Welcome 2026! The IRS and New York State have released updated estate and gift tax exclusion amounts. These changes present an important opportunity to review your estate plan—particularly if your assets approach or exceed these thresholds. With thoughtful planning, it may be possible to reduce or even eliminate estate and gift taxes.
Federal Estate and Gift Tax Exemption
For individuals who die in 2026, the federal estate and gift tax exemption has increased from $13,990,000 in 2025 to $15 million per individual. This exemption applies to lifetime gifts as well as transfers at death. With proper planning at the time of the first spouse’s death, any unused exemption can be transferred to a surviving spouse, allowing married couples to preserve significant wealth free of federal estate tax.
New York State Estate Tax Exemption
New York’s estate tax exemption has increased from $7,160,000 in 2025 to $7,350,000 per person in 2026. However, New York’s estate tax “cliff” remains an important consideration. If an estate exceeds the $7.35 million exemption by more than 5%, the exemption is lost, and the full value of the estate becomes subject to New York estate tax.
New York Gift Tax Rules
While New York does not impose a separate gift tax, gifts made within three years of death are added back into the estate when determining whether New York estate tax is owed. This makes careful timing and strategic planning essential.
Annual Federal Gift Tax Exclusion
The annual federal gift tax exclusion remains unchanged for 2026 at $19,000 per recipient. You may gift up to this amount per person, per year, without incurring gift tax or needing to file a gift tax return.
Planning Opportunities for New Yorkers
If your assets exceed—or are approaching—the New York estate tax exemption, now is an excellent time to consider incorporating tax savings strategies into your estate plan.
Keep in mind that ALL of your assets, including, but not limited to, life insurance and retirement accounts, are counted as part of your taxable estate. If your estate is close to these limits, there are many effective planning options available. We are here to help you evaluate your circumstances and develop a strategy tailored to your goals.
Contact us by phone or email to schedule a consultation and begin planning with confidence.
