Contact:
Alison Arden Besunder
212-695-8100, ext. 289
[email protected]
What are Estate Taxes? How Do They Work?
Estate taxes are imposed on the assets in your gross estate when you die.
These taxes are different from income taxes that might be owed in the year that you die. They are also different and separate from probate fees, which might be owed to the court in which your will is probated.
Estate taxes must be paid within 9 months of your date of death, whether or not the estate has been finalized, and whether or not the estate tax return has been filed.
Who Pays the Estate Tax?
The estate pays the estate tax if the gross value is more than the exempt amount set by Congress or New York State (or the state you live in). Some states have an “inheritance tax” instead of or in addition to an estate tax. The inheritance tax is imposed on the recipient of the bequest, rather than on the gross estate.
What is the Estate Tax Exemption?
The federal estate tax exemption is $12.92 million (annually adjusted for inflation). This may be sufficient to protect all of your assets from federal estate tax. However, the New York State estate tax exemption is $6.58 million as of 2023.
Individuals with insubstantial assets but more than the state exemption in life insurance may be surprised to discover that their entire estate – including the life insurance – will be subject to as much as 16% of estate taxes by New York State.
Goetz Fitzpatrick LLP has been offering clients insightful solutions throughout the New York Metropolitan area since 1967. The firm provides its clients with expertise in the areas of Construction and Real Estate, Trusts & Estates Administration & Litigation, Commercial Litigation, Corporate, Bankruptcy, and Labor & Employment. The firm’s office is located at One Penn Plaza, Suite 3100, New York, NY 10119, Telephone 212 695 8100, [email protected], www.goetzfitz.com. You can learn more about Goetz Fitzpatrick on: LinkedIn | X (Twitter) | Soundcloud | YouTube | Facebook | Instagram
