New York Estate Law Changes for 2026
Can you believe that 2025 is more than five sixths of the way finished? Perhaps it is time to take a page from Generation Z and “lock in” to accomplish your goals before 2025 ends, instead of waiting until 2026 to make resolutions for the year. Even if you are inclined to make resolutions every January, some of your estate planning goals can’t wait, because some changes in laws related to estate planning will go into effect at the beginning of 2026. In some cases, the end of this year is your last chance to make some money-saving moves. In others, new opportunities will arise at the beginning of 2026. Meanwhile, new changes to federal policies will mean greater financial constraints for seniors who are already retired and for those who plan to retire in the near future. For help getting your estate plan into shape for 2026, contact a Bronx estate planning lawyer.
Opportunities to Save on Taxes
The new federal tax legislation includes plenty of perks for middle income and high-income individuals. These are some ways that you might see your tax burden get lower in 2026:
- Starting in 2026, you can deduct the full amount of your state and local taxes (SALT). Previously, the maximum SALT deduction you could claim was $10,000.
- The federal gift tax and estate tax exemptions will remain the same. This is good news for New York, because it is one of only a few states with estate taxes.
- The federal government automatically sets up childhood investment accounts for children born between 2025 and 2028. These are an excellent destination for your cash gifts exempt from the annual gift tax exclusion.
Are You Ready for the Stricter Rules for Medicaid?
It has long been the case that the rich get richer while everyone else struggles financially, and that is especially true under the new policies. Estate planning websites are full of aspirational content about leaving your heirs a generous inheritance, but most people’s reality is that they will eventually have to rely on Medicaid for nursing home care, which means strategically spending down their assets or transferring them to a Medicaid asset protection trust.
The federal budget cuts put current and future Medicaid beneficiaries in a bind. For example, you can expect longer wait times when you apply for Medicaid. There is also a reduced budget for in-home care services. Furthermore, there are stricter eligibility requirements for Medicaid nursing home care benefits. This means that you should buy long-term care insurance or hybrid life insurance, if you can possibly afford it. If you have missed the boat on insurance because of your age or pre-existing medical conditions, you should get started on a Medicaid asset protection strategy.
Schedule a Confidential Consultation With a Bronx Estate Planning Attorney
An estate planning lawyer can help you adapt your estate plan to align with recent policy changes regarding taxes and Medicaid. Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.
Source:
health.ny.gov/health_care/medicaid/program/medicaid_modernization/