You may have heard that New Yorkers may be subject to an estate tax depending on the value of their estate when they die. You may also have heard some buzz about recent changes to New York’s estate tax law that sounds favorable to New Yorkers…favorable meaning less tax owed.
What is an estate tax? An estate tax is a tax on the transfer of assets after you die based upon the value of those assets. An estate tax is separate and distinct from income tax. It is, in a sense, a transfer tax. An estate tax will likely include some property on which you have already paid income tax. Moreover, an estate tax is assessed against you (or more accurately, your estate) once you are no longer with us.