CALL US TODAY!
Attorneys

SOUND COUNSEL. STRAIGHT TALK. SENSIBLE SOLUTIONS.

Estate Tax in New York

new york estate tax

As you get deeper and deeper into the estate planning process in New York, you begin to recognize opportunities to settle your pending liabilities and avoid any unnecessary expenses against your estate (thus preserving even more assets for your estate planning beneficiaries). Yet one potential expense hangs over your estate that may seem to be impossible to avoid: taxes. Will you owe estate tax in New York?

Both the New York state and federal governments levy an estate tax. Yet, is this something you truly need to worry about? If so, is there anything you could do to limit your estate tax liability? 

State and Federal Estate Tax Exemption

Both the local and national governments offer estate tax exemptions. According to the New York State Department of Taxation and Finance, the local estate tax exemption for 2020 is $5.85 million. Per the Internal Revenue Service, the exemption amount at the national level is $11.58 million (that amount increased to $11.7 million in 2021).

This means that if the total taxable value of your estate comes in under that exemption amount, it will not be subject to estate tax. 

Estate Tax Portability

The federal government also offers the benefit of estate tax portability. This allows people to share tax benefits. Regarding estate taxes, one can claim their deceased spouse’s unused exemption amount. This opens the door for you and your spouse to (through careful estate planning) effectively double the federal amount for one of you to $23.16 million. 

To do this, you would need to plan to leave your entire estate to your spouse (the unlimited marital deduction allows such a transfer free of taxes). This preserves your entire estate tax exemption. Your spouse must then file an estate tax return within nine months of your death, electing portability. 

Contact an Albany Estate Planning Lawyer

For an estate plan review, such as a review of your executor checklist, review for estate planning mistakes, incapacity planning, and more, contact our Albany estate planning attorneys.

Facebook
Twitter
LinkedIn

Helping Injury Victims
Put Their Lives Back Together

Schedule a Consultation

Our attorneys have extensive experience in personal injury law, including car accidents, slip-and-fall accidents, catastrophic injuries and wrongful death. If you have questions about insurance coverage and how to get the financial compensation you need, contact us today to see how we can help.

We have represented many clients on both sides of personal injury and insurance disputes. Let us use our depth of knowledge and experience to help you and your family get the medical care and financial compensation you need and deserve.