Do gifts and personal property affect basic exclusion estate tax in New York for 2021?

New York – January 29, 2021

The basic exclusion amount for New York State estate tax for dates of death on or after January 1, 2021, and before January 1, 2022, is $5,930,000, which is an increase from last year’s $5,850,000. Estate taxes can impact beneficiaries and should be discussed with a probate attorney. 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 and includible gifts exceed the basic exclusion amount on the date of death. Nonresidents must file the estate tax return if a decedent had property located in the State of New York under the same guidelines.

Includible gifts and property.

Includible gifts become an important topic as they can raise an estate’s worth over the exclusion amount, necessitating increased tax responsibility to New York State. Includible gift provisions include any taxable gift under section 2503 of the Internal Revenue Code (IRC) that was made in the three year period directly before the decedent’s date of death, and when they are not already included in the federal gross estate. Estate tax waivers can be utilized to release personal property from estate tax valuations, but authorization to transfer real property must be done with a release of lien. Court approval for specific actions must be completed through a waiver and consent form to New York’s Tax Department. A New York Probate attorney can explain the financial impact of these valuations in administration procedures and assist with the preparation and filing of appropriate forms.

New York estate administration.

The administration of a New York estate can be time-consuming, depending upon the nature of the assets left to distribute and events where named beneficiaries, or others will contest estate documents, including a will. The procedures for proper administration are outlined in New York Surrogate Court documents, but the assistance of legal counsel is recommended. Experienced probate lawyers are helpful with the smooth processing of tax documents and filing the appropriate returns with the state and federal governments.

Seek legal counsel.

There may be times when a beneficiary, or other family member will dispute probate action based upon estate valuation questions. A probate attorney will do their best to effectively address any concerns from the executor and beneficiaries of an estate and expediently initiate probate in the New York Surrogate Court. Contact Attorney Ron Meyers with questions regarding estate planning documents and probate action in New York Surrogate Court.

Ron L. Meyers & Associates, PLLC

Address: 475 Park Avenue South, Suite 2100

Manhattan, NY 10016

Phone: 212-644-8787

Sources:

https://www.tax.ny.gov/pit/estate/release_lien.htm

https://www.tax.ny.gov/pdf/current_forms/et/au67.pdf

https://www.tax.ny.gov/pdf/publications/estate/pub603.pdf

https://www.irs.gov/businesses/small-businesses-self-employed/deceased-taxpayers-filing-the-estate-income-tax-return-form-1041

https://www.nysenate.gov/legislation/laws/EPT