2020 Federal Estate Tax Exemption

Effective January 1, 2020, the Federal Estate Tax Exemption is $11,580,000.00 per person, through December 31, 2025. Effective January 1, 2026, the Federal Estate Tax Exemption will sunset and revert back to $5,490,000.00, per person.

  • The Federal “portability” election, permitting a deceased spouse to transfer unused exclusion amounts to a surviving spouse, is unchanged.
  • The rules providing a “step-up” in cost basis to date of death value for capital assets are unchanged.
  • Annual gift tax exclusion amount is $15,000.00 per person
  • The maximum Federal tax rate is 40%.

2020 New York State Estate Tax Exemption

Commencing January 1, 2020, the New York State Estate Tax Exemption amount is $5,850,000.00, per person. However, if an individual dies owning just 5% more than the $5,850,000.00, there is a “cliff” taxing the decedent on the full value of the estate, not just the amount over the exemption amount.

  • No NYS gift tax
  • No portability in NYS
  • The maximum NYS tax rate is 16%.

If you have any questions about the above material or wish to speak to an attorney, please contact Pfalzgraf, Beinhauer & Menzies, LLP at (716) 204-1055. Pfalzgraf, Beinhauer & Menzies, LLP is located at 455 Cayuga Road, Suite 600, Buffalo, NY 14225.

Pursuant to U.S. Treasury Department Circular 230, unless we expressly state otherwise, any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing or recommending to another party any matter(s) addressed herein.

estate planning, estate tax