If you are approaching the estate planning process, there are a number of different topics that you need to take into consideration, such as finding the most practical type of estate plan and deciding how to divide your assets among beneficiaries. If you have significant assets, it is also important to take a look at estate taxes.
In addition to federal estate tax returns, New York estate tax returns become necessary for the estates of some state residents. Planning ahead can help safeguard your assets and make life easier for your loved ones.
New York estate tax returns and the basic exclusion amount
If your estate goes over the basic exclusion amount, filing an estate tax return in New York becomes mandatory. According to the Department of Taxation and Finance, the basic exclusion amount for estates belonging to those who pass away in 2022 is $6,110,000. When determining the basic exclusion amount, the value of your federal gross estate as well as includible gifts counts toward the basic exclusion amount.
Nonresidents and New York estate tax returns
In some instances, estate tax returns become necessary for estates belonging to nonresidents of New York. For example, your estate could become subject to New York estate taxes even if you are not a resident, so long as you own tangible or real property in the state and your federal gross estate as well as includible gifts go over the basic exclusion amount.
From reviewing strategies to avoid estate taxes to discussing this issue with your loved ones, it is crucial to focus on estate taxes if you expect that they will apply to your estate.