Estate Planning in New York City for Parents of Children with Special Needs

Raising a child with a disability in New York City changes how you think about the future. The ordinary estate plan—a simple will leaving everything to your kids—can accidentally disqualify a child from Supplemental Security Income (SSI) and Medicaid. Thoughtful planning under New York law protects your child’s benefits while still leaving resources to enrich their life.

Why generic plans fail special-needs families

Means-tested programs cap a recipient’s countable assets. If your son or daughter inherits money outright—or even receives it through a well-meaning grandparent’s will—that inheritance can push them over the limit and interrupt the supports they depend on in the five boroughs. A New York supplemental needs trust under EPTL 7-1.12 lets you hold assets for your child without those assets counting against them.

The core documents NY parents need

Most families we describe on this site build their plan around a few instruments working together:

• A will that names a guardian for minor children and funnels any bequest to your child into a trust rather than to them directly (EPTL 3-2.1 sets the signing rules).
• A revocable living trust to keep assets out of Surrogate’s Court probate and provide for management if you become incapacitated (EPTL Article 7).
• A supplemental needs trust so an inheritance supplements—rather than replaces—government benefits.
• A durable power of attorney and health care proxy for yourself, and a plan for decision-making once your child turns 18.

Planning for the day your child becomes an adult

In New York, a child reaches legal adulthood at 18 even if they cannot manage their own finances or medical care. Parents are no longer the automatic decision-makers. Families plan ahead for this transition—whether through supported decision-making, a power of attorney, a health care proxy, or in some cases a guardianship proceeding—so there is no gap in care.

New York estate tax and your bequest

New York has its own estate tax separate from the federal one. For 2026 the basic exclusion amount is $7,350,000. New York uses a “cliff”: estates exceeding 105% of the exclusion ($7,717,500) lose the exclusion entirely and are taxed on the whole estate. For families with significant assets, the structure of a special-needs plan can interact with this cliff, which is one reason to coordinate planning carefully.

Talk with a New York attorney

The pages on this site explain how each tool works under New York law for families raising children with special needs. They are educational only and not legal advice for your situation. Because benefits rules, trust drafting, and the estate tax cliff are unforgiving, review your plan with a licensed New York estate planning attorney before you sign anything.