If you have spent years building wealth to support your family, it is natural to want to protect it. But estate taxes can quietly chip away at what you leave behind—unless you plan for them. Many people are surprised to learn how quickly assets can cross taxable thresholds, especially once you include real estate, investments, life insurance, and other holdings.
At The Law Offices of Louis P. Lepore, our attorneys work with local families who want to keep more of what they have built. Estate planning is about more than just who gets what—it is about protecting your legacy from avoidable taxes. When it comes to Staten Island estate tax implications, taking a few smart steps now can make a major difference later.
Two sets of estate tax rules might apply to your situation: federal and New York State. People often think these taxes only impact the ultra-wealthy, but that is not always the case.
The federal estate tax exemption is $13.99 million per person, or $27.98 million for a married couple. That means you will likely not owe federal estate taxes if your estate is under that amount. However, New York State sets a much lower limit of $7.16 million per person. In addition, the state does not allow the same spousal transfer benefit as the federal system. So, if you do not use your exemption, it is gone.
Even more surprising? The state’s cliff rule takes effect if your estate exceeds the $7.16 million threshold by just over five percent. That could mean your entire estate, not just the portion above the exemption, becomes taxable at rates of up to 16 percent.
So while federal taxes may not apply to most families, state estate taxes absolutely can. A Staten Island estate planning attorney could help you identify where your estate stands and if adjustments are needed to address potential tax impacts.
Annual gifting is one of the easiest ways to reduce the value of your Staten Island estate and potential taxes, without losing anything. You can give up to $19,000 per person annually without triggering gift tax. Done consistently, this can make a big dent in your taxable estate over time.
Irrevocable trusts are another strong option. They remove certain assets from your estate while letting you control how those assets are used. You may have heard of options such as:
Each comes with pros and cons, so it is best to speak with an attorney who understands the legal and tax requirements of these tools.
Charitable giving can also help reduce taxes while supporting causes that matter to you. Some families choose charitable remainder trusts or leave bequests to nonprofits that align with their values.
If you own property, how it is titled and valued can also impact your estate’s overall size. It is worth reviewing those details, as sometimes a small shift in how things are set up can deliver significant savings.
Working with an experienced legal team could prepare you for the Staten Island estate tax implications that may affect your legacy. By identifying a thoughtful plan today, you could pass more of your estate on to the people and causes you care about.
Whether it has been a while since you looked at your plan or you are just getting started, talking with our estate tax planning lawyers could help you take the next step. Reach out today to learn how we could work with you to protect what you have built.
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