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RECENT CHANGES IN NEW YORK ESTATE TAX LAWS

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Apr 28, 2014

New York State recently made sweeping changes to its estate tax laws.

There has been an increase to the “exclusion amount” for state residents dying on or after April 1, 2014. The new exclusion amount will be $2,062,500. This exclusion amount will also increase annually as follows: April 1, 2015 – $3,125,000; April 1, 2016 – $4,187,500; April 1, 2017 – $5,125,000.

In 2019, specifically January 1, 2019, the NY State exclusion amount will follow the Federal exclusion amount. Currently the Federal exclusion amount is $5,340,000. The Federal exclusion amount is also indexed for inflation.

These new changes have also closed a loophole. Previously certain trusts avoided New York State income tax when they were established by New York residents but the trustees and the assets were located outside New York. This is no longer the case.

Further Gifts made after April 1, 2014 but made within 3 years of death are now added to the taxable estate. However Gifts made on or after January 1, 2019 will not be added to the taxable estate.

If you need help in this area or have questions feel free contact attorney SPIRIO at 631-277-8844.