CLIENT ALERT
CHANGES TO NEW YORK GIFT & ESTATE TAX LAWS
New York State increased its estate tax exemption to $2,062,500 for New York residents dying between April 1, 2014 and April 1, 2015.
The exemption will continue to increase as follows:
$3,125,000 on April 1, 2015
$4,187,500 on April 1, 2016; and
$5,250,000 on April 1, 2017
Beginning January 1, 2019, the estate tax exemption will be indexed for inflation with cost of living adjustments. The New York exemption will equal the federal estate tax exemption in 2019.
New York has not adopted “portability,” which would permit a surviving spouse to utilize any estate tax exemption unused by the decedent’s spouse. The top estate tax rate will continue at the 16% rate.
All taxable gifts made with three years of the date of death of a decedent, will be included as part of the New York gross estate. This change in law does not apply to gifts made while the decedent was not a resident of New York State or to gifts made prior to April 1, 2014 or after January 1, 2019.