New york state bar association proposes eliminating the new york estate tax cliff

New York phases out its estate tax exemption for taxable estates that are between 100% and 105% of the estate tax exemption.  The New York estate tax exemption is $5,250,000 for estates of decedents who die in 2018.  This means that an estate of a decedent who dies in 2018 that is over $5,512,500 loses the benefits of the $5,250,000 exemption.  As a result, beneficiaries of an estate between $5,250,001 and $5,728,101 actually inherit less than an estate of $5,250,000.  The New York State Bar Association has proposed phasing out the New York estate tax exemption for taxable estates that are between 100% and 150% of the exemption amount.