Friday, December 13, 2013

Cuomo Commission Proposes Significant Increase in New York's Estate Tax Exemption

A report released this month by Governor Cuomo's New York State Tax Relief Commission recommends, among other forms of tax relief, that New York's estate tax exemption -- which is presently the same $1 million per person exemption that was in effect in 2000 -- be increased to the current federal exemption amount of $5.25 million, indexed for inflation, and that the top rate be lowered to 10% for amounts in excess of the exemption.

This would be a welcome change, as it would impose estate tax obligations on only the largest estates, and would simplify estate tax planning for New York residents.  The proposed exemption increase would also help stem the tide of New York residents seeking to establish residency in lower tax states which either already have a higher estate tax exemption or, like Florida, have no separate state estate tax at all.

The full report is found here.

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