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Attention, New York parents: the three-year rule that can turn a gift to your children into an estate tax bill on their inheritance

New York has no gift tax, but large gifts made in the three years before a parent’s death are added back to the estate, and that can push families over a costly tax.

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Attention, New York parents: the three-year rule that can turn a gift to your children into an estate tax bill on their inheritance
Lo esencial

New York has no gift tax, but large gifts made in the three years before a parent’s death are added back to the estate, and that can push families over a costly tax.

  • But according to the New York State Department of Taxation and Finance, large gifts can still come back into play when the person who made them dies
  • In practice, that means adding the amount of each gift above the federal annual exclusion, which in 2026 is $19,000 per recipient
  • But if the estate goes more than 5% over that limit, above $7,717,500, the exemption disappears completely, and the entire estate is taxed from the first dollar
  • New York’s estate tax rates go up to 16% How families can plan ahead of the inheritance The key, according to estate planning specialists, is timing: - Give earlier

New York has no gift tax, but large gifts made in the three years before a parent’s death are added back to the estate, and that can push families over a costly tax.

Fuente: El Cronista. Para leer la nota completa:

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Fuente: El Cronista|Fuente primaria|Editado por Tempranísimo IA

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