For anyone who dies after January 1, 2019, their estates in New York that are worth more than $5,740,000 are taxed. This differs from federal estate tax, which exempts estates worth up to $11.4 million. But while the federal tax rate is 40%, the New York State estate tax rate starts at 5% and goes up to only 16% at its highest rate.
New York taxes the entire value of an estate that exceeds the exempt amount, however, not just the amount over the exempt amount. In other states, if the exempt maximum is $10 million and the estate is worth $11 million, only the one million over the exempt threshold is subject to the estate tax. However, in that same case in New York, the whole $11 million of the estate is subject to the estate tax.
Property left to a spouse, however, is exempt from both New York and federal estate taxes.
Those who are New York residents at their time of death and have estates that exceed the $5.74 million exempt threshold will have to have their estate executors file a New York estate tax return.
Those estate executors will likely have to also obtain an estate surety bond as well in order to protect the interests of the estate and its beneficiaries.
Where can you purchase instant estate surety bonds?
Colonial Surety offers the direct and digital way to obtain estate bonds, also known as probate bonds, personal representative bonds, administrator bonds, and executor bonds. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your bond instantly. The steps are easy — get a quote online, fill out your information, satisfy underwriting requirements, and enter your payment method. Print or e-file your bond from your office. It’s that simple!