What happens when an estate crosses New York’s exemption threshold by even a few thousand dollars? The entire estate becomes taxable, not just the amount above the line. I have watched Rockland County families lose hundreds of thousands of dollars this way, often because nobody flagged the problem until it was too late to fix.
The Cliff Every Rockland Family Should Understand
New York’s estate tax exemption is far smaller than the federal exemption, and the state offers no gradual phase-out once an estate exceeds it. Cross the threshold by more than 5% and the exemption disappears entirely, exposing the full value of the estate to tax. I have sat across the table from families in New City, Nyack, and Suffern whose parents’ estates landed just inside that danger zone, and the tax bill came as a genuine shock.
Charitable Giving Pulls an Estate Back From the Edge
One of the most reliable tools I recommend to clients approaching this threshold is charitable giving. When a portion of an estate passes to a qualified charity, that portion is deducted before New York calculates what is owed. For an estate hovering just above the exemption, a properly structured gift can pull the whole estate back under the line rather than merely shaving a few dollars off the bill. I walk through exactly how this calculation works in my article on ways New York residents can reduce estate taxes with charitable giving, which covers the mechanics in more depth than I have room for here.
Two Structures Worth Knowing
A “Santa Clause” provision directs any amount exceeding the exemption to a charity of the family’s choosing, rather than to the state. A charitable remainder trust lets a client keep drawing income from an asset during their lifetime while still removing its value from the taxable estate. Under New York’s Estates, Powers and Trusts Law, both structures are well established, but they need to be drafted precisely to hold up once the estate reaches Surrogate’s Court.
That is why I advise Rockland County families not to wait until after a loved one has passed to think about this. By then, most of the planning options are already off the table. I have built my practice around catching these issues early for families throughout the county, from Pearl River to New City.
If your loved one left behind an estate that may be approaching New York’s tax cliff and needs to be reviewed for charitable giving strategies, contact Roman Aminov today for a free phone consultation.
Contributed by Dan Rose, a local business writer specializing in estate tax planning services in New York City.
Roman Aminov Estate Law firm of Queens
147-17 Union Tpke, Kew Gardens Hills, NY 11367, United States
P59P+93 Kew Gardens Hills, Queens, NY, USA
Visit The Charitable Estate Tax Planning Attorney In NYC Official Site
Get directions to this featured business now by using the Map Link below.
You must be logged in to post a comment Login