As the implications of COVID-19 continue to evolve, we stand committed to providing insight from across the firm to help you respond to any legal and business issues that may arise during these uncertain times.
The COVID-19 pandemic (commonly referred to as the “Coronavirus”) has disrupted economic life. In an example of a response to the reality of social-distancing and closures, Governor Cuomo, by Executive Order No. 202.7 (“the Order”), will allow notarial acts required under New York State law to be performed using audio-video technology (while not mentioned in the Order, presumably, Skype, Zoom or other similar technology).
As we wrote here earlier this year, Governor Cuomo proposed to extend the “clawback law,” which had expired on January 1, 2019, in his fiscal year 2020 Executive Budget. As a reminder, the clawback law pulled the value of all taxable gifts made within three years of a New York resident taxpayer’s death back into the New York resident taxpayer’s estate for New York estate tax purposes.
After the Tax Cuts and Jobs Act of 2017 (the “2017 Act”), wealthy taxpayers have the opportunity to “lock in” the temporary increase in the federal estate and gift tax exemption by making large lifetime gifts. Governor Cuomo’s Fiscal Year 2020 Executive Budget proposes extending a law that could subject such gifts to New York estate tax.