10. Planning Remains Critical to Minimize New York Estate Tax

The 2024 New York estate exemption amount has increased to $6.94 million. Since the benefits of the exemption are phased out for estates between 100% and 105% of the exemption amount and estates that exceed 105% are taxable from dollar one (N.Y. Tax Law §952(c)(1)), planning to bring estates in that range below the exemption amount can produce significant tax savings.

Because the New York exemption is not portable between spouses, it is also important to utilize the exemption amount of the first spouse to die, for example with credit shelter or disclaimer trust planning, otherwise it will be lost. Gifting up to the federal exemption amount ($13.61 million in 2024) to reduce the New York estate is a popular technique because, if the donor survives three years, those gifts will not be added back to the New York estate (N.Y. Tax Law §954(a)(3)).

9. Marriage Occurs When Legal Requirements Met; Not Individual Determination

In SF v. JS, 2023 NY Slip Op. 51033 (U), Sup. Ct. N.Y. Co, husband claimed no valid marriage existed because the wedding certificate was never filed, despite the couple having applied for a marriage license, celebrated a religious wedding ceremony before 200 guests, cohabited, held themselves out as a married couple and had a child. Husband had refused to file the wedding certificate until wife signed a prenuptial that the parties started negotiating before the wedding but never executed.