New York is one of 12 states that tax estates of decedents people who owned property in the state. Now besides that, there are other things you need to know when estate planning.
New York doesn’t charge inheritance tax, but the estate tax comes with one big provision. Though December 31st of this year there is a $5.5 million exemption which means if the value of the estate is less than $5.5 million, the estate tax is waived.
That tax is in addition to the federal estate tax that hits individual estates worth more than $11,180,000 between gross assets and prior taxable gifts to pay within nine months of the individual’s death. You can get a six-month extension. But chances are you don’t have an estate worth $11 million. Only a few thousand people do.
New York estate property categories
There are only two categories in New York: personal property and real property, Real property is what you probably think it is; land and houses. Personal property is everything else. New York is not a community property state so the surviving spouse doesn’t automatically inherit the deceased’s property.
It does, however have what they call a spousal right of election when deciding on inheritances for spouses. This law states that should a spouse pass away, his or her spouse will receive an “elective share” of $50,000 or one-third of the decedent’s estate. Should a spouse not receive this elective share, he or she has the right to file for it as long as it’s within a six-month window after an executor for the estate has been named.
Importance of a will
If you die with a will in New York things are normally pretty straight forward, but it will still need to go through probate and people can challenge the will. There are ways to avoid probate and the Law Offices of Jeffrey Weinstein can help you avoid probate.
The State entitles surviving spouses who have disinherited them to a piece of their estate. But this is limited to non-probate assets, such as property held in joint tenancy or a jointly held brokerage account paid on death to beneficiaries.
Dying without a will
An administration proceeding is the most common legal event that occurs in New York if you die without a valid will, but you own property. If when you pass away you don’t have a will, your estate consists of either jointly-owned or no real property, and your personal property is worth less than $30,000, you must file as a small estate.
Without a will, if you only own real property, it goes to your nearest relative.
There are other issues involve in estate planning and the law offices of Jeffrey Weinstein 347-305-8752 can help you navigate the process to lessen the hassle for you and your heirs.