Latest News
Firm news and client alerts that may be beneficial
New York State Estate Tax Alert
New York State Estate Tax Alert
By: John S. King
Effective April 1, 2016 the New York State “applicable exclusion amount” (the amount of one’s taxable estate tax that can pass free of NYS estate tax) increased to $4,187,500 – an increase of $1,062,500 from the previous amount.
The applicable exclusion amount will increase again on April 1, 2017 to $5,250,000. On January 1, 2019 another adjustment will be made to the NYS applicable exclusion amount so that it equals the Federal Estate Tax exemption which is currently $5,450,000 and is indexed for inflation. Thereafter, the NYS applicable exclusion amount will be adjusted annually so that it continues to equal the Federal amount.
Even though the estate tax exemption amounts for Federal and NYS purposes will eventually be the same, there remain a number of significant differences between the application of the two tax regimens which continue to require complex estate and tax planning in order to minimize and defer the impact of such taxes.
If you have any questions about this tax law change or any estate planning issues, please feel free to contact the attorney you typically work with in our office or any of the members of our Estate Planning and Wealth Preservation Practice Group.
