Wills, Trusts & Estates Attorney Michael P. Enea Highlights Strategies to Avoid the New York Estate Tax “Cliff”

WESTCHESTER COUNTY, NY / ACCESS Newswire / February 26, 2026 / With New York’s complex estate tax rules continuing to pose challenges for individuals and families, wills, trusts & estates attorney Michael P. Enea, Esq., associate at Enea, Scanlan & Sirignano, LLP in White Plains and Somers, N.Y., is shedding light on the importance of strategic planning to avoid the estate tax “cliff.”

“Unlike the federal system, which taxes only the portion of an estate that exceeds the exemption, New York’s ‘cliff’ can subject the full value of an estate to taxation if it exceeds the exemption threshold by more than five percent,” said Mr. Enea, who focuses his practice on estate and tax planning strategies designed to preserve family wealth. “Without proper planning, this can result in a significantly higher tax burden than families anticipate.”

As of 2026, the New York State estate tax exemption is $7,350,000. However, if an estate exceeds approximately $7,717,500 – just five percent above the exemption – the estate loses the benefit of the exemption entirely, and the full value becomes subject to estate tax. In some events, if the estate exceeds the exemption amount but remains under the five percent threshold, the estate can face an effective tax rate exceeding 100 percent on the amount over the threshold.

Mr. Enea emphasizes that understanding how assets are calculated is critical. New York taxable estates include not only assets held at death, but also certain gifts made within three years of death under the state’s “clawback” rule. “Many individuals are surprised to learn that lifetime gifting, while an effective strategy, must be carefully timed and structured to avoid unintended tax consequences,” he explained.

To mitigate exposure to the estate tax cliff, Mr. Enea outlines several effective planning strategies:

Lifetime gifting: Taking advantage of the annual federal gift tax exclusion ($19,000 per recipient in 2026), as well as the federal estate and gift tax exemption (currently $15,000,000 per individual over a lifetime), can help reduce the size of a taxable estate while removing future appreciation from the estate.

Charitable giving and “Santa Claus” provisions: Strategic charitable bequests can bring an estate below the taxable threshold, potentially saving families substantial sums in taxes.

Disclaimer and credit shelter trusts: These tools allow married couples to maximize use of both spouses’ exemptions, particularly important given that New York does not allow portability between spouses.

Irrevocable life insurance trusts: Properly structured life insurance trusts can provide liquidity to pay estate taxes without increasing the taxable estate.

“Proactive planning is essential, particularly for families whose assets are near or above the exemption amount,” Mr. Enea added. “With the right strategies in place, it is often possible to preserve significantly more wealth for future generations.”

Mr. Enea’s practice focuses on wills, trusts and estates, and advanced tax planning strategies designed to help clients preserve and protect family assets. He is currently pursuing a Master of Laws in Taxation at New York University School of Law, further strengthening his knowledge of estate and trust taxation.

Enea, Scanlan & Sirignano, LLP is located at 245 Main Street, Suite 500 in White Plains and 339 Route 202, Suite 100 in Somers. For more information or to schedule a consultation, call 914-948-1500 or visit www.esslawfirm.com.

About Enea, Scanlan & Sirignano, LLP
Enea, Scanlan & Sirignano, LLP is an AV preeminent rated law firm with offices in White Plains and Somers, N.Y. The practice concentrates on Elder Law; Medicaid Planning; Nursing Home and Home Care Applications; Estate Tax Planning; Wills, Trusts and Estates; Guardianships; Estate Litigation; Supplemental Needs Trusts; and Special Needs Planning. Enea, Scanlan & Sirignano, LLP serves Westchester, Rockland, Putnam, the Bronx, Manhattan, Long Island and Queens and is committed to providing the highest quality legal services to seniors, the disabled and their families. Visit the firm online at www.esslawfirm.com.

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SOURCE: Enea, Scanlan & Sirignano, LLP

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