Core goals

• Preserve/optimize the BEA and avoid the cliff where feasible.
• Deploy NY-only QTIP or coordinated marital planning to defer/reduce NY tax.
• Manage gift addback exposure (look-back window depends on year of death).
• Control situs for nonresident exposures; maintain clear domicile facts.
• Secure liquidity for the 9-month payment; line up ET-133 and any hardship relief early.

Who this is for

• NY residents near/over the BEA or with cliff risk.
• Nonresidents with NY-situs real/tangible property (incl. co-ops).
• Executors and planners coordinating federal and NY filings (ET-706).

Domicile (resident estates)

• Document intent and objective ties (home, voter reg., licenses, business/family/medical ties).
• Keep consistency across filings and records over multiple years.

Situs (nonresident estates)

• NY taxes only NY-situs real/tangible property for nonresidents; most intangibles follow domicile absent a NY business situs.
• Co-op shares are typically intangibles, but transfers usually require ET-117.

Why it matters

If the NY taxable estate edges just above the BEA, the cliff can cause tax on nearly the entire amount, not just the excess.

• Stress-test values with appraisals and alternate dispositions (charitable/marital).
• Consider disclaimers/timing for bequests to stay within BEA where appropriate.

Planner checklist

• Model with/without gift addback and with different valuation scenarios.
• Use our calculator for order-of-magnitude estimates.
• Document rationale for elections; keep worksheets with ET-706.

Conformity points

• NY recognizes QTIP concepts but has its own election mechanics on ET-706.
• Portability: NY does not offer state portability; federal portability remains a federal election only.

Design tips

• When no federal 706 is required, a NY-only QTIP election may still defer NY tax—include a compliant election statement and ensure trust income requirements are met.
• Coordinate marital formula clauses (e.g., Clayton/QTIP switches) with the BEA/cliff model.

Look-back window

For certain death years, NY requires adding back specified taxable gifts made within a 3-year window (statutory exceptions apply).

• Audit gift history early; retrieve Forms 709 and workpapers.
• Evaluate pre-mortem planning (charitable, marital) to mitigate addback effects.

Interaction with cliff

• Addback can push the estate over the BEA and trigger the cliff.
• Scenario-plan with and without addback to avoid unintended tax spikes.

Valuation

• Engage qualified NY appraisers for real property and high-value tangibles.
• Align federal schedules (706/712) with NY attachments; reconcile any differences.

Liquidity & extensions

• Payment and return due at 9 months; interest accrues thereafter.
• ET-133: request filing extension (typically up to 6 months) and, if needed, payment relief for undue hardship (may run up to 4 years; interest applies).
• Coordinate any federal §6166/§6161 relief with NY payment planning.
• Prepare ET-117 early if property/co-ops must be transferred or sold.

Design & documents

• Will/Revocable Trust with marital/QTIP options (consider NY-only QTIP).
• Gift files (709s), beneficiary designations, entity documents.
• Appraisals and NY-specific evidence (co-op documents, deeds, custody/location records).

Execution & filings

• Prepare ET-706 with federal schedules (or pro-forma schedules if no federal filing).
• Model BEA/cliff and gift addback; capture election statements (QTIP) in the filing package.
• Plan cash needs for the 9-month date; submit ET-133 if needed; line up ET-117 for property/co-ops.

Hat New York Portability?

Nein. Es gibt keine staatliche Portability. Bundes-Portability bleibt ausschließlich eine federal election.

Kann ich ein NY-QTIP wählen, ohne eine Bundeserklärung abzugeben?

Ja, häufig möglich. NY erlaubt NY-only QTIP auf ET-706; eine saubere Election-Erklärung und QTIP-konforme Treuhandbedingungen sind nötig.