Tuesday, March 4, 2014
As I have previously discussed, New York Governor Cuomo’s Budget Bill proposes significant changes to the state’s tax laws. The changes would have a substantial impact on trusts and gifts made in New York, and alter the estate planning considerations when a New York resident beneficiary or testator is involved. These changes include:
- Including gifts made during life in the decedents estate for calculating estate tax
- Increasing the exclusion amount to $5.25 million and decreasing the top estate tax from 16% to 10%
- Repealing the generation skipping transfer tax
- Taxing nonresident trusts
- Taxing incomplete gift non-grantor trusts the same as grantor trusts
See Milbank’s Trusts and Estates Group, New York Proposes Changes to the Application of Its Estate and GST Taxes and the Income Taxation of Trusts, Mondaq, Feb. 25, 2014.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.