Brooklyn real estate values have climbed for years, and many Kings County families are surprised to learn their estate may owe New York estate tax even when they don’t feel “wealthy.” A brownstone in Park Slope, a multi-family in Bay Ridge, and a retirement account together can quietly cross the line. The most expensive errors come from misunderstanding how the tax actually works.
Mistake #1: Assuming Only the Ultra-Rich Owe NY Estate Tax
For 2026, the New York estate tax exclusion is $7,350,000. Estates below that amount generally owe no New York estate tax. But for Brooklyn homeowners, that threshold is easier to reach than people think once you add property, life insurance, and retirement savings. Reviewing your total taxable estate is the first step, not an afterthought.
Mistake #2: Ignoring the New York “Cliff”
New York does not phase its tax in gently. Once a taxable estate exceeds 105% of the exclusion, the entire estate is taxed, not just the excess. In 2026 that cliff sits at $7,717,500. Cross it and you lose the benefit of the exclusion altogether. A Greenpoint family sitting just over the line can owe dramatically more than a family just under it, which is why precise planning around the cliff matters so much.
Mistake #3: Confusing Federal and State Rules
New York has no portability between spouses the way federal law does, and the state exclusion is far lower than the federal one. Relying on a generic online article about “the” estate tax can leave a Brooklyn family exposed to a New York bill they never planned for. Both systems must be considered together.
Mistake #4: Believing a Revocable Trust Saves Estate Tax
A revocable living trust under EPTL Article 7 is a useful tool: it can help avoid Surrogate’s Court probate and keep matters private. But because you keep control, the assets remain part of your taxable estate. For actual estate tax reduction, families generally look to irrevocable trusts and lifetime gifting strategies. Mixing up these goals is one of the most common planning errors we see in Kings County.
Mistake #5: Leaving Property to Pass by Default
If you die without a valid will under EPTL §3-2.1, New York’s intestacy rules in EPTL Article 4 decide who inherits, and the estate still goes through Surrogate’s Court under the SCPA. Intestacy can split your Brooklyn home in ways you never intended and offers zero tax planning. A coordinated plan, by contrast, lets you direct assets and reduce exposure to the cliff.
Building a Plan That Fits Brooklyn
Effective planning often combines a will, a durable power of attorney under GOL §5-1513, and a health care proxy under PHL Article 29-C, layered with trust and gifting strategies where appropriate. The right mix depends on the size and makeup of your estate, your family situation, and whether you own multiple Brooklyn properties.
A Note on Getting Advice
Estate tax rules change, and the New York cliff makes small differences in value enormously important. Before making decisions about your Brooklyn estate, speak with a qualified New York estate planning attorney who can review your specific situation and design a plan tailored to current law.
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