2014 CHANGES TO NEW YORK'S ESTATE, GIFT, AND TRUST INCOME TAXES

Effective April 1, 2014, the 2014-201 5 budget legislation (the "Executive Budget") makes significant changes to New York's estate tax and the income taxation of certain trusts.  These changes will have a major effect on estate planning for both New York residents and non­ residents.  Although these changes provide some tax relief for the moderately wealthy, they will clearly have a negative effect on the very wealthy, who will likely see an increase in their estate and income taxes.

Estate Tax Exclusion Increased - but only for Some.  The Executive Budget increases New York's basic exclusion amount ($1 million per decedent prior to April 1, 2014) to $2.0625 million per decedent as of April 1, 2014, with gradual increases annually until January 1, 2019 when the basic exclusion amount will reach $5.25 million.  Thereafter, it will be indexed for inflation, which should link New York's basic exclusion amount to the federal amount (presently $5,340,000, but also indexed for inflation).

Please see complete details at www.nysba.org/IncomeTaxChanges