Estate Planning After New York's 2026 EPTL Updates

If you have been putting off updating your estate plan, 2026 is the year to take action. New York estate planning under the EPTL has shifted in meaningful ways, and families across Nassau County, Suffolk County, and the five boroughs need to understand what changed and why it matters for their wills, trusts, and asset transfers. Whether your estate is modest or substantial, the updates that took effect in 2026 affect your planning in ways that deserve a careful review with a qualified New York attorney.

What Is the New York EPTL and Why Do the 2026 Updates Matter?

New York's Estates, Powers and Trusts Law, known as the EPTL, is the core body of law governing how property passes after someone dies, how trusts are created and administered, and what rights surviving family members hold. It sets the rules for everything from valid will execution to trust administration to a surviving spouse's inheritance rights.

The EPTL works alongside the Surrogate's Court Procedure Act (SCPA), which handles the procedural side of probate and estate administration. Together, these statutes cover everything from intestate succession to fiduciary commissions, and getting the details wrong can cost families tens of thousands of dollars or more.

The updates heading into 2026 touch several areas: estate tax thresholds at both the state and federal levels, procedural changes in Surrogate's Court, and new legislation laying the groundwork for electronic wills. Each of these changes directly affects how New York families should structure their plans today.

New York's 2026 Estate Tax Threshold and the "Cliff" Problem

One of the most important numbers in New York estate planning for 2026 is the state estate tax exemption. New York maintains its own estate tax system, separate from federal law. The New York estate tax exemption for 2026 is $7,350,000, an increase of $190,000 from 2025. Unlike the federal system, New York does not have a gift tax.

That sounds like good news, and in some ways it is. But New York's estate tax includes a feature that can blindside families unprepared for it.

Understanding the New York Estate Tax "Cliff"

If the taxable estate exceeds 105% of the basic exclusion amount, which works out to roughly $7,717,500 for 2026, the entire exclusion disappears, and the tax applies to the full estate value, not just the excess. This makes precise estate planning around the threshold critical.

To put that in practical terms: an estate worth $7.15 million owes zero New York estate tax. An estate worth $7.55 million, just $400,000 more, owes roughly $593,000 in New York estate tax. That extra $400,000 in assets triggered over half a million dollars in taxes.

This is not a theoretical risk. Many Long Island and New York City families own real estate that has appreciated considerably over the past decade. A home, a retirement account, and a modest investment portfolio can push an estate into this cliff zone without the family realizing it.

No Portability for Surviving Spouses in New York

Unlike federal law, New York does not let a surviving spouse retain the unused tax-free limit of a spouse who passed away. If you do not use it through specific trust planning, it disappears.

This is a critical distinction that requires careful planning, especially for married couples. The right trust structure can preserve the first spouse's exemption from passing, but that planning has to be in place before it is needed.

How Federal Law Changed for New York Estate Planning in 2026

While New York's state rules remain challenging, the federal landscape shifted significantly heading into 2026. The uncertainty at the start of 2025 as to the federal transfer tax exemption was resolved with the passage of the One Big Beautiful Bill Act, signed into law on July 4, 2025. The increased exemption, established under the 2017 Tax Cuts and Jobs Act, was scheduled to expire at the end of that year, reverting to $5 million per person.

The federal estate and gift tax exemption increased to $15 million per person on January 1, 2026, with annual inflation adjustments beginning in 2027. For married couples, an individual can pass up to $15 million to heirs tax-free, and married couples can shield a combined $30 million from federal estate taxes.

The Federal Gift Tax Exclusion in 2026

The federal annual gift tax exclusion for 2026 is $19,000 per recipient. Gifts within this limit do not count against the lifetime estate tax exemption, making annual gifting one of the simplest strategies for reducing a taxable estate over time.

This is a valuable tool for New York families looking to reduce their exposure to the state estate tax over time. Because gifts made within three years of death are generally pulled back into the decedent's New York taxable estate, by contrast, if a decedent survives a gift by more than three years, the value of that gift is excluded from the New York estate for estate tax purposes. Starting a gifting strategy sooner rather than later gives it time to work.

Wills, Trusts, and What Changed in Surrogate's Court for 2026

Traditional Paper Wills Are Still Required in 2026

New York made headlines when it passed the Electronic Wills Act, but families should carefully review the timeline. In 2025, New York Governor Kathy Hochul signed a bill into law authorizing the use of electronic wills, and in 2026, adopted a chapter amendment to finalize the statutory framework. The law adds a new Part 6 to Article 3 of the New York EPTL, entitled "Electronic Wills." Although the statute is now part of New York law, electronic wills will not be legally effective until December 12, 2027. Until that date, traditional paper wills executed in compliance with existing EPTL requirements remain the method of executing a will in New York.

This means that any will you sign today must still follow the existing rules. A valid New York will must be in writing, signed by the testator at the end, and attested to by at least two witnesses. These witnesses must also sign the will within 30 days of each other, declaring in the testator's presence that the document they sign is indeed the testator's will.

Surrogate's Court Procedural Updates

Procedural changes continued in Surrogate's Court in 2026. Although the Electronic Wills Act has passed the Legislature, it will not take effect until 545 days after being signed by the Governor. As a result, 2026 still requires traditional paper wills for probate. Recent legislation also allows next-of-kin notices to be served by mail, and in some cases by email, helping streamline estate administration.

What Happens If You Die Without a Will in New York

If you pass away without a valid will, the EPTL controls who inherits your assets. When someone dies without a valid will, their estate is distributed according to a statutory hierarchy set out in EPTL 4-1.1. The rules depend entirely on which family members survive the decedent, and the breakdown is not always intuitive.

Unmarried partners receive nothing. A long-term partner of 20 years? No inheritance rights. Everything goes to blood relatives. Stepchildren who were never legally adopted face the same outcome. The state's default rules rarely match a person's actual wishes, which is why having a current, properly executed will is so important.

Trusts in 2026: Why They Remain One of the Most Powerful Planning Tools

Trusts have always been a cornerstone of effective New York estate planning, and 2026 has done nothing to diminish their value. In fact, the gap between New York's state exemption and the federal exemption makes trust planning more important for New York families than for families in many other states.

Placing valuable assets, such as your home, in a trust can help avoid probate issues, save on estate taxes, and protect your home from certain creditors, such as Medicaid, if you require long-term care in your later years.

Married couples with estates that approach or exceed the New York exemption should consider credit shelter trusts, also known as bypass trusts. These structures allow the estate of the first spouse to use its full New York exemption rather than losing it entirely. Without this planning, no portability in favor of surviving spouses is allowed under New York law, meaning that exemption simply disappears.

Trusts also serve families who are not in a taxable estate range. Trusts are estate planning tools that direct the distribution of assets after death. A trust may be used to provide for the distribution of funds to a minor child or a developmentally disabled child. They allow you to set conditions for how and when beneficiaries receive their inheritance, which can be especially important in blended families or when a beneficiary struggles with financial management.

Medicaid Planning and Long-Term Care Considerations for 2026

Not every family is focused on estate taxes. For many New Yorkers, the more pressing concern is what happens if they or a spouse needs nursing home care. Even for estates below the tax thresholds, planning remains critical, particularly for those planning for long-term care paid for by Medicaid. New York residents should monitor updated Medicaid income and asset limits, which affect eligibility for long-term care benefits.

When you apply for Medicaid, the state of New York looks back five years from the date you applied to analyze all gifts you made and all transfers of assets to determine how long you need to wait for Medicaid eligibility. If you transferred gifts or other assets for less than fair market value during the five-year look-back period, your eligibility for Medicaid and its nursing home benefits can be delayed.

Planning ahead with a Medicaid asset protection trust, and doing so well before you anticipate needing care, gives your family the best chance of protecting assets while still qualifying for benefits when the time comes. This is a complex area of law that benefits significantly from personalized legal guidance.

For authoritative information on current Medicaid rules and income limits, you can refer to the New York State Department of Health, and for federal estate tax rules, the IRS Estate and Gift Tax page.

Your Situation Has Changed. Has Your Estate Plan?

These documents are all living documents, meaning that you may make changes to any part of them whenever you wish. Your situation changes as you go through life, and your estate plans should reflect those changes.

If you drafted your estate plan several years ago and have not reviewed it since, it may no longer reflect your wishes, your current assets, or the current state of New York law. An outdated will, a trust that was not properly funded, or a power of attorney that does not meet current requirements can create serious problems for the people you care about most.

Regular review of estate plans remains the best way to ensure compliance with evolving laws and personal goals.

At Kamini Fox, PLLC, we work with individuals and families across Nassau County, Suffolk County, Manhattan, Brooklyn, and Queens to create estate plans that are tailored to their specific needs and goals. Whether you are starting your plan for the first time, updating an existing one, or navigating a complicated family situation, we provide honest answers and practical solutions.

To arrange a consultation, call Kamini Fox, PLLC at 516-493-9920 or email kamini@kfoxlaw.com. You can also visit kfoxlaw.com to learn more about how we can help your family plan with confidence.

Frequently Asked Questions

Q: What is the New York EPTL and how does it affect my estate plan in 2026?

A: New York's Estates, Powers and Trusts Law (EPTL) is the state statute that governs how property passes after death, how trusts operate, and what inheritance rights surviving family members hold. For 2026, the EPTL works alongside updated tax thresholds, new Surrogate's Court procedural rules, and newly enacted electronic wills legislation that takes effect in December 2027. Every New York will, trust, and advance directive must comply with EPTL requirements to be legally valid. An estate planning attorney can review your documents to confirm they meet current standards.

Q: What is the New York estate tax exemption for 2026?

A: The New York estate tax exemption for 2026 is $7,350,000 per individual. Estates valued at or below that amount owe no New York estate tax. However, New York imposes a severe "cliff" provision: if a taxable estate exceeds 105% of the exemption, approximately $7,717,500, the entire exemption disappears, and the tax applies to the full estate value. This can result in a tax bill of hundreds of thousands of dollars for an estate that is only slightly above the threshold. A trust strategy can help married couples and high-asset individuals avoid this outcome.

Q: How does the 2026 federal estate tax exemption change affect New York residents?

A: The federal estate tax exemption increased to $15 million per person starting January 1, 2026, under the One Big Beautiful Bill Act signed into law in July 2025. Married couples can shield up to $30 million from federal estate tax through portability. However, New York residents must still plan around the separate and much lower state exemption of $7,350,000. New York does not allow portability for the surviving spouse at the state level, so trust planning remains essential for New York families with combined estates above that amount.

Q: Can I use a digital or electronic will in New York right now?

A: New York does not yet allow electronic wills for legal purposes in 2026. Governor Hochul signed the Electronic Wills Act into law in December 2025, and a chapter amendment was adopted in 2026, but the law does not take effect until December 12, 2027. Until that date, New York requires a traditional paper will signed by the testator and witnessed by at least two people who each sign within 30 days of each other. Any will signed before December 2027 must follow existing EPTL paper execution requirements to be valid for probate.

Q: What happens to my assets in New York if I die without a will?

A: If you die without a will in New York, the EPTL Section 4-1.1 intestacy rules control who inherits your estate. Your spouse receives the first $50,000 plus one half of the remaining estate if you have children, with children sharing the other half. If you have no spouse or children, assets pass to parents, then siblings, and then more distant relatives in order of priority. Unmarried partners and stepchildren who were never legally adopted receive nothing under intestacy law regardless of the length or closeness of the relationship. A valid will is the only way to ensure your assets go to the people you choose.

Q: Do I need a lawyer for New York estate planning, or can I use an online form?

A: New York estate planning requires strict compliance with the EPTL, and online forms frequently fail to meet those requirements. A will that is improperly witnessed, signed in the wrong order, or missing required language can be invalidated entirely during probate. Beyond the technical requirements, an attorney can identify tax risks, recommend trust strategies, coordinate beneficiary designations, and tailor your plan to your specific family situation. The cost of working with a qualified New York estate planning attorney is far less than the cost of a contested or invalid estate plan for your family.

Q: What is the difference between a will and a trust in New York estate planning?

A: A will in New York directs how your assets are distributed after death but must go through the probate process in Surrogate's Court before it takes effect. A trust holds assets during your lifetime and transfers them to beneficiaries outside of probate, often more quickly and privately. Trusts also allow you to set conditions on distributions, protect assets from Medicaid clawback with proper planning, and preserve the New York estate tax exemption for married couples through credit shelter structures. Many New York families benefit from using both documents together as part of a complete estate plan.