what is the new york state estate tax exemption for 2024

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02-11-2024

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What is the New York State Estate Tax Exemption for 2024?

Planning for your estate is a crucial part of financial security, and understanding state estate tax exemptions is vital. The New York State Estate Tax Exemption, also known as the "estate tax threshold," determines the amount of assets you can pass on to your heirs before taxes kick in. While the federal estate tax exemption remains high, New York State maintains its own, lower exemption.

Here's what you need to know about the New York State Estate Tax Exemption for 2024:

What is the Estate Tax Exemption?

The estate tax exemption is the amount of wealth you can transfer to your heirs before the state levies a tax on the remaining portion.

The New York State Estate Tax Exemption for 2024

For 2024, the New York State Estate Tax Exemption is $6,110,000. This means estates valued at $6,110,000 or less will not be subject to the New York State Estate Tax. For estates exceeding this threshold, the tax rate starts at 8% and can climb as high as 16%.

Important Considerations for 2024

• Inflation: The New York State Estate Tax Exemption is not adjusted annually for inflation, so its real value can decrease over time.
• Federal Estate Tax Exemption: The federal estate tax exemption is much higher than the New York State exemption. Currently, the federal exemption is $12.92 million per person. This means that even if your estate exceeds the New York State exemption, it may still be exempt from federal estate taxes.
• Other Estate Planning Tools: There are many other estate planning tools and strategies you can employ to minimize estate taxes, such as trusts and gifting. Consult a qualified estate planning attorney to explore options tailored to your specific situation.

It is essential to consult with a qualified estate planning attorney to understand how the New York State Estate Tax Exemption applies to your individual circumstances. They can help you develop a comprehensive estate plan that minimizes taxes and ensures your assets are distributed according to your wishes.

Here are some resources that may be helpful:

• New York State Department of Taxation and Finance: [Link to official website]
• American Bar Association: [Link to ABA estate planning resources]

Don't wait to plan for your estate. By understanding the New York State Estate Tax Exemption and consulting with a qualified professional, you can ensure your loved ones inherit the maximum benefit of your hard-earned wealth.