SYRACUSE, NY - Families settling estates in New York face strict filing deadlines and significant penalties for late or incomplete estate tax returns, even when no federal estate tax is owed. Syracuse estate planning attorney Frederick P. Davies of Davies Law Firm (https://davieslawfirm.com/estate-tax-filings-in-new-york-deadlinesrequirements-and-penalties/) is providing guidance on New York's independent estate tax system, which imposes a lower exemption threshold than federal tax and includes penalties plus interest for missed deadlines.
According to Syracuse estate planning attorney Frederick P. Davies, New York's estate tax operates independently from the federal system, with a 2025 exemption of $7.16 million compared to the federal exemption of $13.99 million. Many Central New York estates owe state tax even when no federal tax is due. "The state's calculation also includes a cliff provision that can eliminate the exemption entirely if the taxable estate exceeds the threshold by more than 5 percent," explains Davies.
Syracuse estate planning attorney Frederick P. Davies notes that estate tax returns are due nine months after the date of death, and the deadline cannot be extended for payment even if a filing extension is granted. Executors who miss the filing deadline face a penalty of 5 percent of unpaid tax per month, capped at 25 percent, plus daily compounding interest. "Executors who distribute assets before paying estate taxes can face personal liability if insufficient funds remain," Davies adds.
Attorney Davies emphasizes that New York residents are taxed on worldwide assets, while non-residents are taxed only on New York property. Life insurance proceeds, retirement accounts, and jointly owned property all count toward the gross estate calculation. The firm advises executors to obtain professional appraisals for real estate and closely held business interests, as property tax assessments and online estimates are not acceptable for filing purposes.
Davies Law Firm handles estate tax filings throughout Syracuse, Onondaga County, and Central New York. The team works with executors to calculate tax obligations, prepare Form ET-706, and meet all Department of Taxation and Finance requirements. "Starting early with a clear inventory of assets valued as of the date of death helps prevent unpleasant surprises for families," notes Davies.
The attorneys highlight that New York does not allow portability of unused exemptions between spouses, unlike federal estate tax rules. Planning strategies such as charitable gifts, timing of deductions, and inclusion of a formula charitable clause can help estates stay below the cliff threshold. "Small moves can save hundreds of thousands of dollars for families in Syracuse and across Central New York," Davies observes.
For executors and administrators managing estates in Onondaga County Surrogate's Court, understanding filing obligations before making distributions protects beneficiaries and avoids personal liability. Contacting an experienced estate planning attorney may help navigate deadlines, documentation requirements, and strategies to reduce penalties and interest.
About Davies Law Firm:
Davies Law Firm is a Syracuse-based law firm dedicated to estate planning, elder law, and estate administration throughout Central New York. Led by attorneys Frederick P. Davies and William P. Davies, the firm helps families with living trusts, Medicaid planning, estate tax filings, and probate matters in Syracuse, Onondaga County, and surrounding areas. For consultations, call (315) 472-6511.
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Company Name: Davies Law Firm
Contact Person: Frederick P. Davies
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Phone: (315) 472-6511
Address:210 E Fayette St
City: Syracuse
State: New York 13202
Country: United States
Website: https://davieslawfirm.com/
