New York Increases Estate Tax Exemption

New York, which imposes its own estate tax on the assets left when someone dies, has more than doubled the amount that can be left free of tax. As of April 1, 2014, the New York estate tax affects only taxable estates worth more than $2,062,500.

The exempt amount will keep going up each year until 2019, when it should match the exemption from federal estate tax, which by then is likely to be almost $6 million.

One unusual feature of the New York estate tax structure is that if an estate is large enough to be subject to the tax, the entire value of the estate--not just the amount in excess of the exempt amount--is taxed. For more, see the article on New York Estate Tax.