The New York estate tax cliff
New York's estate tax exemption is uniquely structured.
An $8M estate can owe roughly $670,000 in NY estate tax that a $7.5M estate owes nothing on.
New York Estate PlanningLegacy Counsel
New York Estate Planning Attorney
New York imposes its own estate tax with a 'cliff' that can claw back the entire state exemption if an estate exceeds it by more than 5%.
Key Points
- ◆NY state estate tax exemption is roughly $7.16M (2025–2026); estates over 105% of the exemption lose it entirely (the 'cliff')
- ◆No state gift tax, but gifts made within 3 years of death are clawed back into the NY estate
- ◆Surrogate's Court probate is slow — uncontested estates often take 6–12 months
- ◆NY enforces the rule against perpetuities — dynasty trusts must be sited elsewhere (DE, NV, SD)
- ◆ILITs, SLATs, and lifetime gifting strategies are core tools to manage the NY cliff
Probate in NY Surrogate's Court
Surrogate's Court probate in New York is notoriously slow.
What we typically build for NY families
Core NY plans pair a pour-over will with a revocable living trust to avoid Surrogate's Court.
Frequently Asked
What is the New York estate tax exemption in 2026?+
Approximately $7.16M per individual, indexed annually for inflation.
What is the New York estate tax cliff?+
If your taxable estate exceeds 105% of the NY exemption, you lose the entire exemption and the full estate is taxed from the first dollar at rates up to 16%.
Does NY have a state gift tax?+
No, New York has no separate gift tax.
Can I create a dynasty trust in New York?+
Not effectively.
Next Step
Talk to Legacy Counsel.
Fixed-fee estate planning for clients in New York, New Jersey, and Ohio.
Drew Jacobs is licensed in New York, New Jersey, and Ohio. Nothing on this page constitutes legal advice or an offer to represent you in a jurisdiction in which we are not licensed.
Prospective Client Disclaimer. Submitting this form does not create an attorney-client relationship. Do not send confidential or time-sensitive information until we have signed an engagement letter. We will review your submission and follow up to discuss whether we can represent you. By submitting, you consent to be contacted about your inquiry.