New York Estate Tax Update for 2025
As of January 1, 2025, the NY estate tax exclusion has increased from $6.94M to $7.16M.
What does this mean for New Yorkers?
·?Estates valued at or?under $7.16M owe?no?NY estate tax.
·?Estates valued?over $7.16M face tax rates from 3.06% to 16%.
·?Estates valued?between 7M to $7.92M can save BIG by including a charitable savings clause in their wills / revocable trusts (more to come on wills vs revocable trusts in my next post).
Without including a charitable savings clause, a $7.5M estate passing to children would owe?$694,000?in NY estate tax. But, by including a charitable savings clause, the tax is?completely?eliminated.
Instead, that $694,000 is split between charities?and the taxpayer’s children. Think about that – with no planning, $694,000 disappears. But with proper planning, $340,000 is used for charitable causes near and dear to the taxpayer’s heart, and an additional $354,000 is made available to the taxpayer’s children. The taxpayer could even give that $340,000 to a donor advised fund so that the taxpayer’s children can participate in charitable giving after the taxpayer’s death.
Calling all New Yorkers – Now is a good time to review your estate plan, especially if your estate falls in the $7M–$10M range. There are various strategies to ensure your estate is not subject to NY estate tax, and a simple tweak could make all the difference.
Simplified Example, see???
