Wills, Trusts & Estates Attorney Highlights Strategies to Avoid New York Estate Tax 'Cliff'

Michael P. Enea of Enea, Scanlan & Sirignano, LLP shares planning tips to preserve family wealth

Published on Feb. 26, 2026

Got story updates? Submit your updates here. ›

Wills, trusts & estates attorney Michael P. Enea is shedding light on the importance of strategic planning to avoid New York's estate tax 'cliff.' Unlike the federal system, New York's 'cliff' can subject the full value of an estate to taxation if it exceeds the exemption threshold by more than five percent, resulting in a significantly higher tax burden than families anticipate. Enea outlines several effective planning strategies, including lifetime gifting, charitable giving, disclaimer and credit shelter trusts, and irrevocable life insurance trusts, to help families preserve more wealth for future generations.

Why it matters

New York's complex estate tax rules continue to pose challenges for individuals and families, making proactive planning essential, particularly for those with assets near or above the exemption amount. By understanding the nuances of the state's 'cliff' and implementing the right strategies, families can significantly reduce their tax burden and protect their wealth.

The details

New York's estate tax exemption is $7,350,000 as of 2026. However, if an estate exceeds approximately $7,717,500 - just five percent above the exemption - the estate loses the benefit of the exemption entirely, and the full value becomes subject to estate tax. In some cases, if the estate exceeds the exemption amount but remains under the five percent threshold, the estate can face an effective tax rate exceeding 100% on the amount over the threshold. Enea emphasizes that understanding how assets are calculated is critical, as New York taxable estates include not only assets held at death, but also certain gifts made within three years of death under the state's 'clawback' rule.

  • As of 2026, the New York State estate tax exemption is $7,350,000.

The players

Michael P. Enea

An associate at Enea, Scanlan & Sirignano, LLP in White Plains and Somers, N.Y., who focuses his practice on estate and tax planning strategies designed to preserve family wealth.

Enea, Scanlan & Sirignano, LLP

An AV preeminent rated law firm with offices in White Plains and Somers, N.Y. that concentrates on Elder Law; Medicaid Planning; Nursing Home and Home Care Applications; Estate Tax Planning; Wills, Trusts and Estates; Guardianships; Estate Litigation; Supplemental Needs Trusts; and Special Needs Planning.

Got photos? Submit your photos here. ›

What they’re saying

“Unlike the federal system, which taxes only the portion of an estate that exceeds the exemption, New York's 'cliff' can subject the full value of an estate to taxation if it exceeds the exemption threshold by more than five percent.”

— Michael P. Enea, Wills, Trusts & Estates Attorney

“Many individuals are surprised to learn that lifetime gifting, while an effective strategy, must be carefully timed and structured to avoid unintended tax consequences.”

— Michael P. Enea, Wills, Trusts & Estates Attorney

What’s next

Proactive planning is essential, particularly for families whose assets are near or above the exemption amount. With the right strategies in place, it is often possible to preserve significantly more wealth for future generations.

The takeaway

By understanding the nuances of New York's estate tax 'cliff' and implementing effective planning strategies, families can significantly reduce their tax burden and protect their wealth for the future.