ESTATE TAX PLANNING
Both the federal government and New York State impose a tax on property that you pass at death. However, in both cases there has been a high exemption in recent years.
New York State’s exemption for people who die in 2022 is $6,020,000, up from $5,930,000 in 2021. Note that in NY, if the estate is worth more than 105% of the exemption amount, the entire estate is subject to tax – there is no benefit for the exemption amount.
The federal estate tax exemption for people who die (or make gifts) in 2022 is $12,060,000, up from $11,580,000 in 2021. The tax rate is 40%, and with proper planning, few people pay estate tax.