How to Plan for New York's Extended Clawback for Taxable Gifts

Private client partner Lisa Presser and associates Brian Balduzzi and Becca Kniffen co-authored an article for Thomson Reuters titled “How to Plan for New York's Extended Clawback for Taxable Gifts.”

The article outlines two 2025 tax developments, one at the federal level and one in New York, and examines how they affect estate planning for New York residents.

The authors state that New York's three-year gift "clawback" provision has been extended through January 1, 2032. The provision requires that certain taxable gifts made within three years of resident-decedents' death ‌be included in their gross estate to prevent individuals from reducing their state estate tax liability.

In addition to this state-level revision, the authors explain that the federal government increased the federal lifetime gift and estate tax exemption to $15 million per person, indexed annually for inflation. 

“All these changes have coincided to improve coordination between federal and New York State estate taxation and continue to provide opportunities for clients to plan for their taxable estates with their advisors,” the authors note.