New York Estate Planning Laws

Estate & Inheritance Tax

New York imposes a state estate tax. The exemption threshold is $6.9M with a top rate of 16%. Estates below the exemption amount are not subject to state estate tax. This is in addition to the federal estate tax.

New York does not impose an inheritance tax.

Probate Process

New York uses a formal probate system. Estates valued below $50,000 may qualify for simplified small estate procedures, such as a small estate affidavit, which avoids full probate.

Elective Share: The surviving spouse may elect to take the greater of $50,000 or one-third of the net estate.

Will Requirements

In New York, a valid will requires:

• The testator must be at least 18 years old and of sound mind
• The will must be in writing
• The will must be signed by the testator (or by another person at the testator's direction)
• 2 witnesses must sign the will

Holographic (Handwritten) Wills: New York does not recognize holographic (handwritten) wills. A will must be properly witnessed to be valid.

Self-Proving Affidavit: Notarization is required for a self-proving affidavit, which allows the will to be admitted to probate without witness testimony.

Digital/Electronic Wills: Not currently authorized under state law.

Power of Attorney

New York provides a statutory power of attorney form that is widely accepted by financial institutions and government agencies.

A durable power of attorney remains effective if the principal becomes incapacitated. This is a critical estate planning document for New York residents.

Medicaid Planning

New York follows the federal Medicaid look-back period of 60 months (5 years). Any transfers of assets for less than fair market value made within this period before applying for Medicaid may result in a penalty period of ineligibility.

Planning for potential long-term care needs should begin well in advance of the look-back period. Consult with an elder law attorney in New York for strategies specific to your situation.