Cornerstone Guide

Estate Planning & Wealth Transfer in New York, New Jersey & Ohio

Trusts, asset protection, and tax-efficient wealth transfer for families with complex estates. This guide covers the state-specific rules that matter most.

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How does estate planning differ in New York, New Jersey, and Ohio?

Each state has its own trap. New York has an estate-tax cliff that can tax the entire estate if it exceeds 105% of the state exemption. New Jersey kept its inheritance tax after repealing the estate tax. Ohio has no state estate tax but distinct probate rules. The federal basic exclusion amount is approximately $15M per individual in 2026 under current federal law (subject to change) — and several state-level traps apply well below that threshold.

How do NY, NJ, and OH estate taxes compare?

Factor	New York	New Jersey	Ohio
State Estate Tax	Yes, with cliff at 105% of exemption	Repealed in 2018	Repealed in 2013
Inheritance Tax	No	Yes, 11–16% by beneficiary class	No
Probate Process	Surrogate's Court; can be lengthy	Surrogate's Court; relatively streamlined	Probate Court; TOD designations available
Income Tax on Trusts	Taxes trusts administered in NY or with NY trustees	Taxes trusts with NJ grantor or resident trustees	Taxes trusts with OH resident beneficiaries
Key Planning Concern	Estate tax cliff; trust situs planning	Inheritance tax for non-exempt beneficiaries	Federal estate tax; probate avoidance

Which trust structures work best for HNW families?

Revocable Living Trust

Avoids probate and provides privacy. The grantor retains control during their lifetime. Does not provide estate tax benefits but simplifies asset transfer at death.

Best for: Probate avoidance, privacy, incapacity planning

Irrevocable Life Insurance Trust (ILIT)

Removes life insurance proceeds from the taxable estate. The trust owns the policy, and proceeds pass to beneficiaries free of estate tax. Requires careful administration of Crummey notices.

Best for: Estate tax reduction, liquidity for estate expenses

Grantor Retained Annuity Trust (GRAT)

Transfers future appreciation of assets to beneficiaries with minimal gift tax cost. The grantor receives annuity payments for a set term, and remaining assets pass to beneficiaries at the end.

Best for: Wealth transfer with reduced gift tax exposure

Dynasty Trust

Designed to last multiple generations while avoiding estate tax at each generational transfer. Uses the generation-skipping transfer (GST) tax exemption. Requires careful state selection for trust situs.

Best for: Multi-generational wealth preservation

Domestic Asset Protection Trust (DAPT)

Protects assets from future creditors while allowing the grantor to remain a discretionary beneficiary. Not available in all states; Ohio is among the states that permit self-settled asset protection trusts.

Best for: Creditor protection, wealth preservation

Qualified Personal Residence Trust (QPRT)

Transfers a primary residence or vacation home to beneficiaries at a reduced gift tax value. The grantor retains the right to live in the property for a set term.

Best for: Reducing taxable estate; transferring real estate efficiently

What is the federal estate tax exemption in 2026?

Under the 2025 federal legislation taking effect in 2026 (commonly called OBBBA), the federal estate and gift tax basic exclusion amount is approximately $15 million per individual ($30 million per married couple), indexed for inflation. The earlier scheduled reduction tied to the Tax Cuts and Jobs Act of 2017 has been superseded.

While that level is permanent under current law, every federal tax provision remains subject to future legislative change. State-level estate and inheritance taxes — particularly New York's estate tax with its cliff at 105% of the state exemption, and New Jersey's inheritance tax — continue to drive planning for many families well below the federal threshold.

This is general information, not legal or tax advice. Tax results depend on facts and applicable law in effect at the relevant time; confirm specifics with your CPA and counsel.

Common planning considerations

→ Evaluate state estate or inheritance tax exposure, which often applies far below the federal threshold
→ Review whether irrevocable trusts, ILITs, SLATs, or GRATs may help manage growth out of the taxable estate
→ Reconfirm beneficiary designations, account titling, and trust funding
→ Revisit existing plans periodically as federal and state law change
→ Coordinate any tax strategy with your financial advisor and CPA

What estate planning services do we handle?

Wills and revocable living trusts

Irrevocable trusts (ILITs, GRATs, dynasty trusts)

Powers of attorney and healthcare proxies

Asset protection trust design

Business succession planning

Digital asset and cryptocurrency planning

Guardianship and minor's trust provisions

Charitable giving structures (CRTs, donor-advised funds)

Trust administration and trustee guidance

Estate tax minimization strategies

Multi-state planning for families with residences in NY, NJ, or OH

Coordination with financial advisors and CPAs

Frequently Asked Questions

What is the New York estate tax cliff?

New York imposes a state estate tax with a cliff provision. If a taxable estate exceeds 105% of the state exemption, the entire estate is taxed from the first dollar, not just the amount over the threshold. This makes planning around the cliff essential for New York estates near the exemption amount.

Does New Jersey have an estate tax?

New Jersey repealed its estate tax in 2018 but retains an inheritance tax. The inheritance tax applies to transfers to certain beneficiaries, with rates varying based on the relationship between the decedent and the beneficiary. Spouses, children, and grandchildren are exempt.

How does Ohio handle estate taxes?

Ohio repealed its state estate tax in 2013. However, Ohio estates are still subject to federal estate tax if they exceed the federal exemption. Ohio's probate process and transfer-on-death designations remain important planning considerations.

What is the federal estate tax exemption in 2026?

Under current federal law (the 2025 legislation commonly referred to as OBBBA), the federal estate and gift tax basic exclusion amount is approximately $15 million per individual ($30 million per married couple) beginning in 2026, indexed for inflation. This level is permanent under current law but, like any federal tax provision, is subject to change by future legislation. Planning should not assume the current amount will remain available indefinitely. This is general information, not legal or tax advice — confirm specifics with your CPA and counsel.

Do I need an estate plan if my estate is under the exemption?

Yes. Estate planning covers more than tax minimization. Powers of attorney, healthcare proxies, guardianship designations, asset protection trusts, and probate avoidance benefit estates of all sizes.

What trusts should high-net-worth families consider?

Common structures include revocable living trusts for probate avoidance, irrevocable life insurance trusts (ILITs) for estate tax reduction, grantor retained annuity trusts (GRATs) for wealth transfer, and dynasty trusts for multi-generational planning. The right combination depends on estate size, family structure, and objectives.

How do digital assets factor into estate planning?

Digital assets including cryptocurrency, NFTs, social media accounts, and online business accounts require specific planning. Access credentials can be lost permanently without proper documentation, and platform-specific policies vary on account transfer after death.

How much does estate planning cost for high-net-worth families?

Complexity determines cost. A straightforward trust-based plan is a different scope than a multi-entity structure with business succession and generation-skipping provisions. All engagements are quoted as fixed fees after an initial strategy call.

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Fixed-fee estate planning for high-net-worth families. Licensed in New York, New Jersey, and Ohio.

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