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
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Author: Michael Mietlicki
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Author: Graham Staton
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Author: Michael Mietlicki
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena
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.