5 facts to know about estate planning and administration

On Behalf of Marcus, Gould & Sussman, LLP | Mar 13, 2026 | Estate Planning |

Estate planning is more than drafting a will. It is a comprehensive process that determines how your assets will be managed during your lifetime and distributed after your death.

Estate administration refers to the steps taken to carry out those plans. Understanding a few key facts can help you avoid confusion and ensure your wishes are honored.

1. Federal estate taxes affect few estates

Many people assume their estate will face significant federal tax. In reality, the federal estate tax applies only to very large estates that exceed a high threshold set by law, and therefore, most individuals will not owe federal estate tax.

2. Inheritance tax is different from estate tax

Estate tax is paid by the estate before assets are distributed. Inheritance tax, where it exists, may be imposed on the person receiving the assets. There is no federal inheritance tax, but a few states apply one under specific conditions. Knowing the distinction helps prevent misunderstandings about who is responsible for payment.

New York does not have an inheritance tax, but it does have its own estate tax. It has lower thresholds than the federal estate tax.

For 2026 deaths, the federal estate tax threshold is $15,000,000 and the New York State exemption is $7,350,000.

3. Lifetime gifts may affect your estate plan

Giving assets during your lifetime can influence your overall estate strategy. Federal law allows annual gifts up to a certain amount per recipient without reducing a lifetime exemption. Larger gifts may need to be reported, though they often do not trigger immediate tax. Careful planning ensures gifts align with long-term goals.

4. Probate can sometimes be avoided

Probate is the court-supervised process of distributing assets, and it is time-consuming and public. Certain tools, such as living trusts, beneficiary designations and transfer on death arrangements, may allow assets to pass directly to beneficiaries without probate.

5. Estate plans should be updated regularly

Major life events such as marriage, divorce, birth of a child or significant changes in assets should prompt a review of your estate plan. Outdated documents can create confusion or unintended outcomes during administration.

Estate planning and administration involve both financial and legal considerations. Seeking reliable legal guidance can help ensure your plan reflects current laws and protects your family’s interests effectively.