We previously alerted you to proposed legislation affecting New York estate tax law, the tax treatment of gifts by New York residents, and New York income taxation of certain trusts. This month Governor Cuomo signed final legislation into law, which included some changes from the initial proposal. Some of the important provisions of the final legislation are highlighted below.

Provisions of interest to all New Yorkers -

1) Increase in New York Estate Tax Exemption Amount:

The New York estate tax exemption (i.e., the amount an individual may pass at death free of New York estate tax), which was previously $1,000,000 per individual, has been immediately increased to $2,062,500 for individuals dying on or after April 1, 2014, and is scheduled to increase each year over the next five years so that it is equal to the Federal estate tax unified credit amount (currently, $5,340,000 per individual and indexed for inflation) for estates of individuals dying on or after January 1, 2019.