New York Estate Tax Nonresident Guide
Last updated: 23 Oct 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)
New York Estate Tax — Nonresident Guide
For estates of decedents domiciled outside New York that own New York-situs assets. This page explains who must file, what is taxable, how to limit the tax to NY assets, deadlines and extensions (ET-133), lien releases (ET-117), plus checklists and examples. NY Tax Law Art. 26
Do you need to file as a nonresident?
What counts as New York-situs property?
| Asset type | Taxed by NY? | Notes |
|---|---|---|
| Real property located in New York | Yes | Homes, condos, land, commercial property. Appraisals should reflect NY market and property-specific factors. |
| Tangible personal property situated in NY | Yes | Boats, vehicles, equipment, artwork, jewelry stored/kept in NY. |
| Intangibles (stock, bonds, bank/brokerage) | Generally no | Usually sourced to domicile unless a NY business situs exists. |
| Entity interests (LLC/partnership/corp) | Generally no | Treated as intangibles; be mindful of substance/operations. Look-through is limited; facts matter. |
| Co-op apartment | Intangible (shares) | Often still requires ET-117 lien release to transfer; coordinate early with managing agent and DTF. |
How NY limits the tax to the NY portion
- NY-taxable estate starts from federal concepts but includes only NY-situs assets for a nonresident, less deductions properly allocable to those assets.
- Allocation: Debts/expenses should be allocated consistently; follow ET-706 instructions for apportionment.
- BEA & cliff: Model the basic exclusion amount and test whether the NY taxable estate (after addbacks) crosses the cliff threshold.
Bottom line: compute the NY portion accurately; non-NY assets of a nonresident are outside the NY base.
Deadlines, extensions & lien releases
| Item | Timing | Notes |
|---|---|---|
| ET-706 due | 9 months after death | Tax payment is also due by 9 months. |
| Extension to file | Typically up to +6 months | Use ET-133 by the original due date; filing extension does not extend payment. |
| Extension to pay | Up to 4 years (undue hardship) | Request via ET-133; interest accrues on unpaid amounts. |
| Release of lien | Post-filing/payment as needed | Use ET-117 to transfer NY real property or co-op shares; coordinate with title/escrow or managing agent. |
Core forms (nonresident focus)
New York forms
- ET-706 — NY Estate Tax Return (attach federal schedules where applicable).
- ET-133 — Extension to file and/or pay (file by 9 months; tentative payment recommended).
- ET-117 — Release of Lien of Estate Tax (NY real property / co-op).
Federal attachments
- Form 706 (or 706-NA for nonresident aliens) pages/schedules and any Form 712 (life insurance).
- Deeds/co-op docs, appraisals, proof of asset location; will/trust; letters of authority.
If no federal return is required, prepare consistent federal-style schedules per ET-706 instructions.
Quick examples
Example — Manhattan condo to children
Nonresident decedent owns an NYC condo and out-of-state investments. The NY return includes the condo (and allocable deductions) only; non-NY accounts are excluded from the NY base.
Example — Co-op apartment to spouse
Co-op shares pass to the spouse. The shares are generally intangibles; still, a lien release (ET-117) is typically needed for transfer. Consider NY-only QTIP if federal filing is not required.
Nonresident filing checklist
Documents
- Death certificate; letters of appointment (home state and any NY ancillary).
- List of NY-situs assets with appraisals and location evidence.
- Federal schedules (706/706-NA), will/trusts, beneficiary designations.
Computations & timing
- Compute the NY portion on ET-706; allocate deductions consistently.
- Model BEA/gift addback and the potential cliff.
- Target the 9-month payment date; if needed, file ET-133 to extend filing (not payment) and request hardship relief for payment.
- Plan for ET-117 if a sale/transfer is pending.
FAQs — Nonresident estates
Are nonresidents taxed on brokerage accounts?
Generally no. Intangibles (brokerage, stock, cash) of a nonresident are usually not NY-situs unless they acquire a business situs in New York.
Do I have to file if there’s no New York property?
Usually not. If the decedent had no NY-situs assets, an NY estate tax return is generally not required. Verify titles and location facts carefully.
How do I get proof to close a sale or transfer?
After filing/paying as applicable, request a Release of Lien (ET-117). Title/escrow, co-op managing agents, and lenders often require this before closing or retitling.
What if a federal estate return isn’t required?
You may still need a New York filing. Use federal-style schedules as pro-forma support and file ET-133 for a filing extension by 9 months if needed (payment still due unless hardship).
References
- New York Tax Law — Article 26 (Estate Tax): residency, situs, BEA, gift addback, cliff.
- NY DTF — ET-706 (estate tax return) and instructions; ET-133 (extension to file/pay); ET-117 (release of lien).
- 20 NYCRR (Estate Tax Regs) — elections, deductions, apportionment, procedures.
- IRS Form 706/706-NA & Instructions — federal base and valuation references used in NY filings.