By: Stewart M. McGough. In addition, the estate will have to be administered, at least in part, in New York to be able to transfer title to the distributee or legatee under the decedent’s will (or, if there is no will, under the applicable intestacy rules). One strategy to avoid New York estate tax has been to make gifts to reduce the amount of the estate to less than the New York exemption amount (currently $5,740,000). Use Form ET-706, New York State Estate Tax Return. You must complete and include Form 706 even if the estate is not required to file a federal estate tax return. What does this mean for gifting to beneficiaries in your estate plan… In early December, we wrote an article on a NYS gift tax law that was set to expire on January 1, 2019 [New York State Gift Tax Death Bed Gifting Coming Back]. ET-90-P (1/00) Packet This packet contains: — Form ET-90 New York State Estate Tax Return — Form ET-90.1 New York State Estate Tax Return Schedules A - D — Form ET-90.2 New York State Estate Tax Return Schedules E - G More property tax topics; Senior citizens exemption. The maximum rate of tax will continue to be 16%. On December 22, 2017, the Tax Cuts and Jobs Act implemented substantial cuts to the estate tax. The “look back rule” has been approved by New York State. ** In 2026 the New York estate tax exemption is actually scheduled to be slightly higher than the federal estate tax exemption due to differences in their respective indexing methodologies. ... $11,180,000 in 2018, $11,400,000 in 2019, $11,580,000 in 2020, and $11,700,000 in 2021. [1] The main change, effective 2018, doubled the lifetime estate exclusion amount, which IRS clarified to be $11,180,000. If wife dies in 2019, New York estate tax at her death may now be avoided because her full New York exclusion amount would be available to shield the taxable assets remaining outside of the credit shelter trust. There is an exception for gifts made between Jan. 1, 2019, and Jan. 15, 2019, which are not added to the taxable estate. As of January 1, 2019, the New York estate tax exemption amount will be the same as the federal estate tax applicable exclusion amount prior to the 2017 Tax Act which is $5,000,000 adjusted for inflation. New York imposes estate taxes on a non-resident who owns New York real property in his or her own name. *Based on 2019 inflation-adjusted amounts. As of January 1, 2019, the New York estate tax exclusion amount was poised to become the same as the basic federal exclusion amount of $5.0 million, adjusted annually for inflation. Indexed for inflation for each year after 2019. The Estate Tax is a tax on your right to transfer property at your death. New York law: On April 1, 2017 the New York estate tax exemption increased to $5,250,000 and this will be effective through December 31, 2018. Extensions New York eliminated its gift tax in 1999 and the federal estate and gift tax exemption is a not insubstantial $11.4 million for 2019 (in addition to the annual gift allowance of $15,000 each to unlimited individuals). This article is dealing with the 2020 New York Resident Estate Taxation. Starting January 1, 2019 the New York estate tax exemption will be greater than $5.6 million and is scheduled to increase annually for inflation. ... estates of decedents survived by a spouse may elect to pass any of the decedent’s unused exemption to the surviving spouse. Local governments and school districts in New York State can opt to grant a reduction on the amount of property taxes paid by qualifying senior citizens. New York State Estate Tax Return For estates of decedents dying after May 25, 1990, and before February 1, 2000. 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