The State of New York has an unusual estate tax “cliff” of 133% that goes into effect when the value of the estate exceeds the State’s basic exclusion. This cliff applies because of the reduction in the amount of credit that is used against the New York Estate Tax. The marginal rate of 133% applies to the estates of decedents who passed away between April 1, 2015, and March 31, 2016. Estates that are valued between $3,125,000 and $3,281,250 are subjected to the estate tax. Individuals who may be impacted by this 133% tax rate should speak with a competent estate planner to decide on options. One option mentioned in this article involves providing a bequest to a favorite charity in order to receive the necessary tax benefits.
See John D. Dadakis, New York’s 133% Estate Tax, Holland & Knight, August 17, 2015.
