By Roman Aminov,
Many families in Queens own more than they think. Add up the co-op or house you bought years ago, a couple of retirement accounts, a life insurance policy, and whatever sits in checking and savings, and the total can surprise you. That number matters because New York has its own estate tax system with rules that catch people off guard, especially homeowners in a borough where property values have climbed steadily for more than a decade. A solid estate plan is the difference between your family inheriting what you built and the state deciding how to divide it for them.
Risk 1: Taxes
Most people assume estate planning is only for the wealthy. In Queens, that assumption falls apart quickly. A two-family home in Forest Hills or Bayside purchased twenty years ago may now be worth well over a million dollars. Combine that with a pension, an IRA, and a life insurance payout, and a family that never thought of itself as "high net worth" suddenly finds itself in range of New York's estate tax threshold.
The New York basic exclusion amount for 2026 is $7,350,000. That sounds like a comfortable cushion until you realize how the state's "cliff" provision works. If the taxable estate exceeds roughly 105% of the exemption amount, which in 2026 equals $7,717,500, the entire exemption disappears, and every dollar in the estate gets taxed. An estate worth $7.4 million, just $50,000 over the line, could face six figures in state tax liability.
- Property Appreciation Risk: Queens real estate values have risen faster than many owners realize, quietly pushing estates closer to the tax cliff without any lifestyle change
- Insurance Blind Spot: Life insurance death benefits count toward your taxable estate, meaning a $1 million policy can push a family over the threshold
- Retirement Account Exposure: IRAs and 401(k)s are included in the estate's total value for tax purposes, even though your beneficiaries will also owe income tax when they withdraw the funds
Risk 2: Not Planning Ahead
If a Queens resident passes away without a will, New York's intestacy statute, EPTL 4-1.1, dictates exactly who receives what. If the decedent is survived by a spouse and children, the spouse receives the first $50,000 and one half of the remaining estate, with the balance going to the children by representation. There is no room for personal preference, no accommodation for a stepchild you raised, no provision for a longtime partner.
Think about that in practical terms. A family home in Flushing worth $1.2 million, held in one spouse's name alone, may need to be sold to satisfy the children's statutory share. Unmarried partners receive nothing at all. Close friends, charities, and anyone outside the bloodline are left out entirely.
- Forced Sales: The intestacy formula can require liquidating real estate to divide proceeds among distributees, even when the surviving spouse still lives there
- Frozen Accounts: Without named beneficiaries or a will, bank and brokerage accounts can sit locked for months while the Surrogate's Court appoints an administrator
- Family Conflict: When the law decides who gets what, disagreements between siblings, half-siblings, and in-laws become far more common
How the Right Documents Protect Your Family
A well-crafted estate plan is not a single document. It is a set of coordinated tools that work together to cover different scenarios. A will directs asset distribution. A revocable trust can keep your home and financial accounts out of probate entirely, giving your family immediate access rather than months of waiting at the courthouse on Sutphin Boulevard. A durable power of attorney ensures someone you trust can manage your finances if you become incapacitated, and a health care proxy puts medical decisions in the hands of the person who knows your wishes best.
For Queens homeowners specifically, the interplay between trusts and property ownership is critical. Transferring real property into a properly structured trust during your lifetime can bypass probate, reduce exposure to the estate tax cliff, and keep your family's business private rather than part of the public court record.
- Probate Avoidance: Trust-owned property passes directly to beneficiaries without court involvement, saving months of delay and thousands in legal fees
- Tax Cliff Management: Strategic gifting and trust funding can keep your taxable estate below the $7,350,000 threshold where the cliff provision activates
- Incapacity Protection: Powers of attorney and health care proxies prevent the need for a costly guardianship proceeding if illness or injury strikes unexpectedly
Why a Local Approach Matters in Queens
Estate planning is not a one-size-fits-all exercise. An expert Queens estate planning attorney who understands local property values and New York tax rules can build a plan tailored to the way families in this borough actually hold their wealth. Between co-ops with unique transfer requirements, multi-generational households, and properties that have appreciated far beyond their original purchase price, the details matter enormously.
New York does not allow estate tax exemption portability between spouses, unlike the federal system, which means married couples need deliberate trust planning to use both exemptions. Under the One Big Beautiful Bill Act, the federal estate tax exemption permanently increased to $15 million per individual beginning in 2026. That eases federal concerns for most families, but it does nothing to change New York's much lower threshold. State-level planning remains essential.
The best time to put a plan in place was years ago. The second-best time is now, before another year of property appreciation, another beneficiary designation left blank, or another policy change shifts the landscape again.
Contributed by Roman Aminov, A Senior Estate Planning Attorney.
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