The new laws for the estate tax in New York are going to benefit a lot of state citizens in the upper middle class, many of whom have worked over the course of a lifetime to accumulate their wealth.
Not everyone will benefit from the laws, however, as the financial “cliff” included in the language of the new law may raise the marginal tax rate for some individuals, according to Newsday. On April 1, the state’s estate tax exemption rose to over $2 million, more than doubling the previous exemption of $1 million. Further, the exclusion will continue to rise by $1,062,500 every April 1 until 2017.
Photo courtesy of Florian Giorgio (Unsplash.com)
By 2017, the New York state estate tax exemption will match the federal estate tax exclusion, which currently sits at $5.34 million, the news source explained. At this point, the state’s exemption will be indexed for inflation like the federal exemption.
This new law means that the majority of New York residents will be able to pass on their estates tax-free. Descendants of those that are above the exemption, however, may now face a larger tax bill than they otherwise would have, The Times Beacon Record explained. If the estate is valued between 100 percent and 105 percent of the exclusion amount, the additional sum will be taxed.
This means that an estate of $2,165,625 would only be taxed on the amount in excess of the $2,062,500 exemption this year – $103,125. However, an estate valued at only $1 more would be subject to tax on the entire sum of the estate. Further, the new estate tax law adds a limited three-year look back period for gifts made between April 1, 2014 and Jan. 1, 2019, during which time the value of any taxable gift is added back into the estate.
One of the reasons for the new estate tax law in New York was to make the state more attractive to wealthy seniors, according to Newsday. The wealthiest among them, however, may find better states in which to pass on their estates.
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
