The new laws for the estate tax in New York are going to benefit a lot of state citizens in the upper middle class, many of whom have worked over the course of a lifetime to accumulate their wealth.
Not everyone will benefit from the laws, however, as the financial “cliff” included in the language of the new law may raise the marginal tax rate for some individuals, according to Newsday. On April 1, the state’s estate tax exemption rose to over $2 million, more than doubling the previous exemption of $1 million. Further, the exclusion will continue to rise by $1,062,500 every April 1 until 2017.
Photo courtesy of Florian Giorgio (Unsplash.com)
By 2017, the New York state estate tax exemption will match the federal estate tax exclusion, which currently sits at $5.34 million, the news source explained. At this point, the state’s exemption will be indexed for inflation like the federal exemption.
This new law means that the majority of New York residents will be able to pass on their estates tax-free. Descendants of those that are above the exemption, however, may now face a larger tax bill than they otherwise would have, The Times Beacon Record explained. If the estate is valued between 100 percent and 105 percent of the exclusion amount, the additional sum will be taxed.
This means that an estate of $2,165,625 would only be taxed on the amount in excess of the $2,062,500 exemption this year – $103,125. However, an estate valued at only $1 more would be subject to tax on the entire sum of the estate. Further, the new estate tax law adds a limited three-year look back period for gifts made between April 1, 2014 and Jan. 1, 2019, during which time the value of any taxable gift is added back into the estate.
One of the reasons for the new estate tax law in New York was to make the state more attractive to wealthy seniors, according to Newsday. The wealthiest among them, however, may find better states in which to pass on their estates.
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
