Buffalo Estate Tax Lawyers
NY Estate, Gift and Income Tax Guidance
For purposes of New York State estate tax, the gross estate includes all property that a person owned, had control over, or had an interest in on the date of his or her death.
- An estate is required to file a New York State estate tax return if the total of the federal gross estate plus the federal adjusted taxable gifts and specific exemption exceeds $4,187,500 and the individual was either:
- A resident of the state at the time of death
- A resident or citizen of the U.S. at the time of death but not a resident of the state, whose estate includes real or tangible personal property located in the state.
- For an individual who was not a resident or citizen of the U.S. at the time of death, the estate must file a New York State estate tax return if the estate includes real or tangible personal property located in the state and the gross estate located in the U.S. exceeds the filing limit. The filing limit is $60,000 reduced by the sum of:
- The gift tax specific exemption applicable to certain gifts made in 1976
- The total taxable gifts made after 1976 that are not included in the gross estate.
When to file and pay Estate Taxes
- Estates must file and pay the tax using Form ET-706, New York State Estate Tax Return, within 9 months after the decedent’s date of death.
- Estates must submit a completed Federal Form 706, United States Estate Tax Return with the NYS estate tax return, even if the estate is not required to file a federal estate tax return with the IRS.
- Estates may apply for an extension of time to file the return and/or pay the tax using Form ET-133, Application for Extension of Time to File and/or Pay Estate Tax. An extension of time to file generally may not exceed six months. In addition, an extension of time to pay may be granted for up to four years in cases where payment within 9 months of death results in undue hardship to the estate. In either case, interest will be due.
- Penalties may apply for late filing or payment.
Estate Tax rates In NY
New York’s estate tax is calculated by using a graduated rate schedule. Form ET-706 lists the complete rate schedule. For additional information, see Form ET-706-I, Instructions for Form ET 706 New York State Estate Tax Return.
NY Estate Tax Waivers and releases
When authorization is required for the release of personal property, it is usually referred to as an estate tax waiver or a consent to transfer. New York State doesn’t require waivers for estates of anyone who died on or after February 1, 2000. For details, see Publication 603, Estate Tax Waivers.
Authorization to transfer real property is referred to as a release of lien. This release is still used as necessary for all dates of death. See Form ET-30, Application for Release(s) of Estate Tax Lien and Form ET-117, Release of Lien of Estate Tax – Real property or cooperative apartment.
A waiver of citation is used for an estate to get court approval for a specific action and must be approved by the Tax Department. See Form AU-67, Instructions to Request a Waiver of Citation and Consent.
Other information you may need to provide In regards to Estate Taxes:
- Copies of the death certificate
- Copies of the decedent’s will and/or relevant trusts
- Copies of appraisals
- Letters of appointment for executors or administrators
- Copies of relevant documents regarding litigation involving the estate
- Documentation of any unusual items shown on the return (partially included assets, losses, near date of death transfers, others)
The Marriage Equality Act
The Marriage Equality Act (Act) took effect on July 24, 2011, and provides that all marriages, whether between same-sex couples or different-sex couples, will be treated equally under the laws of New York.
The Act amends New York law to recognize all legally performed marriages between same-sex and different-sex couples, whether or not the marriage took place in New York.
The Act applies to all taxes administered by the Tax Department. As a result, any references in the Tax Law or department documents to:
Trusted Buffalo Estate Tax Lawyers
At Friedman & Ranzenhofer, we provide WNY clients with a comprehensive range of estate and gift planning services, from advice regarding the appropriate estate planning structures to preparing the necessary estate and gift tax returns, and to advocating on your behalf in the event of a tax controversy.
At Friedman & Ranzenhofer, our estate tax lawyers pride themselves on providing compassionate, knowledgeable, and practical legal advice. Contact our skilled lawyers at Friedman & Ranzenhofer to schedule a free consultation to learn how we can help you prepare your estate and gift tax returns. Download Our Free Probate and Will eBook