New York’s estate tax exclusion threshold is approximately $7.35 million in 2026, and it includes what is commonly referred to as the “tax cliff.” Estates exceeding 105% of the threshold—approximately $7.717 million—lose the exemption entirely, making the estate taxable from the first dollar at rates of up to 16%.
Independent valuations of real estate, business entities, and fund holdings are essential to determine whether an estate falls below the cliff or qualifies for formulaic charitable bequest strategies, including “Santa Clause” provisions. ¹
New York does not allow portability of a deceased spouse’s unused exemption. Capturing the first-to-die spouse’s exemption through Credit Shelter or Bypass Trusts requires precise date-of-death valuations across closely held assets and real property. ²
Although New York has no standalone gift tax, taxable lifetime gifts made within three years of death are clawed back into the gross estate for New York estate tax calculations.
At Marshall & Stevens, we provide IRS-compliant valuation reports for Form 709 filings that support valuation discounts, including discounts for lack of control (DLOC) and lack of marketability (DLOM), while establishing defensible asset baselines at the time of transfer. ³
In addition to tax reporting, our Gift & Estate team routinely provides forensic accounting, asset tracing, trustee account reviews, and expert witness testimony for high-net-worth estate litigation.
Independent valuation opinions, forensic accounting, and litigation support help address the financial issues that arise in these matters.
Statutory Footnotes & References
