New York Estate Tax: Understanding the 105% Cliff, Exemptions, and How to Plan Ahead

What You Should Know About New York Estate Tax

When families start worrying about New York estate tax, the anxiety usually comes from the same place: they sense that one wrong move could trigger a massive tax liability, but they’re not quite sure where the real danger lies. So let’s get clear on what actually matters before diving into strategy.

Your risk depends on specific numbers—not your gut feeling about wealth. Here’s the counterintuitive part: in New York State, being slightly over the exemption can actually hurt more than being well over it. That’s because of the 105% cliff. If your estate sits anywhere close to that exemption threshold, a routine market uptick, a revised appraisal, or a previously overlooked account could change everything. The solution isn’t to guess—it’s to measure your estate the way the law measures it, then stress-test the result.

Your estate plan isn’t just a will or trust—it’s also the behind-the-scenes details that make those documents actually work. Titles, beneficiaries, and funding proof are what make your estate planning documents effective. The cleanest legal documents in the world will fail if accounts are titled incorrectly, beneficiary forms direct assets somewhere unexpected, or a trust was never properly funded. When you’re near the exemption threshold, these “paperwork” issues aren’t minor details. They can determine whether your estate stays under the exemption amount or tips into a six-figure tax bill—and they almost always dictate how expensive and complicated administration becomes.

New York doesn’t offer the easy “spouse fix,” and multi-state families need extra coordination. Federal portability can help at the federal level, but here’s the catch: New York has no portability. Married couples often need New York-specific estate planning to reduce their state estate tax exposure. And if New Jersey enters the picture, remember that NJ doesn’t have an estate tax (it was repealed effective January 1, 2018), but it does have an inheritance tax that hinges on the decedent’s residency, property location, and the beneficiary’s relationship to the deceased person. You need one coordinated plan that addresses where you live, what you own, and where your property sits.

Getting Ready for Your Estate Planning Meeting

If you’re anywhere near the New York estate tax cliff, acting on incomplete information is your biggest risk. Your most productive first step? Build a clean, professional-ready file so your estate planning attorney and CPA can advise on strategy—rather than spending billable hours reconstructing your balance sheet from scratch.

First, figure out how urgent your situation really is. Treat things as time-sensitive if any of these apply: your estimated taxable estate is within roughly 10% of the New York estate tax exemption (or already in the phase-out range); you own real estate that may have appreciated significantly (NYC, Westchester, Long Island, and many New Jersey markets are common culprits); you hold an illiquid asset that’s difficult to value—like a business interest, partnership stake, or private investment; you expect a major change soon—a sale, liquidity event, inheritance, divorce, or retirement rollover; or there are health concerns, since cliff problems are often created by unfortunate timing combined with valuation uncertainty.

Gather proof, not estimates. Pull recent statements for bank, brokerage, and retirement accounts. Collect deeds and mortgage statements for real estate. Locate life insurance declarations pages showing owner and beneficiaries. Compile business ownership records and any trust schedules. For each asset, record where the value came from and the “as of” date.

Summarize recent gifts or transfers. Even when a transfer isn’t directly subject to gift tax in New York, documenting what happened—amount, date, recipient, method—helps your attorney evaluate potential inclusion under federal rules and reduces confusion during administration down the road.

Know your exemption history. The New York State estate tax exemption changes every year. For reference: 2022 was $6,110,000; 2023 was $6,580,000; 2024 is $6,940,000. When you record a number, note the source and effective date alongside it.

Make your first attorney meeting count. Tell counsel upfront that you’re concerned about being near the New York cliff. Ask for a written funding and titling checklist. Request that they model “up/down” valuation scenarios—what happens if your real estate or market accounts move 5% to 10%? That approach helps ensure your first meeting produces clear next steps rather than vague advice.

If you want this work to translate into real planning—not just a stack of PDFs—consider working with a firm that focuses exclusively on estate planning. That keeps the conversation centered on implementation: wills, trusts, beneficiary coordination, and, when needed, estate tax planning that’s realistic for your timeline and asset mix.

2024 New York Estate Tax Exemptions and Rates at a Glance

The numbers below are for the 2024 tax year and help you quickly size up your risk. Always confirm current figures before making decisions—especially if you’re close to the exemption.

This table compares three jurisdictions—New York State, the federal estate tax system, and New Jersey—showing the 2024 exemption (if any), whether a cliff threshold applies, the top applicable rate, and whether portability is available.

Jurisdiction	2024 Exemption	Cliff Threshold	Top Rate	Portability
New York State	$6,940,000 (phase-out applies above)	105% cliff: $7,287,000	16%	No
Federal	$13.61 million	No cliff	40%	Yes (with timely Form 706)
New Jersey	No NJ estate tax (repealed 2018)	N/A	Inheritance tax up to 16% (varies by beneficiary class)	N/A

Official sources: New York exemption and estate tax framework from the NY Department of Taxation and Finance and NY Tax Law Article 26. The federal estate tax exemption and portability rules from the Federal exemption and IRS Form 706 guidance. New Jersey inheritance tax from the NJ Division of Taxation.

How the 105% Estate Tax Cliff Actually Works

What catches most families off guard is that New York estate tax is measured at a specific moment, using legal definitions that don’t line up with “what goes through probate.” That disconnect is exactly why the cliff creates real-world surprises.

Timing matters more than you think. Values are generally measured as of the date of death. A market swing, a corrected appraisal, or a newly discovered asset can change the tax outcome after the fact—when there’s no time left to adjust.

What counts in your taxable estate? Forget the question “Does it go through probate?” The real question is “Was it owned or effectively controlled by the decedent at death?” Commonly included items: real estate (including that NYC co-op, Westchester home, or upstate cabin); bank and brokerage accounts; retirement accounts (401(k), IRA)—even when they pass by beneficiary designation; business interests (LLCs, partnerships, closely held corporations); certain trust interests, especially where the decedent retained rights, control, or benefits; and life insurance proceeds when the deceased person owned the policy or retained incidents of ownership.

A note on valuation: In limited situations, an executor may use an alternate valuation date under federal rules (IRC Section 2032), which New York generally follows, but this is technical and fact-specific. When you’re close to the cliff, precision and documentation aren’t optional—small differences in appraisals can drive the entire outcome.

The AVOID Framework: A Practical Approach to Estate Planning

Most costly estate tax outcomes don’t stem from bad strategies—they come from late action, missing documents, or plans that were never properly implemented. The AVOID method (Assets, Verification, Options, Implementation, Documentation) gives you a practical way to pressure-test your plan before it matters.

Think of AVOID as a set of checkpoints: confirm the numbers, confirm legal ownership, choose realistic tools, implement them correctly, and preserve evidence so the plan holds up during administration.

A: Assess Your Estate Value

Start with a full asset-and-debt snapshot—dated (e.g., “Values as of 3/31/2024”). Include who owns each asset, how it’s titled, and a value supported by a statement or appraisal. Then subtract documented liabilities and likely deductible expenses.

The result should be a reliable estimate of your taxable estate that you can compare to the current exemption and the 105% cliff. If a real estate appraisal is old or you own an illiquid business, consider an updated valuation—when you’re near the threshold, “close enough” can mean the difference between no tax and significant tax liability.

To make your first attorney meeting efficient, your “A” work product should be something counsel can model immediately: a list they can run scenarios on (e.g., “If my condo appraises 10% higher, do we cross the cliff?”).

V: Verify Ownership and Beneficiaries

Estate plans often fail at the plumbing level: titles and beneficiary designations don’t match what the will or trust contemplates. This step is where you prove who owns what, who receives it, and what elections already exist.

Review deeds (individual, joint, tenants in common, trust-owned) and keep copies of recorded documents. Confirm account registrations with supporting statements. Save beneficiary confirmations for retirement accounts and life insurance—both primary and contingent. Confirm your trust is actually funded; an unfunded trust is just paper. If a spouse died, locate any filed (or unfiled) Form 706 and related workpapers, since portability is federal and deadline-driven.

Multi-state families should also gather residency and domicile facts. New York and New Jersey issues can turn on where you were domiciled and what property is located in each state. Keep proof: primary home documentation, tax filings, driver’s license, voter registration. Being a resident of New York versus New Jersey can significantly affect which estate tax laws or inheritance tax rules apply to your situation.

O: Choose the Right Planning Options

Once your numbers are reliable, the right options become clearer. The key is choosing moves you can execute correctly within your timeline and support with documentation.

Attorneys typically think in time bands. Immediate (days to weeks): coordination fixes like beneficiary updates, correcting account titling, and—in the right fact pattern—disclaimers. These help, but they’re detail-heavy and can backfire if done in isolation. Mid-term (weeks to months): trust-based structures for married couples, including credit shelter or “AB” planning, and life insurance planning such as irrevocable life insurance trusts (ILITs) where appropriate. Long-term (months to years): advanced tax planning like SLATs, GRATs, and charitable strategies, plus business succession planning—typically requiring formal valuations and ongoing maintenance.

The best strategy is the one you can implement correctly, document thoroughly, and maintain over time. For many New York families, the right tool is about fit, not complexity. If your main concern is avoiding probate friction and keeping things organized, a well-drafted will plus the right powers of attorney may suffice. If you’re worried about control (minor children, blended families, second marriages) and tax exposure near the cliff, trust planning provides structure a simple will can’t. If long-term care costs concern you, planning may need to coordinate tax goals with Medicaid planning and asset protection—especially for older New Yorkers and New Jersey residents.

I: Implement With Proper Execution

Good drafting isn’t the finish line. Implementation is where plans succeed or fail—and near the cliff, implementation should be done as if the work will be reviewed line by line later. During administration, it often is.

Sign documents with required witnessing and notarization; keep execution copies. Record deeds and other instruments when required; retain recorded copies. Get written confirmations for beneficiary and account changes—screenshots aren’t enough; save confirmations from the institution. Complete trust funding and keep evidence: new statements, recorded deeds, assignment documents. Preserve filing proof where applicable, such as timely filed estate tax returns and portability elections.

Common failure point: trusts that exist on paper but never receive the assets they were supposed to own.

D: Document Everything

Documentation transforms a plan into something your family can actually use when it matters most—protecting your loved ones from unnecessary delays and disputes.

Create an annual estate snapshot (one page is ideal) listing assets, approximate values, titles, and beneficiaries. Maintain a secure digital and/or paper archive with a simple index so your executor can navigate it. Make sure the executor—and a trusted backup—knows where records are and how to access them. Set review triggers after major life events: marriage, divorce, a home purchase, a business change, a major market move, or a move across state lines.

If you’re in the watch zone, add one more habit: rerun your estate snapshot whenever your largest asset class moves materially. For many families, that’s real estate or market accounts. This is how you avoid cliff surprises created by stale numbers.

How to Use an Estate Tax Calculator the Right Way

A calculator can be a useful starting point—but only if you feed it complete data and use the result correctly. Think of it as a screening tool that helps you decide what to verify and how quickly you need to meet with counsel.

Inputs that make or break the result: Include all major assets (real estate, investments, retirement accounts, business interests, life insurance where applicable). List debts and likely deductible expenses. Select the correct tax year. Be consistent about residency and domicile assumptions.

What a good calculator should show you: your estimated taxable estate; the exclusion amount used (with year); the 105% cliff threshold; whether you land below the exemption, in the phase-out range, or above 105%; and a plain-English safe/watch/urgent takeaway.

This table lists three possible estate tax calculator outcomes—Safe, Watch, and Urgent—along with a plain-language interpretation of each outcome and a recommended action to take next.

Result	What It Means	Next Step
Safe (clearly under exemption)	Low immediate NY estate tax risk	Recheck annually and after major asset changes
Watch (near exemption/phase-out)	High sensitivity to valuation swings	Verify titles, beneficiaries, valuations; have counsel model scenarios
Urgent (near or above 105% cliff)	Risk of losing the exemption entirely	Discuss implementable strategies promptly; focus on execution and documentation

Save the calculator output along with your exemption source and the as-of date for your values. That snapshot makes your attorney meeting far more productive.

When Small Valuation Changes Lead to Big Tax Bills

The following simplified examples show how the numbers shape the estate planning conversation. These are illustrative; your attorney should confirm what applies to your specific facts.

Example 1 (Watch zone): Just below the cliff.

Assume 2024 figures. Danielle estimates her estate (values as of 4/1/2024): NY residence at $3,500,000; brokerage accounts at $2,900,000; retirement accounts at $900,000. Gross total: $7,300,000. Minus mortgage/loans of $250,000 and estimated deductible expenses of $100,000. Estimated taxable estate: $6,950,000.

At roughly $6.95M, Danielle sits close enough to the $6.94M exemption that a small change could matter. Her immediate priority is verification: updated real estate comps or an appraisal, beneficiary and titling confirmation, and a lawyer-reviewed scenario model showing what happens if her residence appraises higher.

Example 2 (Urgent zone): Slightly above the 105% cliff.

Same facts, but an updated appraisal comes back higher and a forgotten account surfaces: NY residence (new appraisal) at $3,900,000; brokerage at $2,900,000; retirement at $900,000; overlooked savings account at $75,000. Gross total: $7,775,000. Minus mortgage/loans of $250,000 and estimated expenses of $100,000. Estimated taxable estate: $7,425,000.

At about $7.425M, she’s above the 2024 105% cliff of $7.287M. The urgency increases: counsel will focus on what’s realistically implementable, what can be documented cleanly, and what can be maintained—because almost-right planning near the cliff comes at a high cost.

New York vs. Federal vs. New Jersey: Understanding the Differences

Many families assume the federal estate tax exemption is the only number that matters. In New York, that assumption often leads them astray—the state exemption is significantly lower, and the cliff makes borderline estates unusually sensitive. Understanding how New York’s estate tax laws differ from federal rules is essential for proper tax planning.

Two planning points that come up again and again:

Portability is federal, not New York. A federal portability election allows a surviving spouse to inherit their deceased spouse’s unused federal estate tax exclusion—but it doesn’t transfer a New York exemption. New York couples often need state-focused planning—including proper use of trusts, the marital deduction, and titling—to reduce NY exposure after a spouse’s death.

Multi-state families need state-specific advice. New Jersey inheritance tax isn’t triggered by where your beneficiaries live. It hinges on factors like the decedent’s NJ residency and/or NJ-situs property (especially real estate and tangible personal property), and the beneficiary’s relationship to the decedent. Notably, Class A beneficiaries (spouses, children, parents, grandchildren, and certain others) are generally exempt from NJ inheritance tax. If you own NJ property or have NJ connections, ask for planning that accounts for both states.

When asset location, residency, or filing rules cross state lines, involve attorneys licensed in each relevant state. That reduces the risk that a good plan in one state creates problems in another.

Documents You’ll Need for Ownership and Beneficiary Review

If you’re close to the cliff, small paperwork gaps can create significant downstream costs. These are the documents that most often reveal hidden issues:

• Property deeds (and updated title reports showing current owners and how title is held)
• Bank and brokerage statements showing legal ownership and titling (including TOD/POD forms)
• Retirement account records showing primary and contingent beneficiaries
• Life insurance declarations pages showing policy owner and beneficiaries (ownership is critical for inclusion analysis)
• LLC/partnership/shareholder documents for business interests (percentage ownership and transfer restrictions)
• Wills, trusts, and amendments, including trust funding schedules
• Federal Form 706 (the estate tax return) if a spouse died and a portability election was (or should have been) made, plus proof of timely filing
• Residency and domicile support (recent income tax returns, primary residence records) when state-specific treatment is in question
• Gift/transfer records for significant lifetime gifts (bank records, dated gift letters, trust funding confirmations)

Estate Planning Strategies for Married Couples in New York

Marriage changes the New York estate planning conversation because there’s no NY portability. Two common ownership patterns drive very different outcomes—and call for different priorities.

Scenario 1: Mostly jointly held assets. Joint ownership simplifies access for the surviving spouse, but it can create planning blind spots. Depending on the asset and how it’s held, joint ownership may concentrate wealth in the survivor’s estate and raise New York estate tax exposure later. Discuss with counsel whether any retitling makes sense, whether a disclaimer plan fits your situation, and how to document timing and intent. Disclaimers must meet strict requirements under IRC Section 2518 and have firm deadlines—they’re not a do-it-yourself fix.

Scenario 2: Mostly separately owned assets (one spouse holds most of the wealth). This pattern is common where one spouse owned real estate before marriage, has a business interest, or has significantly larger retirement accounts. It can create cliff risk at the first spouse’s death even when combined net worth doesn’t seem substantial. Discuss credit shelter/AB funding mechanics, whether the plan actually gets funded at first death, and how to balance the survivor’s control and liquidity needs against New York tax exposure.

Implementation questions couples should raise: Who signs which documents? Must deeds be recorded? How will trust funding be proven (statements, assignments, recorded instruments)? What proof does your attorney expect that the plan was actually carried out?

Matching Planning Strategies to Your Timeline

Planning works best when it matches your timeline and your willingness to maintain documentation. Here’s a practical way to think about your options—without assuming every family needs the most complex tools.

This table compares five estate planning strategies and summarizes how quickly they can typically be implemented, their relative complexity, and common situations where each strategy is used.

Strategy	Timing	Complexity	When It’s Typically Used
Update beneficiaries / correct titling	Days to weeks	Lower	Coordinating accounts with existing plan; fixing mismatches
Disclaimers (if fact pattern fits)	Time-sensitive (strict rules)	Moderate	Post-death planning for married couples; must be attorney-guided
Credit shelter (AB) planning; ILITs	Weeks	Moderate	Married couples; removing life insurance from taxable estate
SLATs, GRATs, charitable trusts	Months	Higher	Larger or complex estates; long-term tax and legacy goals
Business succession planning	Months to years	Higher	Closely held business owners; requires valuation and governance planning

Questions to ask your lawyer: “Which options are realistic for my timeline?” “What proof will we need for this to hold up?” “What failure points do you see most often?” “Can you model best-case vs. worst-case valuations so I understand my risk?”

Guiding principle: Sophisticated tools can be powerful, but only when properly drafted, properly funded, and consistently documented.

What You Need to Know About Gifting and Inheritance Rules

Gifting is one of the first ideas people hear about for estate tax reduction. The problem? Gift advice often circulates without context—especially around lookback rules and gift tax implications.

New York note: New York’s temporary gift addback rule has ended. The state previously added certain gifts back into the taxable estate for gifts made from April 1, 2014 through December 31, 2018. That rule has sunset. Today, New York generally doesn’t have a standalone three-year gift addback rule, though gifts can still be pulled into the taxable estate under other legal theories—for example, where control or benefits were retained, or transfers were not completed during life.

Federal three-year rule: Federal law includes certain transfers made within three years of death in the gross estate under IRC Section 2035. This commonly applies to life insurance transferred within that period. That’s why attorneys focus heavily on timing and documentation when lifetime gifts and insurance planning are involved.

How to approach gifting intelligently: Compare how much the gift reduces your taxable estate versus the cost, effort, and documentation needed to defend the transfer later. Ask counsel to run both scenarios—especially if a modest change could swing the outcome and reduce your overall tax liability.

Documentation that protects you: Keep bank receipts, transfer confirmations, dated gift letters, trust funding confirmations, and attorney correspondence showing what was done, when, and why.

New Jersey is different: NJ inheritance tax depends on NJ-specific factors and the beneficiary’s relationship to the decedent. It operates differently from an estate tax and doesn’t depend on where your beneficiaries live. Class A beneficiaries (such as spouses and children) are generally exempt. If your plan includes NJ assets or NJ-resident family members, coordinate gifting and beneficiary decisions with counsel who understands NJ inheritance tax exposure.

Lessons From Estate Planning Cases

These composite examples reflect patterns attorneys see regularly. The takeaway is consistent: outcomes often turn on proof and execution, not just the idea of a strategy.

Case 1: Retitling near the cliff, done correctly under time pressure. A client realized, after updated values, that they were drifting into the watch zone. The fix was coordinating titles and beneficiary designations so the plan matched the documents. What made the difference was process: counsel provided a written checklist, the client obtained written confirmations from financial institutions, and recorded documents were saved in a single, indexed folder. The family avoided “we thought it was in the trust” disputes during administration.

Case 2: Gift documentation that reduced friction and risk. A family had made significant transfers over time. When questions arose later, clean records—bank confirmations, dated gift letters, and a consistent ledger—allowed counsel to respond quickly and credibly. Without contemporaneous proof, the same transfers would have been harder to explain and could have triggered more costly administration work.

Case 3: Credit shelter planning that failed—then was fixed for the survivor. A married couple had an AB-style plan on paper, but after the first spouse died, assets were never properly funded into the intended trust. Years later, when the surviving spouse’s estate was reviewed, the plan’s tax benefits weren’t there because implementation never happened. The corrective work required retitling, updated statements, and a new documentation system. The lesson: paper trusts don’t work. Funding proof is everything.

What to Bring to Your Attorney Meeting

To get efficient, concrete advice, bring a short summary plus the documents that support it. Your goal is to make it easy for counsel to confirm the numbers and issue a practical, written action plan.

• One-page net worth summary: assets, approximate values, ownership/titling, and debts (with an as-of date)
• Deeds and mortgage statements for all real property
• Recent statements for bank, brokerage, and retirement accounts showing legal title
• Beneficiary confirmations for retirement accounts and life insurance
• Wills, trusts, amendments, and any prior planning documents
• List of significant gifts/transfers (dates, amounts, recipients, and proof)
• Your questions, including any “I’m not sure how this is titled” or “I think there’s another account” items

Make review faster (and cheaper): Label documents by asset type, create clearly named PDF files (e.g., “2024-03 Brokerage Statement, Joint, Vanguard”), and include a simple index so counsel can find what they need quickly.

Practical request: Ask for a written funding and titling checklist, plus scenario modeling showing what happens under the exemption, in the phase-out range, and above the 105% cliff.

What to Expect at Your First Consultation

Day one is designed to create clarity fast—especially for clients in the watch zone or at risk of the cliff.

You can expect a review of your asset and debt inventory against New York’s current exemption and cliff structure; a reconciled who-owns-what check covering titles, beneficiaries, and trust funding status; an initial exposure estimate using both best-case and worst-case valuation scenarios; a prioritized action plan (document updates, retitling, trust funding) aligned with your goals and timeline; and clear next steps with responsibilities and expected deliverables, including a funding and titling checklist.

Logistics: Secure handling of documents, a clear request list for missing items, and follow-up modeling once key values and titles are confirmed. In time-sensitive cliff situations, work typically focuses first on the highest-impact verification items—real estate valuation, beneficiary confirmations, trust funding gaps—so decisions aren’t based on guesswork.

This is one reason NY Wills & Estates focuses exclusively on estate planning: it’s a specialized practice, licensed in both New York and New Jersey, with offices in Manhattan (450 7th Avenue) and Hackensack (15 Warren Street). Families can address both NY estate tax and NJ inheritance tax questions through one coordinated plan.

How We Verify Our Legal Information

Content is reviewed by NY and NJ estate planning attorneys at NY Wills & Estates, led by Marc D. Young, Esq. Statutory numbers and frameworks are drawn from primary sources, including the NY Department of Taxation and Finance and NY Tax Law Article 26. Federal estate tax and portability references come from IRS Form 706 guidance and the IRS estate tax overview. New Jersey inheritance tax information is available from the NJ Division of Taxation.

Getting Started: Three Steps to Take Now

Step 1: Run the Estate Tax Calculator

Use the correct year’s exemption, enter complete asset categories and debts, and save the output. Record the exemption source link and the as-of date for your numbers. If the result is watch or urgent, treat that as a signal to verify valuations and schedule counsel promptly.

Step 2: Gather Ownership and Beneficiary Proof

Download or copy ownership documentation: deeds, statements showing title, beneficiary confirmations, insurance ownership pages. Label files clearly and flag anything unclear—”Not sure if joint,” “Beneficiary outdated,” “Trust not funded,” “Missing statement.” This is often where cliff-triggering surprises hide.

Step 3: Prepare for Your Consultation

Schedule the appointment and send your one-page summary and document index in advance. Ask for a written funding and titling checklist and modeled outcomes so the meeting produces decisions and next steps—not just general advice.

Frequently Asked Questions

• How do I check if my estate is near the 105% cliff?

  Build a dated asset and debt snapshot, use the current-year exemption from an official source, and compare your estimate to both the exemption and the 105% cliff number. If you’re close, update real estate and business valuations and have counsel run up-and-down scenarios.

• What documents should I bring to a New York estate planning attorney?

  Bring a one-page estate summary, deeds, statements showing title, beneficiary confirmations, life insurance ownership and beneficiaries, business ownership records, copies of wills, trusts, and amendments, and a list of significant gifts with proof. If a spouse died, include any Form 706 portability filing proof.

• Can a small estate value change affect my New York estate tax?

  Absolutely—especially near the cliff. If you’re close, contact counsel promptly and focus first on accurate valuations and complete asset discovery. Small changes can push you into a worse tax outcome and increase your tax burdens significantly.

• Does federal portability apply to New York estate tax?

  No. Portability is a federal concept and doesn’t transfer a New York exemption to a surviving spouse. New York State requires its own planning approach.

• Can I make retitling or beneficiary changes on my own?

  It depends on the asset type, your overall plan, and timing. Even simple changes can create probate, creditor, distribution, or tax issues if they conflict with your will or trust. Have an attorney review titles and beneficiaries before relying on a change to address a cliff problem.

• Is it safe to make disclaimers or beneficiary changes without legal advice?

  Generally not when you’re near the cliff. Disclaimers must meet strict requirements under federal law (IRC Section 2518) and have firm deadlines, and beneficiary changes can derail a larger plan. Get attorney guidance first and preserve proof of what was done and when.

• How does gift timing affect my estate?

  New York’s temporary gift addback rule (2014–2018) has ended, but federal three-year inclusion rules under IRC Section 2035 and other provisions can still matter. If gifting is part of your plan, ask counsel to model the benefits and documentation burden so the transfer can be defended later.

• When should I consult attorneys in other states?

  Whenever you own property in another state, may be domiciled in more than one state, or have a plan that could trigger different state tax or filing rules. New Jersey is especially important because it has an inheritance tax even though it no longer has an estate tax.

• What do “watch” and “urgent” calculator results mean?

  Watch means you’re close enough that small valuation shifts or missing accounts could change the outcome—verify titles and values and meet with counsel soon. Urgent means you’re at or above the 105% cliff and should prioritize prompt, well-documented planning and corrections.

• How is New York estate tax different from federal estate tax?

  The federal government offers a much higher exemption ($13.61 million in 2024 versus New York’s $6.94 million) and allows portability between spouses. New York State has no portability and imposes the 105% cliff, which can eliminate the exemption entirely. Both governments may tax the same estate, so coordinating federal and state estate tax planning is essential for families with significant assets.

• Do nonresident property owners owe New York estate tax?

  A nonresident who owns real property or tangible personal property located in New York may owe New York estate tax on those assets. The tax applies to New York-situs property regardless of where the decedent lived. If you’re a nonresident with NY property, include this exposure in your estate planning.

Ready to Take the Next Step?

Call NY Wills & Estates at 516-518-8586 to schedule your estate planning consultation. During the meeting, you can discuss your specific estate planning needs with a specialized attorney, get clear answers about which documents and strategies are right for your situation, understand the legal requirements specific to New York or New Jersey, and receive a personalized plan of action with transparent guidance on next steps.

This is your opportunity to get expert, focused counsel from attorneys who practice estate planning exclusively. In-person meetings are available at the Manhattan office (450 7th Avenue) and the Hackensack office (15 Warren Street).

 

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