Samantha Lauri and Kenneth Page Author Article Dissecting Potential Impact of Mamdani Estate Tax Proposals in the New York Law Journal

Samantha Lauri and Kenneth Page authored an article for the New York Law Journal on the potential impacts of new estate tax proposals by New York City Mayor Zohran Mamdani and New York Governor Kathy Hochul.

The proposals are aimed at addressing New York City’s budget gap and include a significantly reduced estate tax exemption, increased rates and new elements affecting nonresident property owners.

The article explores how these proposals could expand estate tax exposure for both residents and nonresidents, create liquidity challenges for estates, and influence property ownership and planning decisions.

“New York estate tax is generally due within nine months of a decedent’s death,” the authors write. “If the recent proposals were enacted, more estates could face liquidity challenges, potentially requiring the sale of assets on an expedited basis in order to satisfy estate tax obligations and avoid interest and penalties.”

Lauri and Page also highlight key considerations for individuals, including the importance of proactive estate planning in light of potential changes to exemption thresholds, tax rates and property-related surcharges.

“In this environment, thoughtful estate planning, undertaken well in advance, can provide flexibility, mitigate tax exposure, and help preserve family wealth across generations,” the article stated. “Common techniques include lifetime gifting to remove assets and future appreciation from the taxable estate, the use of irrevocable trusts to shift wealth to future generations, and spousal planning strategies that fully utilize available estate tax exemptions.”

Read the article.