New York taxes estates far more aggressively than the federal government does. The state's basic exclusion amount is a fraction of the federal exemption, and unlike the federal system, New York offers no gradual phase-out once an estate exceeds it. Cross the exemption by more than 5% and the entire estate becomes taxable — not just the portion above the threshold. This is commonly called the "cliff," and it can cost a family hundreds of thousands of dollars over an estate that lands only a few thousand dollars into the danger zone. For a fuller walkthrough of how the cliff is calculated, see our article on how New York residents can reduce estate taxes with charitable giving.
Charitable giving is one of the most reliable tools for keeping an estate off the cliff. When a portion of an estate passes to a qualified charity, that portion is deducted from the taxable estate before New York calculates what is owed. Structured correctly, a charitable bequest doesn't just lower the tax bill — for an estate hovering just above the exemption, it can pull the estate back under the threshold and avoid the cliff altogether.
Not every client needs the same tool. A straightforward charitable bequest in a will is often enough for a modest overage above the exemption. A Santa Clause provision works well for clients who are comfortable letting the exact dollar amount float with the exemption from year to year. A charitable remainder trust is the right fit when a client wants to keep drawing income from an asset — like a highly appreciated stock position or real estate — while still removing its full value from the taxable estate.
Under New York's Estates, Powers and Trusts Law, these charitable structures are well established, but they need to be drafted precisely to hold up when the estate is eventually accounted for. A gift clause that's ambiguous about amount, timing, or beneficiary can create exactly the dispute you were trying to avoid. If your estate touches on broader planning questions — trusts, powers of attorney, or how assets will pass to your family — our estate planning services cover the full picture alongside the charitable component.
It depends on how far above the exemption the estate sits. We calculate the exact gift amount needed to bring the estate back under the threshold as part of the initial review.
No. Many clients only need a relatively modest gift to fall back under the exemption, since the cliff is triggered by exceeding the threshold by just 5%.
It's a clause in a will or trust directing that any amount of the estate exceeding the exemption be gifted to a charity of your choosing, rather than taxed.
Yes. A charitable remainder trust is designed specifically to let you retain income from the asset during your lifetime while removing it from your taxable estate.
As soon as your estate is approaching the exemption amount. Waiting until after a loved one has passed removes most of the planning options available today.
Law Offices of Roman Aminov
147-17 Union Turnpike, Flushing, NY 11367
Phone: (347) 766-2685
Fax: (347) 474-7344
