Rochester Estate Tax Attorneys

Experienced Rochester estate tax attorneys assisting with New York Estate, Gift and Income Tax Guidance

The New York State estate tax includes all property that a person owned, controlled, or had an interest in on the date of his or her death.

Estate Tax Filing requirements:

1. Your estate is required to file a New York State estate tax return when the total of your federal gross estate, plus the federal adjusted taxable gifts and specific exemption exceeds $4,187,500 and the individual was either:
   • Living and registered in the state at the time of death
   • A citizen of the United States at the time of death but not a state resident, whose estate includes real or tangible personal property in the state.
2. For someone who was not a citizen of the U.S. at the time of death, the estate must file an estate tax return in New York if the estate includes tangible personal property located in the state and the gross estate located in the U.S. exceeds the filing limit. The filing limit is $60,000 reduced by the sum if:
   • The specific gift tax exemption made applicable to certain gifts made in 1976.
   • The full total of taxable gifts made after 1976 that are not included in the gross estate.

When Should I File and Pay Estate Taxes

• Estates must file and pay the tax using Form ET-706, New York State Estate Tax Return, within nine months after the decedent’s date of death.
• Estates must submit a completed Federal Form 706, United States Estate Tax Return with the NYS estate tax return, even if the the IRS does not require you to file a federal estate tax return.
• Estates may apply for an extension of time to file the return and/or pay the tax using Form ET-133, Application for Extension of Time to File and/or Pay Estate Tax. Extensions of time to file may not exceed six months. In addition, an extension of time to pay may be granted for up to four years in cases where payment within 9 months of death results in undue hardship to the estate. In either case, interest will be due.
• You can incur Penalties for late filing or payment.

New York Estate Tax Rates

New York’s estate tax is created by using a graduated rate schedule. Form ET-706 lists the complete rate schedule. For details, see Form ET-706-I, Instructions for Form ET 706 New York State Estate Tax Return.

New York Estate Tax Waivers and Releases:

• When authorization is required for the release of personal property in an estate, it can be referred to as an estate tax waiver or a transfer consent. New York State does not require waivers for estates of anyone who passed away on or after February 1, 2000. See Publication 603, Estate Tax Waivers for details.
• Authorization to transfer real property is referred to as a release of lien. This release is necessary for all dates of death. For more information see Form ET-30, Application for Release(s) of Estate Tax Lien and Form ET-117, Release of Lien of Estate Tax – Real property or cooperative apartment.
• A waiver of citation is used for an estate to get court approval for a specific action and must be approved by the Tax Department. See Form AU-67, Instructions to Request a Waiver of Citation and Consent for more information.

You may need to provide the following for Estate Taxes:

• Copies of the death notice
• Copies of the decedent’s will and/or relevant trusts
• Real Estate Appraisal Copies
• Letters of appointment for executors or administrators
• Copies of relevant documents regarding litigation involving the estate
• Documentation of unusual items shown on the return (partially included assets, losses, near date of death transfers, others)

The Marriage Equality Act

On July 24, 2011 the Marriage Equality Act took effect.  It provides all marriages, including same-sex couples to be treated equally under the laws of New York State.  This Act amends New York’s law to recognize all legally performed marriages between same-sex and heterosexual couples, even if the marriage did not take place in New York.

The Marriage Equality Act applies to all taxes administered by the Tax Department. As a result, any references in the Tax Law or department documents to:

• Spouse or married individuals can include a person in a marriage with a same-sex spouse.
• Husband, wife, and spouse should be read as gender neutral to reflect both heterosexual and same-sex couples.

Dedicated Rochester Estate Tax Attorneys

At Friedman & Ranzenhofer, our Rochester Estate Tax Attorneys provide WNY clients with a complete range of estate and gift planning services, from providing advice on appropriate estate planning structures to preparing the necessary estate and gift tax returns, and advocating on your behalf in the event of a tax controversy.

At Friedman & Ranzenhofer, our Rochester Estate Tax Attorneys pride themselves on providing knowledgeable, compassionate, and strong legal advice. Contact our skilled Rochester Estate Tax Attorneys at Friedman & Ranzenhofer to schedule a legal consultation to learn how we can help you prepare and finalize your estate and gift tax returns.