An estate tax return must be filed if the total value of a decedent’s estate is greater than $13,990,000 in 2025 and greater than $15,000,000 in 2026. The return must be filed within nine months of the decedent’s date of death unless a six-month extension to file the return was approved by the IRS. In 2025, the portability provision of the federal estate tax exemption remains in effect, allowing a surviving spouse to use their deceased spouse’s unused federal estate tax exclusion amount (DSUE). To benefit from portability, the executor of the deceased spouse’s estate must file a federal estate tax return (IRS Form 706) even if no estate tax is owed. This return is generally due within nine months of the date of death, although a special five-year extension may be available for estates not otherwise required to file.
For 2025, the New York (NY) State estate tax exemption is $ million per person. For 2026, the NY estate tax exemption will increase to $7,350,000 per person. Estates valued at or below this amount are generally exempt from NY state estate tax.
NY law includes a “cliff” provision whereby if an estate’s value exceeds 105% of the exemption amount (approximately $ million in 2025), the entire estate becomes subject to taxation, not just the amount over the threshold.
Unlike the federal system, the NY estate tax exemption is not portable between spouses. This means that a deceased spouse’s unused exemption cannot be transferred to the surviving spouse, making proper estate planning crucial for married couples. While NY does not have a gift tax, any taxable gifts made within three years of a resident’s death are included in the decedent’s estate for state estate tax calculation purposes.