• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Law Offices of Kobrick and Moccia

Long Island Estate Planning Attorneys

ESTATE, TRUST PLANNING &
ELDER LAW INFORMATION CENTER

Call Now: (800) 295.1917

  • Attend Our Free Webinars
  • Home
  • Our Firm
    • About Our Firm
    • Client Testimonials
    • Meet Our Team
  • Services
    • Blended Family Planning
    • Elder Law
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Guardianship
    • Medicaid Planning
    • Nursing Home Planning
  • Resources
    • Articles
    • Elder Law Resources
      • Commack Elder Law
      • Elder Law Reports
      • Harrison Elder Law
      • Hauppauge Elder Law
      • Rockville Centre Elder Law
      • White Plains Elder Law
    • Estate Planning Definitions
    • FREE Estate Planning Worksheet
    • FREE Seminars
    • Frequently Asked Questions
      • Elder Law
      • Estate Planning
      • Families Without an Estate Plan
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Wills and Trusts
    • Is My Estate Plan Outdated?
    • Legacy Wealth Planning Consultation Form
    • Medicaid Resources
    • Probate Resources
      • Harrison Probate
      • Hauppauge Probate
      • Long Island Probate
    • Probate Checklist
    • Special Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
    • Top Estate Planning Techniques
  • Communities We Serve
    • Nassau County
      • Garden City
      • Lynbrook
      • Malverne
      • Rockville Centre
    • Suffolk County
      • Commack
      • Dix Hills
      • Hauppauge
      • Nesconset
      • Smithtown
    • Westchester County
      • Harrison
      • Mamaroneck
      • Rye Brook
      • White Plains
  • Webinars
  • BLOG
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
Home » Taxes » Do I Have to Pay a New York Inheritance Tax If My Parents Leave Me Their House?

Do I Have to Pay a New York Inheritance Tax If My Parents Leave Me Their House?

June 27, 2016 by Anthony Moccia

New York Inheritance Tax

(Updated on Jan. 1, 2019)

One of the primary reasons for most of us to work hard all of our lives and accumulate assets is so that we can pass those assets down to our children and grandchildren when we die. Knowing we have helped to provide for future generations is a wonderful feeling. If you are fortunate enough to have parents who think that way, and are planning to leave you their house when they are gone, you may be wondering about the practical implications of that gift. Specifically, if you live in the State of New York you may be wondering if you will have to pay New York inheritance tax if your parents leave you their house when the die. Only an experienced New York estate planning attorney can review your specific facts and circumstances and tell you, with certainty, what the tax implications of the gift from your parents will be; however, it may still be beneficial for you to gain a basic understanding of the state and federal taxes that might be levied on the gift.

Federal Gift and Estate Taxes

In the United States, the value of the estate of a decedent, including the value of any gifts made during the decedent’s lifetime, is potentially subject to federal gift and estate tax. This tax, if applicable, must be paid during the probate of the estate and before any assets are transferred to the intended beneficiaries or legal heirs of the estate. Each taxpayer, however, is entitled to exempt up to the lifetime exemption limit which is $11.4 million in 2019. The lifetime exemption is also adjusted annually for inflation. The value of assets that exceed the lifetime exemption limit are then taxed at the rate of 40 percent. By way of example, let’s assume that your father died in 2018, leaving behind an estate valued at $10 million. Assume further that he made gifts during his lifetime valued at $2 million. He would then have $12 million in assets subject to federal gift and estate tax. After his $11.4 million exemption his estate is left with $600,000 subject to the tax. Your father’s estate would owe $240,00 in federal gift and estate tax; however, the tax liability would have to be paid out of estate assets prior to any assets being transferred out of the estate. Therefore, by the time you received the house he gifted you, all federal gift and estate tax will already have been paid.

We Can Help!  Call 800-295-1917 or contact us online.

State Inheritance and Estate Taxes

Although people use the terms “inheritance tax,” “death tax,” and “estate tax” interchangeably, they do not actually all have the same meaning. An “estate tax” or “death tax” refers to a tax on the value of assets you gifted during your lifetime or at the time of your death. Your estate is responsible for paying the tax. An “inheritance tax” is a tax on the value of a gift you inherited and is paid by the beneficiary of the gift. Not all states impose inheritance and/or estate taxes.

States with some type of estate tax include:

  • Washington
  • Oregon
  • Minnesota
  • Illinois
  • Tennessee
  • New York
  • Maine
  • Massachusetts
  • Rhode Island
  • Connecticut
  • New Jersey
  • Delaware
  • Maryland
  • District of Columbia

States that impose some type of inheritance tax include:

  • Nebraska
  • Iowa
  • Kentucky
  • Pennsylvania
  • New Jersey
  • Maryland

Attend a FREE Estate Planning Seminar.

State Inheritance and Estate Taxes

How Does New York’s Estate Tax Work?

For deaths in 2019, New York taxes estates valued at more than $5.49 million. This means that even if your father’s estate doesn’t owe federal gift and estate taxes because it is not valued above the lifetime exemption amount of $11.4 million, it could owe New York estate taxes if it is valued above the $5,490,00 threshold. Although the tax rate is less than the 40 percent federal rate (New York estate tax rates range from 3.06% percent to 16 percent), the estate could still owe more in state taxes than federal taxes because New York taxes the entire estate if the estate qualifies to pay estate taxes. At the federal level, only the amount of the estate that exceeds the lifetime limit is taxed.

Will You Owe Any Taxes?

Although your father’s (or mother’s) estate could be subject to both federal and New York State estate taxes, both would have to be paid before the house is transferred to you. New  York is not one of the few states with a true inheritance tax, meaning that whatever gifts you receive from your parents’ estates will be tax-free gifts to you.

If you have additional questions or concerns regarding federal or state estate or inheritance taxes please join us for one of our free estate planning seminars,  or contact the experienced New York estate planning attorneys at The Law Offices of Kobrick & Moccia by calling 800-295-1917 to schedule your appointment.

  • Author
  • Recent Posts
Anthony Moccia
Anthony Moccia
Anthony Moccia is an attorney and partner at The Law Offices of Kobrick & Moccia.His practice focuses on estate planning and elder law.He is a member of the New York State and Nassau County Bar Associations.He frequently presents free seminars on wills & living trusts to area residents and his seminars are said to be “informative, entertaining & easy to understand.”
Anthony Moccia
Latest posts by Anthony Moccia (see all)
  • “Last Will and Testament” Origin - April 1, 2021
  • Do I Need a “Durable” Power of Attorney? - April 2, 2020
  • Joint Tenancy Pros and Cons - March 31, 2020

Filed Under: Taxes

Other Articles You May Find Useful

Harrison asset protection attorneys
Protecting Your Estate from Uncle Sam
Hauppauge estate planning attorneys
Hauppauge Estate Planning Attorneys Explain Federal Gift and Estate Taxes
Law Offices of Kobrick and Moccia
Do I Pay Taxes When Someone Leaves Me Money?
Law Offices of Kobrick and Moccia
Estate Tax Parameters Set for 2013
Law Offices of Kobrick and Moccia
Portability Still in Place in 2013

Primary Sidebar

Law Offices of Kobrick and Moccia

Download our free estate planning worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

GARDEN CITY

1305 Franklin Avenue Suite 170
Garden City, NY 11530
United States (US)
Phone: (516) 248-9500
Fax: (516) 248-7606

HAUPPAUGE

150 Motor Parkway Suite 401 (Regus)
Hauppauge, NY 11788
United States (US)
Phone: (631) 941-3400
Fax: (516) 248-7606

HARRISON

600 Mamaroneck Avenue, 4th Floor
Harrison, NY 10528
United States (US)
Phone: (914) 701-0777
Fax: (516) 248-7606

MAP

kobrick_sidbr_map

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 5:00 PM

Footer

footer-logo
  • Facebook
  • LinkedIn
  • Twitter

The information on this Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Kobrick and Moccia, Attorneys at Law. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

Law Offices of Kobrick and Moccia
Attorney Advertisement
© 2023 American Academy of Estate Planning Attorneys, Inc.