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NY Estate Taxes

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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don
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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

Reply to
Katie in San Diego

What is "if the decedent had a reversionary interest in the policy"?

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