Yes, there is a unique phenomenon in our state called the estate tax exclusion “cliff.” If the value of your estate is more than 5 percent above the exclusion amount, you would not be able to use any exclusion. The entirety of your estate would be subject to taxation.
There is no New York state gift tax, but there is a three-year claw-back provision. If you give large gifts within three years of your death, the value of the gifts would be added to your estate for tax purposes.
There are a number of states in the union that have state-level estate taxes. We practice in New York, and there is an estate tax in our state. The exclusion is approximately half of the federal exclusion, so you can be exposed on the state level even if you are exempt from the other tax. […]
The estate tax was originally enacted in 1916, and this was possible at first. In 1924, the gift tax was enacted, but it was repealed two years later. The gift tax was reenacted in 1932, and it has been in place ever since then. This tax is unified with the estate tax, so the exclusion […]
That is the one exception to the rule. There is an unlimited marital deduction that allows you to leave any amount of property to your spouse free of the estate tax. However, to use this deduction, your spouse must be an American citizen. Speaking of spouses, can a surviving spouse use their deceased spouse’s exclusion? […]
There is an estate tax on the federal level, and it can significantly impact your legacy because it carries a 40 percent maximum rate. That’s the bad news, but the good news is that most people don’t pay the tax. You can use the estate tax exclusion or credit to transfer a certain amount tax-free […]