| HOW TO AVOID THE NEW YORK ESTATE TAX
READER QUESTION:
Hello,
My question is, what can be done to protect your assets from New York estate taxes if you surpass the exempt amount? Thank you.
MY RESPONSE:
I could write a book about this question, but I can’t in this forum. So let me simplify a very complicated subject.
New York has a $7.35 million estate tax exemption in 2026, but there’s a catch. If your estate exceeds that amount, the exemption begins to disappear. Once your estate exceeds $7,717,500, you lose the entire exemption, and your estate is taxed from the first dollar. We call this the “estate tax cliff.”
So, how do we avoid the cliff? The simple answer is to give money to charity, move to a state like Florida that has no estate tax, or die with less money!
And if you’re married, it’s particularly important to make sure that each spouse takes advantage of their own estate tax exemption.
There are many ways to accomplish these things, but that’s where good estate planning comes in.
Each of these answers could be a chapter in that book, but a consultation with one of our attorneys can help you understand which strategies make sense for you and your family.
I hope this helps. |
