Report in Support of Extending the Effectiveness of the Estate Tax Treatment of Dispositions to Surviving Spouses Who are Not U.S. Citizens
SUMMARY
The Estate and Gift Taxation Committee and the Trusts, Estates and Surrogate’s Courts Committee, with an assist by a keen-eyed City Bar member at large, submitted a report in support of A.10444/S.9398, which would amend chapter 538 of the laws of 2013, amending the tax law relating to the estate tax treatment of dispositions to surviving spouses who are not United States citizens, in order to extend the expiration (“sunset”) of the law until July 1, 2025. This three-year extender is in keeping with the City Bar’s initial support for the law in 2013, when the committees supported legislation which amended section 951 of the New York Tax Law for the purpose of (1) reducing legal and administrative expenses and (2) simplifying the procedure for obtaining a marital deduction for a disposition to a non-U.S. citizen surviving spouse where no federal estate tax return is required.
BILL INFORMATION
A.10444 (AM Quart) / S.9398 (Sen. Cooney) – amends chapter 538 of the laws of 2013, amending the tax law relating to the estate tax treatment of dispositions to surviving spouses who are not United States citizens, in relation to extending the expiration of the provisions thereof (NYS 2022)
OUTCOME
Signed by the Governor, Chp. 357 – June 30, 2022
REPORT
REPORT ON LEGISLATION BY THE ESTATE AND GIFT TAXATION COMMITTEE AND TRUSTS, ESTATES AND SURROGATE’S COURTS COMMITTEE
A.10444 (M. of A. Quart)
S.9398 (Sen. Cooney)
AN ACT to amend chapter 538 of the laws of 2013, amending the tax law relating to the estate tax treatment of dispositions to surviving spouses who are not United States citizens, in relation to extending the expiration of the provisions thereof
THIS BILL IS APPROVED
In 2013, the New York City Bar Association, by and through its Estate and Gift Taxation and Trusts, Estates and Surrogate’s Courts Committees, supported legislation which amended §951 of the New York Tax Law for the purpose of (1) reducing legal and administrative expenses and (2) simplifying the procedure for obtaining a marital deduction for a disposition to a non-U.S. citizen surviving spouse where no federal estate tax return is required. That report is attached hereto.[1]
The Committees have reviewed the 2013 memo, as well as A.10444/S.9398, which would extend the effectiveness of the estate tax treatment of dispositions to surviving spouses who are not U.S. citizens to July 1, 2025. We stand by our original memo and support the proposed legislation for the reasons stated therein. As such, the City Bar urges the enactment of A.10444/S.9398 into law.
Estate & Gift Taxation Committee
David E. Stutzman, Chair
Trusts, Estates & Surrogate’s Courts Committee
Angelo M. Grasso, Chair
May 2022
Footnotes
[1] The report can be found online at https://www2.nycbar.org/pdf/report/uploads/20072276-Amendingtaxlawreestatetaxtreatmenttonon-citizensurvivingspouses.pdf.
