What Is Estate Tax Planning? (And Why New Yorkers Shouldn't Ignore It)

When clients ask about estate planning, they usually mean wills and trusts. However, estate tax planning is a crucial and often overlooked part of the conversation, especially in New York.

It’s all about minimizing the taxes your estate might owe when you pass. Done right, it keeps your wealth in your family’s hands—not the government’s.

Why Estate Tax Planning Matters in New York

If your estate is worth more than $7.16 million as of 2025, it may owe New York State estate tax—even if you’re under the federal exemption. Thanks to NY’s “estate tax cliff,” being just slightly over the exemption could mean paying taxes on your entire estate.

This is especially important if you:

Own real estate in New York,

Run a business,

Hold life insurance or retirement accounts,

Or want to leave a legacy for future generations.

Tools to Help Reduce Estate Taxes

Some of the most effective estate tax planning strategies include:

Irrevocable Trusts (SLATs, ILITs, QPRTs): Move assets out of your taxable estate.

Family LLCs or FLPs: Shift ownership with discounts while retaining control.

Charitable Trusts (CRTs, CLTs): Benefit a cause and lower taxes.

Gifting: Use lifetime exemptions to reduce your taxable estate now.

Business Succession Plans: Protect family businesses from being liquidated for tax payments.

Why You Should Plan Ahead

Many strategies require time to be effective. Some must be set up years before death. Waiting can limit your options or cost your family millions in avoidable taxes.

Let’s Talk
Estate tax planning isn’t just for the ultra-wealthy. It's for anyone who wants to protect what they’ve built. If you own significant assets or operate a business in New York, now is the time to put a plan in place.

Ready to get started? Contact our office @ 516-570-4016 to schedule a personalized consultation.