Wills, Trusts & Estates Prof Blog

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

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Thursday, July 17, 2014

New York Estate Tax Changes Fall Short of Goal

TaxAs I have previously discussed, New York enacted new estate tax laws that increased the state estate tax exemption. The state was motivated by a desire to prevent wealthy residents from moving to other states with lower estate tax. However the increased exemptions, which will reach an estimated $6 million by 2019, do not benefit estates that are worth more than 105% of the exemption amount, as the exemption will no longer apply to those wealthier estates.

There is more bad news for wealthy estates in New York. The new estate tax does not adopt the concept of portability, and gifts made within three years before death that are more than the $14,000 annual exclusion will be taxed under a newly created state estate tax.

See Robert W. Cockren et al., New York State Reduces its Estate Tax for Some, Increases it for Others, Mondaq, July 14, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.

http://lawprofessors.typepad.com/trusts_estates_prof/2014/07/new-york-estate-tax-changes-fall-short-of-goal.html

Estate Planning - Generally, Estate Tax, New Legislation | Permalink

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