About Inheritance and Estate Tax
What You May Not Know
When a person dies, the state or federal government may impose a tax on his or her estate. This is referred to as estate tax. Inheritance tax is similar but is imposed based upon the amount of money that an heir receives from the estate. New York does not impose an inheritance tax. The state does, however, impose estate taxes in certain situations.
Our lead attorney at Melnik Law Group, PLLC can help if you are a beneficiary or are considering your options in developing an estate plan. It is important to get more information about how your inheritance or a loved one's estate will be affected by taxes. This issue should also be considered if you are working on establishing a life care plan that protects your
assets and ensures your estate is distributed as you see fit. There may be ways to avoid paying estate taxes by establishing a trust or by dividing your assets to ensure the amount received is lower than the amount that allows for an estate tax exemption.
About Estate Tax in New York
You may need to file a New York estate tax return in certain situations:
- If the decedent lived in New York at the time of his or her death and the total estate exceeds $1 million;
- If the decedent did not live in New York at the time of death, but the estate includes property located in New York and the estate exceeds $1 million; or
- If the decedent was not a resident or citizen of the U.S. but the estate includes property located in New York and the estate is required to file a federal tax return.
Find out more about planning to address estate taxes and what can be done if you are inheriting money that may be affected by state or federal taxes. Contact the legal team at our firm today or email us and we will be more than happy to address any questions or concerns that you may have..