Long Island Estate Planning Attorney Seth Schlessel Provides Insight on New York State Gift Tax

Long Island Estate Planning Attorney Seth Schlessel Provides Insight on New York State Gift Tax

Long Island estate planning attorney Seth Schlessel (https://www.schlessellaw.com/how-does-new-york-state-gift-tax-work/) of Schlessel Law, PLLC recently published an enlightening article titled ‘How Does New York State Gift Tax Work?’. The comprehensive piece helps shed light on the complex intricacies of gift taxes in New York State and the federal tax implications that Long Island residents should be aware of.

In the first section of the article, Schlessel, a renowned Long Island estate planning attorney, lays out a clear and concise definition of gift taxes. These are financial obligations imposed on an individual’s right to transfer property to another without receiving fair market value in return. Schlessel goes on to explain that while New York state does not impose a gift tax at the state level, federal gift taxes and other limitations still apply.

The Long Island estate planning attorney delves into the specific nuances of the New York gift tax, noting that while there is no direct gift tax imposed, the state employs a provision that indirectly imposes a “de facto” gift tax. This provision includes the value of any gifts made within three years before the taxpayer’s death in the calculation of the New York estate tax.

Schlessel further elaborates, “This three-year look-back provision creates a crucial timing consideration for gift planning, as it requires the donor to survive long enough to ensure that the value of the gift does not contribute to the New York estate tax calculation.”

The article also explains gift tax exclusions and lifetime exemptions in New York. Despite the absence of a state-level gift tax, the federal government imposes a tax on gifts once they exceed a certain amount. In 2023, the annual federal gift tax exemption is $17,000. Additionally, a lifetime gift and estate exemption also applies to each taxpayer, with the 2023 limit set at $12.92 million.

Schlessel emphasizes the importance of understanding these nuances: “Gifting above the annual exclusion doesn’t automatically make an individual liable to pay taxes. It’s crucial to know how to navigate these rules to protect the assets and beneficiaries.”

The article also highlights notable exceptions to the gift tax rule, such as the New York 3-Year Clawback Rule, discusses the role of an estate planning attorney, and explores the potential impacts of legislation on estate planning.

Schlessel underscores the role of an estate planning attorney in securing one’s legacy: “Regardless of the size of their estate, planning for taxes is a crucial aspect of securing a legacy for loved ones. Seeking the assistance of a qualified estate planning attorney can help individuals reduce the hassle and skillfully navigate the legal processes involved in securing their estate.”

For those interested in learning more about the complexities of the New York State gift tax, the article provides an invaluable resource for understanding the nuances of estate planning.

About Schlessel Law, PLLC:

Schlessel Law, PLLC is a premier law firm based in Long Island, New York, focusing on estate planning and related legal services. Founded by top-rated attorney Seth Schlessel, the firm boasts a team of dedicated legal professionals committed to providing quality estate planning services. They work tirelessly to create tailored plans that accommodate their clients’ needs and financial situations, with the ultimate aim of fulfilling their estate planning goals. Schlessel Law, PLLC is committed to providing personalized and effective legal solutions. They help clients protect their assets, plan for the future, and ensure the peace of mind that comes with a well-planned estate.


Youtube Video: https://www.youtube.com/watch?v=0D0PVDtMtic

GMB: https://www.google.com/maps?cid=7387587768064061142

Email and website

Email: seth@schlessellaw.com

Website: https://www.schlessellaw.com/

Media Contact
Company Name: Schlessel Law PLLC
Contact Person: Seth Schlessel
Email: Send Email
Phone: (516) 574-9630
Address:34 Willis Ave Suite 300, Mineola, NY 11501
City: Mineola
State: New York
Country: United States
Website: http://www.schlessellaw.com/