I have read several articles from 2014 about losing all exemptions from NYS estate tax if the estate exceeds the exemption. The articles all say it is outrageous and has to be fixed. But I have found nothing from 2015. Any recent developments or likely future changes in this?
In the first part of 2015, the changes made to the estate tax exemption in the first part of 2014 were confirmed. The estate tax exemptions will continue to grow each year until it reaches the same amount as the federal exemption in 2019. It currently stands at $3125K until 3/31/16 when it goes up to $4187.5K for the next 12 month period.
Okay, but what I read said that if you have over the exemption, say $3500k, then you lose the exemption completely. Is that going to continue?
Sorry for misunderstanding your query. The 2014 changes that were confirmed in 2015 did not change the method for computing the applicable credit. So... yes the applicable credit becomes zero when the NY taxable estate reaches 105% of the exclusion. Put simply... once your estate exceeds the exclusion, the exclusion starts to disappear and becomes zero when the estate is 105% of the exclusion.
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