Estate Tax Planning Attorney in New York

New York has its own estate tax, separate from the federal estate tax, and it works differently. Its most important feature is the "cliff": a New York estate that goes only slightly over the state exclusion amount can lose the benefit of the exclusion entirely. For 2026 the New York exclusion is $7,350,000 and the federal exclusion is $15,000,000. That leaves a wide range of estates that owe no federal estate tax but may still face New York tax.

Schwartsman Law Group helps New York families plan around both systems. We work with clients in Manhattan, Brooklyn, Queens, the Bronx, Staten Island, and Long Island. Our attorneys are licensed in New York. Call (212) 518-3868 or schedule a free consultation.

2026 Estate and Gift Tax Figures at a Glance

These are the 2026 figures from official government sources. They change from year to year, so we check them again whenever we update a plan.

Item	2026 figure	Source
New York estate tax basic exclusion amount (dates of death Jan. 1 to Dec. 31, 2026)	$7,350,000	NYS Department of Taxation and Finance
New York basic exclusion amount, 2025 (for comparison)	$7,160,000	NYS Department of Taxation and Finance
Federal estate and gift tax basic exclusion amount	$15,000,000	IRC 2010(c)(3), as amended by Pub. L. 119-21; Rev. Proc. 2025-32
Federal annual gift tax exclusion, per recipient	$19,000	Rev. Proc. 2025-32
Top of the New York cliff (105% of the 2026 exclusion)	$7,717,500	Calculated under Tax Law 952

The New York figure depends on the date of death. If a death occurred in 2025, the $7,160,000 figure applies, not the 2026 figure.

How the New York Estate Tax Cliff Works

New York Tax Law 952 sets the state's basic exclusion amount. The statute starts with $5,000,000 and adjusts it for inflation every year beginning in 2019, rounding to the nearest $10,000. That calculation is how the exclusion reached $7,350,000 for 2026.

The federal exclusion simply shelters a fixed amount. The New York credit is different, because it depends on the size of the taxable estate:

• At or below 100% of the exclusion. The full credit applies. For a 2026 death, that means a New York taxable estate of $7,350,000 or less.
• Between 100% and 105% of the exclusion. The credit phases out. For 2026, that range runs from $7,350,000 to $7,717,500. The credit phases out across this range.
• Above 105% of the exclusion. No credit is left. The estate is taxed as if the exclusion did not exist.

The phase-out range is narrow: $367,500 for 2026. A rise in real estate values, a large retirement account, or a life insurance policy that was not counted can push an estate from fully sheltered to fully exposed. Many New York families only learn this when the estate is being settled, and by then most planning options are gone.

New York taxable estate (2026 death)	Percent of exclusion	Effect on the credit
$7,000,000	About 95%	Full credit
$7,500,000	About 102%	Credit partly phased out
$7,800,000	About 106%	No credit

These examples only show where each estate falls relative to the cliff. The actual tax depends on the full return, including deductions and lifetime gifts. We calculate it for each family individually.

For a longer, step-by-step explanation, read our New York estate tax cliff guide.

New York's Three-Year Gift Add-Back

Under Tax Law 954(a)(3), certain gifts made within three years of death are added back into the New York estate. A gift made shortly before death may therefore not reduce the New York taxable estate as expected. Under current law, this add-back rule ends for deaths on or after January 1, 2032.

The add-back matters a great deal for families close to the cliff. Making a large gift late in life may not help on the New York side, and the timing of each gift should be part of the plan.

Bills have been introduced in Albany that would change the New York estate tax, including a proposal to repeal it. These are proposals only, not enacted law. We plan under the law currently in effect and review plans if the law changes.

The Federal Estate and Gift Tax in 2026

Under IRC 2010(c)(3), as amended by Pub. L. 119-21, the federal basic exclusion amount for 2026 is $15,000,000. The amendment also provides for inflation adjustments in years after 2026. The federal exclusion covers both lifetime taxable gifts and transfers at death.

The federal annual gift exclusion for 2026 is $19,000 per recipient. A regular program of annual exclusion gifts to children and grandchildren can lower the size of an estate over time. Because certain gifts made within three years of death are added back under Tax Law 954(a)(3) (sunsetting for deaths on or after January 1, 2032), the timing of larger gifts should be planned early.

Life insurance is often overlooked

Under IRC 2042, life insurance on the decedent's life is included in the gross estate if the proceeds are payable to the executor. It is also included if the proceeds go to other beneficiaries but the decedent held any "incidents of ownership" in the policy at death, alone or with someone else. Families often leave insurance out when they add up their net worth, and a policy can be the asset that pushes an estate past the New York cliff. We review who owns each policy and who is named as beneficiary.

Portability of the Unused Federal Exclusion (Federal Only)

Portability is a federal rule. Under IRC 2010(c), a surviving spouse's applicable exclusion is the basic exclusion amount plus the "deceased spousal unused exclusion" amount, called DSUE, left over from the spouse who died first. Here is how it works:

• A timely return and election are required. Under IRC 2010(c)(5)(A), the executor must file a federal estate tax return (Form 706) that computes the DSUE amount and makes the election. The election cannot be made on a return filed after the deadline, including extensions.
• A late election may be possible for smaller estates. Rev. Proc. 2022-32 gives estates that were not otherwise required to file a simplified way to elect portability. They can file a complete Form 706 on or before the fifth anniversary of the death. The return must state at the top that it is filed under Rev. Proc. 2022-32 to elect portability under section 2010(c)(5)(A).
• The election is irrevocable. Once it is made, it cannot be undone. The executor should decide with full information.

Portability is part of the federal system. Do not assume it does the same thing for the New York estate tax, which is calculated separately under Tax Law 952 and has its own cliff. When we plan for a married couple, we look at the New York side on its own and do not count on federal portability to protect the second estate in New York.

Even when no federal estate tax is due, filing a Form 706 to elect portability may be worth considering after the first spouse dies. That is especially true if the survivor's assets could grow or if the federal law could change.

Planning Tools We Review With Clients

No single method fits every family. Depending on your assets and goals, we may review the following:

• Measuring the New York estate accurately. We include real estate, brokerage and retirement accounts, business interests, and life insurance, and we compare the total with the cliff range for the expected year of death.
• Lifetime gifts. We consider annual exclusion gifts of up to $19,000 per recipient in 2026 and larger gifts that use part of the federal exclusion, keeping New York's three-year add-back in mind.
• Revocable living trusts. Under EPTL 7-1.17, a lifetime trust must be in writing and be either executed and acknowledged by the creator and a trustee (unless the creator is the sole trustee) or signed before two witnesses. Under EPTL 7-1.18, the trust is valid only as to assets actually transferred into it. A statement in the trust that assets belong to it is not a transfer. A trust that has not been funded does not help.
• Deeds to a revocable trust. Transferring a home to the owner's own revocable trust is generally exempt from the New York State real estate transfer tax under Tax Law 1405(b)(4) and (b)(6). In New York City, the transfer is generally exempt from the city transfer tax under Admin. Code 11-2106(b)(8). Transfer tax filings are still expected even when no tax is due.
• Life insurance ownership. We look at who owns each policy and whether the decedent's incidents of ownership would bring the proceeds into the estate under IRC 2042.
• Wills drafted with the cliff in mind. We review how gifts to a spouse, to children, and to charity interact with the New York taxable estate. Wills are signed with the traditional formalities of EPTL 3-2.1: signed at the end, with two witnesses, in a continuous ceremony. New York has enacted electronic wills, but that law does not take effect until December 12, 2027.

Cross-Border and Multi-State Families

Many of our clients own property or accounts outside New York or outside the United States, or have family members living abroad. These situations require planning that looks beyond a single tax return:

• Domicile and venue. Under SCPA 205, a New York domiciliary's estate is handled in the Surrogate's Court of the county where the person was domiciled. Under SCPA 206, when a non-domiciliary leaves property in New York, a proceeding can be brought in the county where the property is located, and the court where the first proceeding is filed keeps jurisdiction.
• Assets in more than one place. Foreign accounts, overseas real estate, and property in other states can each bring their own rules and filings. We coordinate with the client's accountant and with advisors in other countries so that the New York plan and the foreign arrangements fit together.
• Beneficiaries abroad. Gifts and inheritances to relatives in other countries can raise practical issues about trusts, currency, and timing. We discuss these early so the plan works for the people it is meant to benefit.

Where a question depends on foreign law or another state's law, we work with a qualified advisor in that place. Our own advice is limited to New York and federal matters.

After a Death: Estate Tax and Fiduciary Returns

Tax planning continues after a death. Executors and trustees often have to make filing decisions under deadlines:

• Federal Form 706. It must be filed on time if the estate is required to file, and also if the executor wants to elect portability, subject to the Rev. Proc. 2022-32 relief described above.
• New York estate tax. The estate's value is measured against the exclusion for the year of death: $7,350,000 for 2026 deaths and $7,160,000 for 2025 deaths.
• Fiduciary income tax returns. The federal Form 1041 and New York Form IT-205 are due on the 15th day of the fourth month after the close of the tax year. For calendar-year estates and trusts reporting tax year 2025, both were due April 15, 2026. New York Tax Law 657 allows an extension of up to six months.

We work with the estate's accountant on these returns and on the estate administration in Surrogate's Court.

How We Work With You

• Free consultation. We start by learning about your family, your assets, and your concerns.
• Estate inventory. We list your assets, how each one is titled, and who is named as beneficiary, then compare the total with the 2026 New York and federal exclusions.
• Plan design. We explain the options in plain language, including the trade-offs and the timing.
• Documents and funding. We prepare and supervise the signing of wills, trusts, and deeds, and we help you transfer assets into any trust.
• Review over time. Exclusion amounts change every year, and the law can change too. We recommend reviewing your plan regularly and after major life events.

We serve families throughout New York City and Long Island, including Manhattan, Brooklyn, Queens, the Bronx, Staten Island, Nassau County, and Suffolk County.

Talk to a New York Estate Tax Planning Attorney

If your estate is close to the New York exclusion, or you are not sure where it falls, it is better to plan now than to find out during administration. Call (212) 518-3868 or request a free consultation. For more background first, read our New York estate tax cliff guide.

This page provides general information about New York and federal law as of 2026. It is not legal or tax advice for any particular situation. Figures and rules change, so confirm current law before acting.