A 2025 Guide to Estate Planning for Upper East Side Residents (10065)

For residents of the Upper East Side, estate planning is not a generic task—it is a specialized discipline. In the 10065 zip code, “planning” is not just about writing a will. It is about defending a lifetime of accumulated wealth, complex assets, and family values from a unique and formidable set of threats: New York’s “double” estate tax, the complexities of co-op transfers, and the imminent 2026 federal “tax cliff.”

As a New York attorney with many years of experience, my firm has handled over 1,000 successful cases, many for clients right here on the Upper East Side. I am Russel Morgan, and my team at Morgan Legal Group understands that your concerns are specific. You are not just protecting a “house”; you are protecting a multi-million dollar co-op on Park Avenue, a diversified investment portfolio, and perhaps a valuable art collection.

A “simple” plan—the kind you get from an online form or a general practitioner—is not just inadequate; it is a multi-million dollar catastrophe waiting to happen. This 2025 guide is written specifically for you. It will expose the 10065-specific dangers and provide the “gold standard” solutions you need to build a true fortress around your legacy.

Estate Planning for 10065: The High-Stakes Risks

Why is planning in the 10065 zip code different? Because your assets are unique and your tax exposure is the highest in the nation. Your plan must defend against three primary enemies.

Enemy #1: The 2026 Federal Estate Tax “Sunset” (The Tax Cliff)

This is the most urgent threat to your legacy. The 2017 Tax Cuts and Jobs Act (TCJA) temporarily doubled the federal estate tax exemption. In 2025, this exemption is a historic high of $13.61 million per person. This has kept the 40% federal tax at bay for most families.

On January 1, 2026, this law “sunsets.” The exemption will be cut in half, dropping to a projected $7 million. For a couple with a $5M co-op, $8M in investments, and $2M in art, this is a disaster. An estate that owes $0 in 2025 could owe over $1.2 million in 2026. 2025 is your last “use it or lose it” window to act.

Enemy #2: The New York “Double Whammy” (The NYS Cliff & No Portability)

Even if you are under the federal limit, New York State has its *own* estate tax.

• The NYS Exemption: A mere $6.94 million.
• The “Cliff”: If your estate is just 105% over this limit (approx. $7.28M), you don’t pay tax on the overage. You lose the entire exemption and pay tax from dollar one. A $7.3M estate will pay a staggering $684,000 tax bill.
• No Portability: Unlike the federal system, NY does not allow a surviving spouse to “port” the deceased spouse’s exemption. This is a trap that snares thousands, as a “simple” will leaving everything to a spouse wastes the first $6.94M exemption.

Enemy #3: The Probate Nightmare (The New York County Surrogate’s Court)

If your plan relies on a Will alone, your entire estate will be dragged into the New York County Surrogate’s Court. Based on our 1,000+ cases, we know this is a disaster.

• It’s Public: Your $10M co-op, your art collection, your beneficiaries—all become public record.
• It’s Slow: Probate in New York City can take 1-2 years. Your assets are frozen.
• It’s Expensive: Executor commissions and legal fees can cost your family 3-7% of your estate’s value.

The 10065 Asset Protection Playbook: Advanced Solutions

A “simple” plan fails these tests. Residents of the Upper East Side require sophisticated, customized strategies. Here is the playbook we use to protect our high-net-worth clients.

The Problem: Your High-Value Co-op or Condo

A co-op is not “real property.” It is shares in a corporation. This creates unique challenges, especially with a co-op board. Many online or general practice attorneys do not know how to transfer a co-op into a trust. This is a rookie mistake that can invalidate your entire plan. Our firm handles complex co-op transfers every day.

The Solution: A Revocable Living Trust + Co-Op Expertise

A Revocable Living Trust is the “gold standard” to avoid probate. We transfer your assets, *including your co-op shares*, into the trust. This requires negotiating with the co-op board and using a specialized “Aztech Recognition Agreement.”

• It Avoids Probate: The trust owns the co-op, so there is no court. Your heirs get access privately and immediately.
• It Preserves the “Step-Up”: Your heirs inherit the co-op at its date-of-death value, wiping out all capital gains tax.
• It Provides Incapacity Protection: If you are incapacitated, your chosen trustee steps in, avoiding a humiliating guardianship.

The Problem: The 2026 Federal Tax Cliff (Estates $10M+)

You cannot use a Revocable Trust to save on estate taxes. For that, you need advanced, 2025-specific tools.

Solution 1: The Spousal Lifetime Access Trust (SLAT)

This is the #1 strategy for married couples in 2025.

1. You (Spouse A) make a large gift (e.g., $10M) to an *Irrevocable Trust*. This uses your high $13.61M exemption before it’s lost.
2. The beneficiary of this trust is your spouse (Spouse B).
3. The “Magic”: The $10M (and all its future growth) is out of your estate, safe from the 40% tax. But, your spouse can still receive distributions. The money is not “gone.” It is protected for your family’s benefit.

Solution 2: The Irrevocable Life Insurance Trust (ILIT)

That $5M life insurance policy you own? It is not “tax-free.” It is 100% part of your taxable estate. It is a time bomb. An ILIT is a trust created to own that policy. You make gifts to the trust, the trust pays the premiums. When you pass, the $5M death benefit is paid *to the trust*—100% free from all estate taxes. This tax-free cash can then be used to pay any NYS taxes, saving your children from a fire-sale of your art or real estate.

The Problem: The “Middle-Class” Crisis for Your Parents (Medicaid)

Many of our 10065 clients are also managing the care of their aging parents. They are shocked to learn that Medicare does not pay for long-term care, which costs $20,000+ per month. Medicaid is the only solution, but New York is implementing a 30-month “look-back” for home care.

The Solution: The Medicaid Asset Protection Trust (MAPT)

This is the *only* tool to protect a home from long-term care costs. You (or your parents) transfer the home into this irrevocable trust. This starts the “look-back” clock (5 years for nursing home, 2.5 for home care). After the clock runs out, the house is 100% protected. It is the only way to shield a legacy from being consumed by long-term care costs.

The Core Documents Every 10065 Resident Must Have

Regardless of your wealth, your plan is dangerously incomplete without these “incapacity” documents. A will and trust only work *after* you die. These work *while you are alive*. Without them, your family is powerless.

1. Durable Power of Attorney: This is the most important document. It appoints a financial “agent” to pay your co-op maintenance, manage investments, and file taxes if you are incapacitated. Without it, your family must go to court for a guardianship.
2. Health Care Proxy: This appoints a medical “agent” to make decisions for you. Without it, your family is locked out by HIPAA, and doctors will not speak to them.
3. Living Will: This states your wishes for end-of-life care, guiding your agent’s hand and removing the burden from them.

As our 900+ positive reviews often state, the peace of mind from completing these documents is immediate and profound.

Case Study: The Upper East Side Co-op Disaster

We’ve seen this exact scenario from our 1,000+ cases.

• The Client: A widower in 10065. He has a $4M co-op and $5M in investments. His only “plan” is a Will leaving everything to his two children.
• The Disaster: He passes away in 2026.
  1. Probate: The $9M estate is dragged into New York County Surrogate’s Court. It is frozen for 18 months.
  2. The Tax Bill: His $9M estate is over the $6.94M NYS “cliff.” The estate owes $900,000+ in NYS tax. It is also $2M over the new federal limit, owing $800,000 in federal tax. Total Tax: $1.7 Million.
  3. The Result: The estate is illiquid. The children are forced to sell the $4M co-op in a court-supervised fire-sale to pay the $1.7M in taxes and $300k+ in probate fees. The family legacy is destroyed.
• The Morgan Legal Group Solution (If Done in 2025): We would have created a Revocable Trust to avoid probate. We would have used a SLAT or GRAT in 2025 to move $4M out of his estate using the high exemption. His $5M estate would be below *both* the NYS and federal limits. Total Tax Bill: $0. Total Savings: $1.7 Million.

Frequently Asked Questions for 10065 Residents

Q1: My main asset is my co-op. Can I even put that in a trust?

Yes. This is a key specialty of our firm. It is a complex process that most lawyers do not understand. It requires board approval and special agreements, but it is 100% possible and 100% necessary to avoid probate.

Q2: I have a Revocable Trust. Am I protected from the 2026 tax cliff?

NO. This is a critical and dangerous misunderstanding. A Revocable Trust is “invisible” to the IRS. It does nothing to save on estate taxes. You need *Irrevocable* Trusts (like SLATs) to address the tax cliff. Schedule a consultation with us immediately if this is your plan.

Q3: What if Congress stops the 2026 sunset?

This is a multi-million dollar gamble. As an expert attorney, I must advise you to plan based on the law as it is *written*. The law as written says the exemption is being cut in half. Relying on a gridlocked Congress is not an estate plan. The IRS has even issued “anti-clawback” rules, giving you a green light to plan now without fear of future penalties.

Q4: My children are responsible. Can’t I just add them to my deed/co-op shares?

ABSOLUTELY NOT. This is a catastrophic mistake.

1. You expose your home to 100% of their creditors, lawsuits, and divorces.
2. You lose all control. You cannot sell or refinance without their signature.
3. You create a massive capital gains tax bill. By “gifting” it, your children get your old “cost basis.” When they inherit from a trust, they get a “step-up in basis” and pay $0 in tax.

Your Upper East Side Legacy Demands an Expert Plan

You did not build a multi-million dollar legacy by accident. Do not lose it by using a generic, “simple” plan. The 2025-2026 landscape is a minefield of tax cliffs, look-backs, and probate traps. Your plan needs to be as sophisticated as your assets.

We invite you to schedule a confidential consultation with our expert team. We have the experience—over 1,000 successful cases—and the trust of the community, with over 900 positive reviews. You can see one of our Google profiles here. Let us build the fortress your legacy deserves.

For more information on the federal estate tax, you can review the IRS guidelines on their Estate Tax page.

The post A 2025 Guide to Estate Planning for Upper East Side Residents (10065) appeared first on Morgan Legal Group PC.