There are two main types of estate taxes estates here in New York could potentially be subject to upon a person’s death. One is the state estate tax, as New York is among the states that has its own such tax. The other is the federal estate tax.
When a person here in New York passes away, whether or not his or her estate would be subject such taxes depends on the size of his or her estate. Not all estates are required to file and pay estate taxes. Rather only estates that are valued in excess of certain exclusion amounts are subject to such requirements. Today, we will go over the state and federal exclusion amounts.
The New York exclusion amount
Generally, for estates of individuals who pass away in 2019, only those valued in excess of $5,740,000 are required to file New York estate taxes. For estates of individuals who died in 2018, the state exclusion amount is a little lower, coming in at $5,250,000.
The federal exclusion amount
The federal estate tax exclusion amount is higher. The amount is $11,400,000 for estates of those who pass away in 2019 and $11,180,000 for estates of those who passed away in 2018.
There are various rules on what is and isn’t included when calculating an estate’s value for determining whether or not it exceeds the applicable exclusion amounts. There are planning steps individuals can take within the framework of these rules to try to keep their estate below the value level that would trigger estate tax liability upon their death. Estate planning lawyers can provide individuals with sizable estates with guidance and advice on strategies for legally avoiding estate tax liability.