Enlarge image | Department of Taxation and Finance Instructions for Form ET-706 ET-706-I(9/23) New York State Estate Tax Return For an estate of an individual who died on or after January 1, 2023 General information Preparer information The add back of taxable gifts has been extended for estates If you prepared Form ET-706 for the estate and you are not the of decedents dying on or after January 16, 2019, and before executor, fill in the information requested in the preparer section January 1, 2026. An includible gift is any taxable gift under Internal on page 6 of the return and sign where indicated. Include your Revenue Code (IRC) § 2503 that was made during the preceding federal preparer tax identification number (PTIN) or your Social three-year period ending on the decedent’s date of death and that Security number (SSN), and your New York tax preparer registration was not already included in the decedent’s federal gross estate. identification number (NYTPRIN) if you are required to have one. However, a gift is not included if it was made: Paid preparers can be subject to a penalty for failure to conform • when the decedent was not a resident of New York State (NYS); to certain requirements. See TSB-M-09(10)M, Tax Preparer Registration Program, and TSB-M-10(8)M, Enrolled Agents • before April 1, 2014; Excluded from the Definition of Tax Return Preparer for the Tax • between January 1, 2019, and January 15, 2019; or Preparer Registration Program, for more information. • that is real or tangible personal property having an actual situs outside New York State at the time the gift was made. Conformity with the IRC For estates of decedents dying on or after January 1, 2019, and NYS Estate Tax Law Article 26 generally conforms to the IRC of before January 16, 2019, there is no addback of taxable gifts. 1986, with all amendments enacted on or before January 1, 2014 [NYS Tax Law § 951]. The Tax Law requires a New York qualified terminable interest property (QTIP) election be made directly on a New York estate tax Which estates must file Form ET-706 for New return for decedents dying on or after April 1, 2019. Any election made under this subsection is irrevocable. York State Any QTIP from a previously allowed New York marital deduction New York State residents must be included in the surviving spouse’s New York gross estate, The estate of an individual who was a NYS resident at the time of whether the QTIP election was made on the transferring spouse’s death must file a NYS estate tax return if the total of the federal New York estate tax return or on a federal proforma return if an gross estate plus any includible taxable gifts made while the actual federal return was not otherwise required. individual was a resident of New York State exceeds the New York State basic exclusion amount ($6,580,000) applicable for dates of Relief provisions for the disposition of an estate when the surviving death on or after January 1, 2023. See General information above spouse is not a United States citizen were set to expire on for information on includible taxable gifts. July 1, 2022. They will now expire on July 1, 2025. See Marital deduction for surviving spouses who are not United States citizens New York State nonresidents below. The estate of an individual who was not a resident of New York State at the time of death must file a NYS estate tax return if the Discovery of abandoned property held by the estate includes real or tangible personal property having an actual Office of the State Comptroller (OSC) location in NYS and the federal gross estate plus any includible For dates of death on or after June 1, 1944, a reduced interest taxable gifts of real or tangible personal property located in New rate will be applied to any late paid estate tax due on an original York State and intangible personal property employed in a business, or amended return that was required to be filed because of the trade or profession carried on in New York State, made while the discovery of certain abandoned property held by OSC. The reduced individual was a resident of NYS, exceeds the New York State interest rate will apply to the period of time the property was held by basic exclusion amount ($6,580,000) applicable for dates of death OSC. on or after January 1, 2023. See General information above for information on includible taxable gifts. Marital deduction for surviving spouses who The estate must also submit a completed Form ET-141, New York are not United States citizens State Estate Tax Domicile Affidavit. For dates of death on or after January 1, 2010, an estate that is not required to file a federal estate tax return may take the marital General requirements for filing a federal estate deduction for a surviving spouse who is not a United States citizen tax return without setting up a Qualified Domestic Trust (QDOT). U.S. citizens and residents For further information on abandoned property and this marital The executor must file federal Form 706 for the estate of every U.S. deduction, refer to TSB-M-14(5)M, 2013 Legislation Amending the citizen or resident: New York State Estate Tax. • whose executor elects to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse, regardless of New York State Marriage Equality Act the size of the estate, or For New York estate tax purposes, equal treatment has been given to estates of individuals legally married to different-sex spouses and • whose gross estate, plus adjusted taxable gifts and specific same-sex spouses since the enactment of the Marriage Equality exemption is more than the federal basic exclusion amount Act, applicable to estates of individuals dying on or after July 24, applicable to the decedent’s date of death. 2011. As a result of the Supreme Court’s decision in the matter of the United States v. Windsor, this treatment now also applies to Nonresidents of the United States who were not U.S. estates of individuals legally married to same-sex spouses who died citizens prior to July 24, 2011. For more information, see TSB-M-13(9)M, The executor must file federal Form 706-NA if the date of death New York Estate Tax Information for Estates of Individuals Married value of the decedent’s gross estate located in the United States to Same-Sex Spouses, and TSB-M-13(10)M, Information for (under federal IRC situs rules) exceeds the filing limit of $60,000, Same-Sex Married Couples. reduced by the sum of the gift tax specific exemption applicable to |
Enlarge image | Page 2 of 6 ET-706-I (9/23) certain gifts made in 1976, and the total taxable gifts made after of payment, up to a maximum of 25% [NYS Tax Law §§ 990 and 1976 that are not included in the gross estate. 685(a)(2)]. This penalty is in addition to the interest charged for late payments. When to file Form ET-706 for New York State This penalty may be waived if you attach an explanation to your You must file Form ET-706 within nine months after the decedent’s return showing reasonable cause for paying late. date of death, unless you receive an extension of time to file the return. Note: When late filing and late payment penalties are imposed at the same time, the amount of the late filing penalty computed for An extension of time to file the estate tax return may not exceed six each month is reduced by the amount of the late payment penalty months, unless the executor is out of the country. computed for the same monthly periods. The Tax Department may grant an extension of time to pay If you compute your tax incorrectly – You may have to pay a the estate tax for up to four years from the date of death, if it is penalty if the tax you report on your return is less than your correct established that payment of any part of the tax within nine months tax. If you reported an amount that is off by more than 10% of the from the date of death would result in undue hardship to the estate. tax required to be shown on the return, or by $2,000, whichever is Annual installments may be required [NYS Tax Law § 976(a)]. more, you may have to pay this penalty. The penalty is 10% of the difference between the tax you reported and the tax you actually If you need an extension of time to file the estate tax return, pay the owe [NYS Tax Law §§ 990 and 685(p)]. estate tax, or both, file Form ET-133, Application for Extension of Time to File and/or Pay Estate Tax, For an estate of an individual Negligence penalty – If you do not show all of the tax imposed on who died on or after January 1, 2019. your return (under the NYS Tax Law, its rules or regulations) due to negligence or intentional disregard (but not with intent to defraud), Also see Election of installment payments of tax for closely held you will be charged a penalty of 5% of any deficient amount. business on page 3 for information on an extension of time to pay the tax when a large part of the estate consists of an interest in a In addition, 50% of the interest due on any underpayment resulting closely held business. from negligence will be added to your tax [NYS Tax Law §§ 990 and 685(b)]. Where to file Fraudulent returns – If any part of a deficiency is due to fraud, Mail Form ET-706 to: you will be charged a penalty of 50% of the deficiency. In general, NYS ESTATE TAX a deficiency is the difference between the correct tax and the tax PROCESSING CENTER shown on your return. If you file your return late, the deficiency is PO BOX 15167 the entire tax. In addition, 50% of the interest due on any deficiency ALBANY NY 12212-5167 resulting from a fraudulent act will be added to your tax [NYS Tax Law §§ 990 and 685(e)]. Private delivery services – If not using U.S. Mail, see Publication 55, Designated Private Delivery Services. Frivolous returns – The Tax Department will impose a penalty of up to $500 on any person who files a frivolous tax return. A return is considered frivolous when it does not contain information needed to Interest and penalties judge the correctness of the tax return or reports information that is Interest obviously and substantially incorrect, intended to delay or impede Underpayment of tax – To avoid the assessment of interest, you the administration of Article 26 of the Tax Law or the processing of must pay the total tax as finally determined within nine months of the return [NYS Tax Law §§ 990 and 685(q)]. the date of death, even if you received an extension of time to file the return. Interest is compounded daily, and the rate is adjusted Supplemental documents quarterly. A completed copy of either federal Form 706 or 706-NA (also see Which estates must file Form ET-706 for New York State, on Overpayment of tax – If the estate is due a refund, you may also page 1), with all schedules and supporting documents, must be be entitled to receive interest on your overpayment. Interest is submitted with your NYS estate tax return. When applicable, you compounded daily, and the rate is adjusted quarterly. If the refund is must submit the following documents with the estate tax return (if made within 45 days after the due date of the return, the extended they were not previously submitted): due date, or the date the return is filed, whichever is later, no interest will be paid. If the refund is not made within this 45-day period, • a copy of the death certificate interest will be paid from the due date of the return or the date the • a copy of the decedent’s last will (if one exists) return is filed, whichever is later. • letters of appointment (if obtained from the surrogate’s court) • a power of attorney (see Attorney/representative information Penalties below) Late filing penalty – If you file late, you will be charged a penalty of 5% on the amount of tax required to be shown on the return For the estate of an individual who was not a resident of NYS at (reduced by any tax paid by the prescribed due date of the return the time of their death, complete Form ET-141, and attach it to the and by any allowable credits) for each month or part of a month the return. return is late, up to a maximum of 25%, unless you extend the time to file and file within the extended period, or attach to your return an Amended returns explanation showing reasonable cause for the delay. If your return is To amend your NYS estate tax return, mark an Xin the box at the more than 60 days late, this penalty will not be less than the lesser top of the front page of Form ET-706, complete the return, and mail of $100 or 100% of the tax required to be shown (reduced by any it to the NYS Estate Tax Processing Center address. Include your tax paid timely and by any allowable credit) [NYS Tax Law §§ 990 remittance for additional tax, if applicable. If you also amended and 685(a)(1)]. For information on requesting an extension of time the federal estate tax return, attach a copy of the amended federal to file your return, see When to file Form ET-706 for New York State estate tax return, Form 706 or Form 706-NA. above. Late payment penalty – If you do not pay the tax when due, you Federal audit changes will be charged a penalty of ½% of the unpaid portion of the total If you are amending Form ET-706 as a result of a federal audit tax shown on the return for each month or part of a month the tax change, mark an Xin the box at the top of the front page of remains unpaid. It will be computed from the due date to the date Form ET-706. Attach to the estate’s amended Form ET-706, a |
Enlarge image | ET-706-I (9/23) Page 3 of 6 complete copy of the federal audit changes, including adjustments or constructive possession of any property of the decedent with and supporting schedules. If you fail to attach all necessary forms sufficient knowledge to file an accurate return. and schedules, the estate’s amended Form ET-706 will be returned to you, delaying processing. If an executor has not been appointed, this form may be signed and filed by a person having knowledge of all the assets in the decedent’s estate. This person must also enter their name, address, Completing the return and Social Security number in the area provided for the executor on Note: If the decedent was: the front page of the return. • a victim of the September 11, 2001, terrorist attack(s) who died as If the estate has more than one executor, mark an Xin the box, a result of wounds or injuries incurred as a result of the attacks; or enter the name and other information for the primary executor • a United States astronaut who died in the line of duty (preferably a person residing in NYS) in the area provided, and the estate is exempt from New York State estate tax. However, attach a list of each of the other executors with their mailing address the estate is required to file a New York State estate tax return if a and Social Security number. SubmitLetters Testamentary orLetters federal estate tax return is required. of Administration with the return if not previously submitted. It is sufficient to have one of the coexecutors sign the return. The preparer should write either KITA-9/11 or U.S. astronaut, as applicable, at the top of the front page of Form ET-706. The estate is not required to complete Schedules A, B, C, D, or E. However, Election of installment payments of tax for the preparer should enter 0on lines 2 and 4 of Form ET-706. closely held business In the area provided on the front page of the return, indicate if the estate is electing to pay the estate tax in installments as provided Federal return required under NYS Tax Law § 997. When a large part of an estate consists A copy of the federal return must be submitted – The starting of an interest in a closely held business, the estate representative point for the NYS estate tax return is the federal estate tax return. may elect, under NYS Tax Law § 997, to apply for deferred A completed federal estate tax return must be submitted with the payment of estate tax. This extension is based upon IRC § 6166, as NYS estate tax return, even if the estate is below the federal filing incorporated in NYS Tax Law. threshold. An estate will not be allowed to defer payment of the NYS estate tax Decedent information under NYS Tax Law § 997 if the estate is required to file a federal Enter the name of the decedent (last name first), home address at estate tax return and either does not elect or is not allowed to pay the time of death, Social Security number, date of death (month, the federal estate tax in installments under IRC § 6166. date, and year), and county of residence. The time limit for making this election for NYS estate tax is nine If you have not previously submitted a copy of the death certificate, months from the date of death (15 months if an extension of time mark an X in the box and attach a copy to the return being filed. to file is granted). Form ET-415, Application for Deferred Payment of Estate Tax,For the estate of a decedent whose date of death is Indicate if the decedent was a nonresident of NYS at the time of on or after January 1, 2019, must be completed and attached to death. If the decedent was not a resident of NYS at the time of Form ET-706. death, complete and attach Form ET-141 if one was not submitted Note: If you are electing to pay the NYS estate tax in installments, previously. you must file Form ET-415 in the time allowed or it will be denied, In the area provided, enter the federal employer identification even when the federal election is made on time. number (EIN), if any, for the estate. The EIN, also known as a If you need an extension of time to file the return or to pay the federal tax identification number, can be obtained by contacting non-deferred tax, refer to Form ET-133, Application for Extension the IRS. Also enter the name(s) and EIN for any trusts created. If of Time to File and/or Pay Estate Tax, For an estate of an individual additional room is needed, attach a sheet listing the names and who died on or after January 1, 2019. identification numbers of the trusts. Releases of lien Attorney/representative information In the area provided on the front page of the return, enter the If you, as the executor of the estate, have authorized a person number of counties for which you are requesting releases of to represent you regarding the estate, and you would like the lien, and submit a completed Form ET-117, Release of Lien of department to contact this authorized person, enter the person’s Estate Tax, for each county in which real property is located. After name and the firm’s name, address, and telephone number in the Form ET-117 has been validated and returned to you, file the areas provided on the front page of the return. The representative validated Form ET-117 with the county clerk or commissioner of must sign in the area provided on the last page of the return. deeds for the county in which the real property is located. If you give a person power of attorney to represent you, attach If a release of lien is needed for one or more cooperative completed Form ET-14, Estate Tax Power of Attorney, if one was not apartments, complete a separate Form ET-117 for each cooperative submitted previously. corporation and purchaser. After Form ET-117 has been validated Note: Unless a change in representation or authority is being made, and returned to you, give the validated Form ET-117 to the Form ET-14 should only be submitted to the department once. purchaser of the cooperative apartment(s) as proof that the lien has You do not have to send Form ET-14 in with each estate tax been released. form you file. If Form ET-14 was submitted previously, indicate the Do not submit real property and cooperative apartments on the form it was sent in with, and the date that form was submitted (see same Form ET-117, even when they are located in the same county. Form ET-706, page 1). A release of lien is not required if the property was held jointly by the Executor information decedent and the surviving spouse as the only joint tenants with the Enter the name (last name first) and other information for the right of survivorship (tenants by the entirety). executor of the estate. The term executor includes executrix, Note: If you are not yet ready or are not required to file administrator, administratrix, or personal representative of Form ET-706, refer to Form ET-30, Application for Release(s) of the decedent’s estate; if no executor, executrix, administrator, Estate Tax Lien. If Form ET-30 does not apply, refer to Form ET-85, administratrix, or personal representative is appointed, qualified, and acting within the United States, executor means any person in actual |
Enlarge image | Page 4 of 6 ET-706-I (9/23) New York State Estate Tax Certification. Attach your completed Worksheet Form(s) ET-117 to whichever form you are filing. (see example below) 1. New York Taxable estate ................................. 1. Line instructions 2. New York Basic exclusion ............................... 2. 6,580,000 Note: Federal form line references are to Form 706, August 2019, and Form 706-NA, June 2019, unless otherwise noted. 3. Subtract line 2 from line 1 ............................... 3. 4. 5% of basic exclusion ...................................... 4. 329,000 Item a 5. Divide line 3 by line 4 (carry to four decimals) ..... 5. Is a federal estate tax return required to be filed with the IRS? – In the area provided above line 1 on the front page of NYS 6. Subtract line 5 from 1.0 ................................... 6. Form ET-706, indicate if the estate is required to file a federal 7. Multiply line 2 by line 6 ..................................... 7. estate tax return, either federal Form 706 or 706-NA (see General requirements for filing a federal estate tax return on page 1 of these 8. Applicable credit (tax amount for line 7 from tax instructions). Since the federal estate tax return is the starting point table on Form ET-706, page 6). Enter here and for the NYS estate tax return, a completed copy of the federal return on Form ET-706, line 3. ................................... 8. must be submitted, even when the estate is below the federal filing threshold. Example for Worksheet Item b 1. Taxable estate ................................................. 1. 6,758,318 If the estate is making a QTIP marital election, the amount of the QTIP must be listed on Schedule M, section A1, of the federal 2. Basic exclusion ............................................... 2. 6,580,000 Form 706. A copy of the entire federal form should be submitted with 3. Subtract line 2 from line 1 ............................... 3. 178,318 this return. 4. 5% of basic exclusion ...................................... 4. 329,000 Alternate valuation – When the estate is not required to file a federal estate tax return with the IRS, the estate may elect, if 5. Divide line 3 by line 4 (carry to four decimals) ..... 5. 0.5420 otherwise eligible, to use the alternate valuation on the pro forma 6. Subtract line 5 from 1.0 .................................... 6. 0.4580 federal estate tax return filed with Form ET-706. This may result in a reduced estate tax liability. 7. Multiply line 2 by line 6 ..................................... 7. 3,013,640 The election must decrease both the value of the gross estate and 8. Applicable credit (tax amount for line 7 from tax the amount of New York estate taxes due after application of all table on Form ET-706, page 6). Enter here and allowable credits. The calculation on the pro forma federal return on Form ET-706, line 3. ................................... 8. 183,200 must use the tax rates and other provisions for the IRC, with all amendments through January 1, 2014. To elect alternate valuation, check Yes on page 2, Part 3, line 1, of Line 5 federal Form 706, or page 2, Schedule A, of federal Form 706-NA, Enter the net amount of prior tax payment(s) you made to New York filed with NYS Form ET-706. If the estate elects to use the alternate State. If you previously filed a return(s) and received a refund(s), valuation, the election may not be revoked. However, the estate you must reduce the amount of payment(s) by the amount of may elect to use the alternate valuation after Form ET-706 is filed, refund(s) and report this net amount on line 5. If you did not make provided the return was not filed later than one year after the due any prior payments, enter 0. date (including extensions). Refer to the federal instructions and regulations for information on the date that property is to be valued, Line 6 determining if the estate qualifies, making an election after the return If an amount is due, make check or money order payable in U.S. is filed, and how to make a protective election. funds to the Commissioner of Taxation and Finance. Fee for payments returned by banks – The law allows the Tax Line 3 – Applicable credit Department to charge a $50 fee when a check, money order, or Compute the amount of the applicable credit on Form ET-706, line 3 electronic payment is returned by a bank for nonpayment. However, as follows: if an electronic payment is returned as a result of an error by the • If the taxable estate is not more than $6,580,000, enter the bank or the department, the department will not charge the fee. amount from Form ET-706, line 2 on Form ET-706, line 3. If your payment is returned, we will send a separate bill for $50 for • If the taxable estate is more than $6,580,000 but not more than each return or other tax document associated with the returned $6,909,000, complete the worksheet below. payment. • If the taxable estate is more than $6,909,000, enter 0on Form ET-706, line 3. Schedule A Unless exempt, all estates must complete either Part 1 or Part 2 of Schedule A. Part 1 is required if the decedent was a NYS resident at the time of death. Part 2 is required if the decedent was a nonresident of NYS at the time of death. Lines 11 and 23 Limited power of appointment created prior to September 1, 1930 – This particular power and the property covered by the power applies to property conveyed before September 1, 1930, that was subject to NYS estate or death taxes in the estate of the grantor of such power, by virtue of the law then in effect, with the expectation that a deferred tax would be paid by the grantee (donee) of the power upon the exercise of the power. The value of the property passing under such limited power of appointment must be added to the federal gross estate of a deceased resident, if the limited |
Enlarge image | ET-706-I (9/23) Page 5 of 6 power of appointment is exercised by the decedent by will or by a • that is real or tangible personal property having an actual situs disposition, such that if it were a transfer of property owned by the outside New York State at the time the gift was made. decedent, such property would be includable in the NYS gross estate as a transfer under IRC §§ 2035, 2036, 2037, or 2038. Include a copy of any federal Form 709 on which the taxable gift was reported. If additional space is needed, attach a separate piece of paper; include the taxpayer name and identification number, and Lines 13 and 26 label it Schedule D. If the QTIP was not reported on Schedule F as part of a federal gross estate return and included in the amount on lines 8 or 19, enter the amount on lines 13 or 26. Schedule E Residents complete Part 1 if your New York gross estate contains property located outside New York State. If there is no property Lines 16 and 29 located outside New York State, you can skip Schedule E, and enter Enter the amount of federal deductions not allowed for New York 0 on Schedule A, Part 1, line 16. Nonresidents complete Part 2. State purposes. Residents transfer from Schedule E, Part 1, line 50. Nonresidents transfer from Schedule E, Part 2, line 67. Part 1 – Residents Residents: If you do not have any amount reported on Schedule A, Column A – For lines 34 through 43 enter the corresponding line 9, enter 0on line 16. You do not need to complete Schedule E. amounts from federal Form 706, Part 5 Recapitulation, lines 14 through 22. Line 32 Column B – Enter the portion of column A that is directly related to If at the time of death, the decedent’s federal gross estate included property inside New York State (property taxes, maintenance, and any works of art loaned to a public gallery or museum located in so on); include any deductions directly related to intangible property New York State solely for exhibition purposes (including any that are in this column. in transit to or from a public gallery or museum in New York State), and no part of the gallery’s or museum’s net earnings benefit any Column C – Enter the portion of column A that is directly related to private stockholders or individuals, enter the value of the works of property outside New York State (property taxes, maintenance, and art on this line. so on). Column D – Enter the portion of column A that cannot be directly Schedule B tied to property either inside or outside New York State or to Property located outside New York State – Complete this intangible property. Some examples would be funeral expenses, schedule, if there is real and tangible personal property located executor commissions, attorney fees, accounting fees, and outside NYS that is included in the federal gross estate. If additional deductions for unsecured debts of the decedent. space is needed, attach a separate piece of paper; include the taxpayer name and identification number, and label it Schedule B. Part 2 – Nonresidents Column A – If you filed federal Form 706, for lines 51 through 60, Schedule C enter the corresponding amounts from federal Form 706, Nonresident estates (property located within New York State) Part 5 - Recapitulation, lines 14 through 22. If you filed federal List all property located in New York State. If additional space is Form 706-NA, enter the corresponding amount from Part III, needed, attach a separate piece of paper; include the taxpayer Schedule B, line 4 on line 54, and the corresponding amount from name and identification number, and label it Schedule C. line 6 on line 60. Column B – Enter the portion of column A that is directly related to Schedule D property inside New York State (property taxes, maintenance, and Note: Estates of decedents dying on or after January 1, 2019, so on). and before January 16, 2019, do not complete Schedule D. Schedule D is only completed for estates of decedents dying on or Column C – Enter the portion of column A that is directly related to after January 16, 2019. property outside New York State (property taxes, maintenance, and so on); include any deductions directly related to intangible property in this column. Taxable gifts Residents – An includible gift is any taxable gift under IRC § 2503 Column D – Enter the portion of column A that cannot be directly that was made during the preceding three-year period ending on the tied to property either inside or outside New York State or to decedent’s date of death and that was not already included in the intangible property. Some examples would be funeral expenses, decedent’s federal gross estate. However, a gift is not included if it executor commissions, attorney fees, accounting fees, and was made: deductions for unsecured debts of the decedent. • when the decedent was not a resident of New York State; Note: Since New York State Estate Tax Law does not conform • before April 1, 2014; with the federal portability rule, any amounts that are subject to the special rule of Regulation § 20.2010-2T(a)(7)(ii) that is reported on • between January 1, 2019, and January 15, 2019; or line 23 of Part 5 - Recapitulation, federal Form 706 do not apply for • that is real or tangible personal property having an actual situs New York State. See TSB-M-15(4)M for more details. outside New York State at the time the gift was made. Nonresidents – An includible gift is any taxable gift under Schedule F IRC § 2503 that was made during the preceding three-year period Litigation information – If the decedent was a plaintiff in any ending on the decedent’s date of death and that was not already litigation at the time of their death, or the estate has undertaken or included in the decedent’s federal gross estate. Gifts should only be is considering any litigation related to the decedent’s death, and included if the gift is of real or tangible personal property located in any recovery from the cause of action (litigation) will bring into the NYS or intangible personal property employed in a business, trade, estate an asset not otherwise in the estate, such as a recovery for or profession carried on in NYS. However, a gift is not included if it the decedent’s pain and suffering in a wrongful death action, mark was made: an Xon page 1, and in the area provided in Schedule F, describe • when the decedent was not a resident of New York State; the litigation in the area provided. Include the fair market value of the decedent’s interest in the cause of action as of the date of death. • before April 1, 2014; • between January 1, 2019, and January 15, 2019; or |
Enlarge image | Page 6 of 6 ET-706-I (9/23) The department will waive the penalty and interest that applies to the estate tax attributable to the value of a cause of action that is includable in the taxable estate of the decedent. Penalty and interest on this amount will be waived from the date an estate tax return is filed that discloses the cause of action, to the date of payment, but not more than one year after the date of settlement or final judgment. Damages for wrongful death are not includable in the gross estate, but damages for personal injury and pain and suffering are. Need help? Visit our website at www.tax.ny.gov • get information and manage your taxes online • check for new online services and features Telephone assistance Estate Tax Information Center: 518-457-5387 To order forms and publications: 518-457-5431 Text Telephone (TTY) or TDD Dial 7-1-1 for the equipment users New York Relay Service Privacy notification New York State Law requires all government agencies that maintain a system of records to provide notification of the legal authority for any request for personal information, the principal purpose(s) for which the information is to be collected, and where it will be maintained. To view this information, visit our website, or, if you do not have Internet access, call and request Publication 54, Privacy Notification. See Need help? for the Web address and telephone number. |