Computing new york state estate tax

So, depending on your individual circumstances, this may be the perfect time to make gifts to meet financial, tax and estate planning goals. The advice of a New York estate attorney can help you design an overall estate and gift strategy to make the most of your assets. We will review your individual situation and develop the best course for your estate planning.

Call today to schedule your initial consultation. By Michael Kutzin. Families would rather have the excess money go to a charity of their choice rather than the state of New York.

One way to preserve this amount is by establishing a trust equal to the estate tax exemption federal or NY. This ensures that the remaining money and growth will not be taxed again when the second spouse dies. There are many ways to structure these trusts to provide flexibility to the grantor, surviving spouse and family at death. This may include setting up a spousal lifetime access trust SLAT which is one type of can in certain circumstances provide the ability to retain some ability to access the funds during the life of the Grantor.

Ultimately, the goal is for assets in the trust to avoid taxation at the deaths of both spouses to maximize a wealth transfer to other estate beneficiaries.

Breaking Domicile with New York — Some individuals are motivated to leave the state of New York before death to avoid estate tax. This may be an effective strategy to mitigate the NY estate tax, as well as the NY income tax. However, careful planning is needed to demonstrate that sufficient ties are broken to escape taxation see our article on residency vs.

Using a properly structured like-kind exchange, NY investment property may be exchanged into other non-NY investment property with no federal tax liability. It is important to note that cooperative apartments are considered an intangible asset that are not subject to NY estate tax for non-NY residents. Non-NY residents can essentially copy this legal structure for other property by creating a special residence trust or LLC for their NY property.

These structures convert the NY tangible property to intangible property and avoid the imposition of the NY estate tax for non-NY residents. An integrated financial plan will not only consider New York legal and estate tax rules, but also the subjective needs of the individual family. A strategy that works for one family might not be suitable for another family with different goals and values.

Considering changing laws and potential changes in personal circumstances, maintaining flexibility in your estate plan is important. One thing is certain, laws and planning needs will change. Working together with an experienced financial advisor, attorney, and accountant are essential for families.

Information Filing requirements Residents The estate of a New York resident must file a New York State estate tax return if: the amount of the resident's federal gross estate, plus the amount of any includible gifts, exceeds the basic exclusion amount applicable at the date of death.

Nonresidents An estate of a New York nonresident must file a New York State estate tax return if the estate includes any real or tangible property located in New York State, and the amount of the nonresident's federal gross estate, plus the amount of any includible gifts, exceeds the basic exclusion amount applicable at the date of death. Includible gifts You must add back any taxable gift under section of the Internal Revenue Code IRC that: was made during the preceding three year period ending on the decedent's date of death, and is not already included in the decedent's federal gross estate However, a gift is not added back if it was made: while the decedent was a nonresident; before April 1, ; between January 1, and January 15, ; or that is real or tangible property having an actual situs outside New York State at the time the gift was made.

When to file and pay Estates must file and pay the tax within nine months after the decedent's death. An extension generally may not exceed six months. In cases where payment within nine months of death would result in undue hardship to the estate, an extension of up to four years may be granted. Waivers and releases Personal property When authorization is required for the release of personal property, it is usually referred to as an estate tax waiver or a consent to transfer.

Real property Authorization to transfer real property is referred to as a release of lien. Closing letter The New York State Tax Department will provide a closing letter to certify that no tax is due or to serve as a final receipt for the tax due. The letter is issued after all processing is completed and should be kept as a permanent record.

Most closing letters will be issued about nine months from the time of filing.