Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Wednesday, April 2, 2014

Beware the New York Estate Tax Cliff


On April 1, New York state more than doubled its estate tax exemption amount from $1 million to $2,062,500.  And by 2019, the New York exemption will match the generous federal exemption, projected to be $5.9 million.  This will make planning easier for a lot of people, but there is still one big trap New Yorkers should look out for.

New Yorkers who die with just 5% more than the new exemption will face a “cliff.”  They will be taxed on the full value of their estate, not just the amount over the exemption.  This means the new law could translate into a marginal New York estate tax rate of nearly 164%, as shown in this comment letter from the New York State Society of CPAs.

See Ashlea Ebeling, The New New York Estate Tax Beware a 164% Marginal Rate, Forbes, April 1, 2014.


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