2021 Federal Estate Tax Exemption:
Effective January 1, 2021, the Federal Estate Tax Exemption is $11,700,000.00 per person, through December 31, 2025. Effective January 1, 2026, the Federal Estate Tax Exemption will sunset and revert back to $5,490,000.00, per person.
- The Federal “portability” election, permitting a deceased spouse to transfer unused exclusion amounts to a surviving spouse, is unchanged.
- The rules providing a “step-up” in cost basis to date of death value for capital assets are unchanged.
- Annual gift tax exclusion amount is $15,000.00 per person
- The maximum Federal tax rate is 40%.
2021 New York State Estate Tax Exemption:
Commencing January 1, 2021, the New York State Estate Tax Exemption amount is $5,930,000.00, per person. However, if an individual dies owning just 5% more than the $5,930,000.00, there is a “cliff” taxing the decedent on the full value of the estate, not just the amount over the exemption amount.
- No NYS gift tax
- No portability in NYS
- Gifts made in the three (3) years prior to death are subject to “claw-back” and included in the calculation of the NYS gross estate
- The maximum NYS tax rate is 16%.
If you have any questions about the above material, or wish to speak to an attorney, please contact Pfalzgraf Beinhauer Grear Harris Schuller LLP at (716) 204-1055.
Pursuant to U.S. Treasury Department Circular 230, unless we expressly state otherwise, any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing or recommending to another party any matter(s) addressed herein.