not a single document — it is a coordinated set of instruments that work together to protect you during your lifetime and your beneficiaries at your death.
A will is the foundational document of any estate plan. Under New York's Estates, Powers and Trusts Law (EPTL § 3-2.1), a valid will must be in writing, signed at the end by the testator, and witnessed by at least two persons. The testator must be at least 18 and of sound mind.
A Power of Attorney (POA) authorizes a person you designate (your "agent") to manage your financial affairs if you are unable to do so. Under New York's General Obligations Law, a durable POA remains effective even if you become incapacitated. New York's form was substantially revised in 2021 — older POAs may not be accepted by financial institutions.
A Health Care Proxy designates a person to make medical decisions on your behalf if you are unable to do so. An Advance Directive (sometimes called a Living Will) records your wishes regarding specific medical interventions, including end-of-life care. Together, these documents ensure your medical wishes are known and followed.
Trusts are among the most powerful tools in estate planning — providing probate avoidance, privacy, asset protection, tax minimization, and the ability to control distributions long after death. Choosing the right trust structure requires careful analysis of your assets, family, and objectives.
A revocable trust is created during the grantor's lifetime and can be amended or revoked at any time. Its primary advantages are probate avoidance (trust assets pass directly to beneficiaries without court supervision), privacy (unlike a will, a trust is not a public document), and the ability to manage assets during incapacity without guardianship. Under EPTL Article 7, the grantor typically serves as trustee during their lifetime, with a successor trustee designated to act at incapacity or death. Assets must be transferred into the trust ("funded") to achieve probate avoidance — an unfunded trust provides no benefit.
Once created, an irrevocable trust generally cannot be modified or revoked. In exchange for surrendering control, the grantor achieves significant advantages: assets removed from the grantor's taxable estate (estate tax minimization), creditor protection (the grantor no longer owns the assets), and potential Medicaid planning benefits. Common irrevocable trust structures include Irrevocable Life Insurance Trusts (ILITs), Qualified Personal Residence Trusts (QPRTs), Spousal Lifetime Access Trusts (SLATs), and Grantor Retained Annuity Trusts (GRATs). Three-year clawback: New York includes gifts made within three years of death in the taxable estate.
New York does not allow portability of the estate tax exemption between spouses — unlike the federal system. A credit shelter trust (also called a bypass trust or family trust) is the mechanism by which a married couple can fully utilize both spouses' New York estate tax exemptions. At the death of the first spouse, assets up to the exemption amount ($7,350,000 in 2026) are directed into the credit shelter trust for the benefit of the surviving spouse, removing those assets from the surviving spouse's taxable estate. Without this planning, the first spouse's exemption is effectively lost. For estates between $7 million and $15 million, credit shelter planning is among the most significant tax-saving strategies available.
A Special Needs Trust (SNT) is designed to provide supplemental financial support to a beneficiary with a disability without disqualifying them from government benefits such as Medicaid and SSI (Supplemental Security Income). Under federal and state law, these benefits are generally means-tested — a direct inheritance would disqualify the beneficiary. An SNT holds assets for the beneficiary's supplemental needs — expenses beyond what government programs cover — without triggering benefit loss. We draft first-party SNTs (funded with the beneficiary's own assets) and third-party SNTs (funded with assets from parents, grandparents, or others).
Charitable trusts serve both philanthropic and tax planning purposes. A Charitable Remainder Trust (CRT) provides an income stream to the grantor or other beneficiaries during life, with the remainder passing to a designated charity — generating a current income tax deduction and removing the asset from the taxable estate. A Charitable Lead Trust (CLT) reverses this structure, paying to charity first and passing the remainder to family members. A charitable savings clause ("Santa Clause") in a will can be used to reduce the taxable estate below New York's cliff threshold, potentially saving hundreds of thousands in estate tax.
A QPRT allows a homeowner to transfer their primary residence or vacation home into an irrevocable trust at a reduced gift tax cost, while retaining the right to live in the home for a fixed term. At the end of the term, ownership passes to the beneficiaries (typically children). The gift is valued at a discount to the home's current fair market value because the grantor retains a term interest. This is particularly effective when real estate values are expected to appreciate — future appreciation occurs outside the taxable estate. If the grantor survives the trust term, the home is successfully transferred out of the estate at a reduced transfer tax cost.
New York is one of only twelve states that imposes its own estate tax, and it has one of the most punitive features of any state estate tax in the country: the "cliff." Understanding and planning around the cliff is one of the most valuable things an estate planning attorney can do for a New York family.
The New York estate tax exemption for deaths in 2026 is $7,350,000. Estates valued at or below this threshold owe no state estate tax. Estates valued between $7,350,001 and $7,717,500 (the "cliff range") are taxed only on the amount above the exemption. But estates valued above $7,717,500 fall off the cliff — the entire exemption is lost and the tax is applied to the full value of the estate.
The result is mathematically counterintuitive: a $7.4 million estate may owe more than $136,000 in New York estate tax, while a $7.35 million estate owes nothing. And a $7.8 million estate owes over $745,000 in estate tax — over 160% of the amount above the threshold — despite being only $450,000 over the exemption.
New York does not allow portability — unlike the federal system, a surviving spouse cannot use a deceased spouse's unused exemption without proper trust planning. For married couples with combined estates over $7.35 million, credit shelter trust planning is essential.
New York has no gift tax. Gifts made more than three years before death reduce the taxable estate without penalty. This creates significant planning opportunities for clients who are healthy and can afford to make lifetime gifts.
| Estate Value | NY Estate Tax (2026) | Notes |
|---|---|---|
| Under $7,350,000 | $0 | Fully exempt — below the exclusion threshold |
| $7,350,001 – $7,717,500 | Graduated 3.06%–16% on amount over threshold | Partial exemption — in the "cliff range" |
| $7,717,501+ | No exemption — full estate taxed | Cliff applies — entire estate subject to tax |
| $7,800,000 example | Over $745,000 | Effective tax rate over 160% of excess above exemption |
The administration of a decedent's estate is conducted exclusively within New York's Surrogate's Court system — a specialized tribunal operating in each of the state's 62 counties. Venue is established in the county of the decedent's domicile at death (SCPA § 205). We guide executors and administrators through every step.
The named executor files a probate petition with Surrogate's Court, submitting the original will and death certificate. The court issues citations to all distributees under SCPA § 1403, requiring them to appear or waive objection. Will examination occurs under EPTL § 3-2.1 — two-witness requirement, testator's signature, sound mind.
Upon admission of the will to probate, the court issues Letters Testamentary — the document that legally authorizes the executor to act on behalf of the estate, marshal assets, open estate bank accounts, communicate with financial institutions, and initiate proceedings to collect estate property.
The executor, guided by EPTL § 11-1.1, must identify and safeguard all estate assets, notify and pay creditors, file required state and federal tax returns (including the estate tax return if required), manage or liquidate assets as directed by the will, and maintain accurate records for the accounting.
The executor files a formal or informal accounting showing all receipts and disbursements during administration. Beneficiaries consent or the court approves the accounting in a judicial settlement proceeding. Upon approval, assets are distributed according to the will's terms and the executor receives a decree of discharge from personal liability.
Estate planning conversations are among the most important we have with clients — and among the most personal. We take the time to understand your family, your assets, and your intentions before we draft anything. Initial consultations are complimentary and conducted in complete confidence.
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