According to the Internal Revenue Code, it is requested for the fiduciary of an estate to file a New York State estate tax return when the total value of the estate of a New York resident exceeds the “basic exclusion amount” determined at the decedent’s date of death. Likewise, a New York State tax return will have to be filed for the estate of a New York state resident if the value of an “includible gift” exceeds the “basic exclusion amount” determined at the decedent’s date of death. Includible gifts are defined under Section 2503 of the Internal Revenue Code and comprise gifts made over the three years preceding the decedent’s death as well as gifts that were not already part of the decedent’s federal gross estate. For more information concerning includible gifts and the applicable value of the basic exclusion amount, it is imperative to contact an expert attorney or an accountant.

Regarding the estates of non-resident decedents, tax filing requirements differ. The fiduciary appointed for the estate of a decedent who did not have a permanent domicile in the state of New York prior to his or her death must file a New York State estate tax return only if the estate includes any real property or tangible property located in New York state and if total value of the estate of a foreign resident plus the amount of any includible gift exceed the “basic exclusion amount” determined at the decedent’s date of death.

Importantly, estates must file and pay estate taxes no later than 9 months after the decedent’s date of death. The fiduciary of an estate must file the latest and most current version of Form ET-706 “New York Estate Tax Return”. Additionally, the estate will have to file Federal Form 706 “United States Estate Tax Return” even when the estate is not required to file a federal estate tax return.