by Long Island Attorney Paul A. Lauto, Esq.
New York's gift and estate tax law has changed effective April 1, 2014 and some of it is good, some of it is bad and some of it is really ugly. The law enacted differs from the proposed law, as detailed in our March 10, 2014 blog.
The good news is that the NYS estate tax exemption limit, will gradually increase over the next five years to match the federal estate tax exemption limit. The increased limits are as follows:
1. $2,062,500 from April 1, 2014 through March 31, 2015.
2. $3,125,000 from April 1, 2015 through March 31, 2016.
3. $4,187,500 from April 1, 2016 through March 31, 2017.
4. $5,250,000 from April 1, 2017 through March 31, 2018.
5. From January 1, 2019 on, it will match the federal exemption.
The bad news, is that the new law has imposed a 3 year look back period for gifts. That means that gifts made within 3 years prior to death, will be added back in to the estate for tax purposes. The exceptions are gifts made prior to April 1, 2014, gifts made while not a New York resident and gifts made on or after January 1, 2019.
See the full article at www.liattorney.com/scales-of-justice.html.
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