NY Court rules marital trusts created by DESCENDANTS who died in 2010 are not subject to ny estate tax
There was no federal estate tax on the estates of decedents who died in 2010 ("2010 estates"); however, New York imposed an estate tax. Many 2010 estates elected to place property held for the surviving spouse into a so-called QTIP marital trust in order to avoid New York estate tax. Assets placed into a QTIP trust are subject to federal estate tax upon the death of the surviving spouse. New York tax authorities took the position that QTIP assets from a 2010 estate were subject to New York estate tax upon the death of the surviving spouse. In a recent ruling, a New York Surrogates Court ruled that the New York tax authorities were wrong. QTIP assets from a 2010 estate are not subject to New York estate tax upon the death of the surviving spouse.
Mr. Hendel has been practicing wealth preservation planning for over thirty years.