If individuals are managing the affairs of someone who passed away in New York, they may naturally wonder whether an estate tax return is necessary. The answer varies in accordance primarily with the value of the estate and whether the decedent owned property in the state.
When Filing Is Required
For 2025, a New York State Estate Tax Return should be filed if the gross value of the estate is over $7.16 million. This figure covers all assets owned at the time of death, as exemplified below:
- Real estate (homes, commercial properties)
- Bank accounts and investment portfolios
- Business interests and private company shares
- Vehicles or valuable personal items, as well as art collections
- Life insurance payouts payable to the estate
Even estates that exceed the threshold by a minor amount are subject to the NY estate tax filing requirements. This includes estates of non-residents who owned real or tangible property within New York.
Estate Tax vs. Inheritance Tax in New York
Many people confuse these two terms. However, it is true that they’re not the same. New York imposes an estate tax indeed, which is paid by the estate before allocations are made. There is no inheritance tax in New York. In other words, beneficiaries won’t pay taxes on what they receive.
Filing Essentials
The executors or personal representatives are responsible for preparing Form ET-706 and submitting it by the required deadline—nine months from the date of death. An extension to file can be requested leveraging Form ET-133. Yet, any tax due must be paid on time to prevent penalty amounts. The following subjects should be taken into consideration:
- Review the full Form ET-706 instructions
- Use a proper estate tax return checklist NY to stay organized
- Check whether federal Form 706 also applies
If you are not sure whether filing is necessary, a qualified CPA who has expertise in the New York estate tax thresholds as well as the process can present professional assistance. Contact Dimov NYC CPA today for maximum clarity and full compliance.