NY Estate Taxes


D

don

My elderly parents took out an insurance policy maybe 20 years ago.
That policy will pay ~$100 K, to each of five siblings - after both
Mom and Dad have died. My mother is deceased, I do not exect Dad to
live another year?

My father may have another $550 -> 600K in assets - consisting of a
house, CD's, several mutual funds and two annuity's. All of those
assests were titled to transfer (sorry I do not know the specific
terminology) equally to the 5 siblings, upon Dad's death.

I am unaware of NY Estate taxes! (I am confident that NO IRS estate
taxes will be due). With the above assets, will there be any NY State
Estate taxes due?

NOTE: The lawyer whom my folks had draw up their will is recently
deceased. I have not yet had any contact with the lawyer whom now "has
my parent's file".

-don
 
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K

Katie in San Diego

My elderly parents took out an insurance policy maybe 20 years ago.
That policy will  pay ~$100 K, to each of five siblings - after both
Mom and Dad have died. My mother is deceased, I do not exect Dad to
live another year?

My father may have another $550 -> 600K in assets - consisting of a
house, CD's, several mutual funds and two annuity's. All of those
assests were titled to transfer (sorry I do not know the specific
terminology) equally to the 5 siblings, upon Dad's death.

I am unaware of NY Estate taxes! (I am confident that NO IRS estate
taxes will be due). With the above assets, will there be any NY State
Estate taxes due?

NOTE: The lawyer whom  my folks had draw up their will is recently
deceased. I have not yet had any contact with the lawyer whom now "has
my parent's file".

-don

--
The New York estate tax applies to any estate with a value for federal
estate tax purposes of more than $1 million. Life insurance proceeds
are includable in the estate if the estate is the beneficiary, if the
decedent had any incidents of ownership in the policy -- such as the
power to change beneficiaries, to borrow against the value of the
policy, to surrender or cancel the policy, etc., or if the decedent
had a reversionary interest in the policy. (IRC Sec. 2042; Reg. Sec.
20.2042-1(c)(2). NY defines the taxable estate in accordance with the
federal estate tax law.)

Joint tenancy property is includable except to the extent that other
tenants have a cost basis in the property.

Whether your dad's estate will be subject to NY estate tax depends on
a lot of detailed facts. His attorney will have access to the
information and can advise you.

Katie in San Diego
 
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R

removeps-groups

The New York estate tax applies to any estate with a value for federal
estate tax purposes of more than $1 million.  Life insurance proceeds
are includable in the estate if the estate is the beneficiary, if the
decedent had any incidents of ownership in the policy -- such as the
power to change beneficiaries, to borrow against the value of the
policy, to surrender or cancel the policy, etc., or if the decedent
had a reversionary interest in the policy.  (IRC Sec. 2042; Reg. Sec.
20.2042-1(c)(2).  NY defines the taxable estate in accordance with the
federal estate tax law.)
What is "if the decedent had a reversionary interest in the policy"?
 

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