Estate, Gift and Trust Provisions in New York State 2014-15 Budget: New York State 2014-15 Budget Makes Changes to the Taxation of Estates and Gifts and the Income Taxation of Certain TrustsSullivan & Cromwell LLP - April 4, 2014
On March 31, 2014, Governor Andrew Cuomo signed into law the New York State 2014-15 Budget (the “Budget”). This memorandum describes the changes made by the Budget to the taxation of estates and gifts and the income taxation of certain trusts. We will be distributing a separate memorandum addressing the corporation, bank and other tax provisions in the Budget, which may be obtained by following the instructions at the end of this memorandum.
The Budget increases the estate tax exemption (although, as under prior law, the exemption is effectively eliminated entirely for high net worth estates). The Budget also repeals the New York generation-skipping transfer tax and increases taxable estates by certain gifts made within three years of death. Finally, the Budget changes the income tax treatment of “exempt resident trusts” and so-called “ING” trusts.