Friday, January 31, 2014
New York Governor Cuomo has proposed a change to his state’s estate and gift tax law that would require all taxable gifts made by New York residents after March 31, 2014, to be included as part of their gross estates.
While there is no gift tax in New York, the amount of lifetime taxable gifts made by New Yorkers may cause their estate tax rate to increase. The net effect of Cuomo’s proposed change would be to cause New Yorkers to pay more estate taxes if taxable gifts are made after March 31, 2014. Gifts made after this date will incur an additional net estate tax of anywhere from 6.5-12%.
Cuomo’s proposal also gradually increases the New York estate tax exclusion from $1 million to the federal $5.25 million over the next five years. The top rate would also be lowered from 16% to 10% in this span.
See John D. Dadakis, New York to Drastically Change “Gift Tax” Rule, Mondaq, Jan. 31, 2014.