Tax Planning for New York Families and High-Net-Worth Individuals
Key Takeaways for 2026
- Federal estate tax exemption: $15 million per individual under the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025.
- New York estate tax exclusion: $7.35 million per individual.
- Beware the New York estate tax cliff: The state’s estate tax credit phases out when a taxable estate exceeds the exclusion, reaching zero at $7,717,500.
- Advanced planning still matters: Credit shelter trusts, strategic gifting and charitable planning may help reduce estate tax exposure, depending on your circumstances.
Although OBBBA increased the federal estate tax exemption, New York’s substantially lower exclusion can leave significant wealth exposed to state estate taxes. For high-net-worth individuals and families, coordinating federal and state tax planning is essential.
At Pierro, Connor & Strauss, LLC, our attorneys develop sophisticated estate and tax planning strategies tailored to each client’s assets, goals and family circumstances. From credit shelter trusts and wealth transfer strategies to charitable planning and business succession, we help clients evaluate their options, navigate changing tax laws and make informed decisions about transferring wealth efficiently.
With experienced legal guidance, you can take a proactive approach to managing potential tax exposure and structuring your estate to support your long-term objectives.
The tax planning department will guide clients on business and personal tax planning and will prepare estate and gift tax returns including assistance in resolving audits of estate and gift tax returns. In addition, we will consult with our clients to help them fully understand their retirement benefits and advise and develop strategies to maximize the benefits our clients and their heirs receive from their retirement plans. Key services in Tax Planning include:
Developing an Estate Plan to Maximize Your Estate Tax Exemptions
Is your estate plan structured to make the most of available estate tax exemptions while preserving wealth for the next generation?
In 2026, the federal estate and gift tax exemption is $15 million per individual, while New York’s estate tax exclusion is $7.35 million. This substantial gap makes state-specific planning especially important for New York families.
Several strategies deserve careful consideration:
- Annual gifting: In 2026, you can generally give up to $19,000 per recipient without using your lifetime gift tax exemption.
- New York’s three-year gift rule: Certain taxable gifts made within three years of death may be included in the New York gross estate.
- Step-up in basis: The income tax treatment of gifted assets can differ from that of inherited assets, making asset selection and timing important.
- Planning for married couples: Federal portability and credit shelter trusts offer different ways to address unused exemptions. New York does not provide portability of its estate tax exclusion.
At Pierro, Connor & Strauss, LLC, our attorneys review existing estate plans and develop tailored strategies to address potential estate tax exposure, coordinate federal and New York tax considerations, and help clients transfer wealth efficiently.
