Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Proposed changes to the New York State estate tax
Author: Scarinci Hollenbeck, LLC
Date: April 2, 2014
Key Contacts
Back
After turning a $10 billion deficit into a $2 billion surplus, New York Gov. Andrew M. Cuomo is facing re-election this year, but first he is proposing a major update to the New York State estate tax law, according to Investment News.
A recent change – included within an ambitious budget that includes tax cuts and investments in education and health care – would reduce estate tax liability over the next few years while simultaneously closing an extremely popular loophole.
The Wall Street Journal explained that the first change would be to raise the exemption from $1 million to $5.25 million over the next four years, which would fall into line with the federal exclusion by 2019. Over the same time period, Cuomo’s proposal would lower the top N.Y. state estate tax rate from 16 percent to 10 percent. That’s the carrot.
The stick, according to Investment News, is that these steps would be paired with proposals to require that the value of lifetime gifts be added back into the estate once the donor is deceased. While individuals with estates worth less than the new exemption will now be free from any estate tax burden under the new tax law, this proposal may cause many high net worth individuals to rethink their estate plans.
“The advice is to keep an eye out for people who might be thinking of gifting,” Kate Cassidy, an advanced markets specialist with Barnum Financial Group’s wealth strategies division told the news source. “I would put thought into it: Building a trust that can receive the gift. This is a large gift you’d make all at once, an asset that you can give away without feeling the pinch.”
Proponents of the bill feel that it will allow the state to continue raising revenue from the estate tax law while allowing individuals who have amassed more than $1 million over a lifetime of hard work to keep their money.
- Practices: Tax and Trusts & Estates, Estate & Trust Litigation, Real Property Tax Strategies, Sophisticated Estate Planning & Wealth Preservation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.