Right to recover state estate and gift taxes where decedent · as in force on May 31, 2026
§ 2-1.14 Right to recover state estate and gift taxes where decedent
retained interest
(a)(1) If any part of the gross tax estate on which tax has been paid consists of the value of property included in the gross estate by reason of section two thousand thirty-six of the internal revenue code (relating to transfers with retained life estate), the decedent's estate shall be entitled to recover from the person receiving the property the amount which bears the same ratio to the total tax under this chapter which has been paid as
(A) the value of such property bears to
(B) the taxable estate.
(2) Paragraph one shall not apply if the decedent otherwise directs in a provision of his will (or a revocable trust) specifically referring to this section.
(b) For purposes of this section, if there is more than one person receiving the property, the right of recovery shall be against each such person.
(c) In the case of penalties and interest attributable to the additional taxes described in subsection (a) of this section, rules similar to the rules of subsections (a) and (b) of this section shall apply.
(d) No person shall be entitled to recover any amount by reason of this section from a trust to which section six hundred sixty-four of the internal revenue code applies (determined without regard to this section).
When taxable property is included because the decedent retained a life estate under Internal Revenue Code § 2036, the estate may recover from each recipient that property’s proportional share of New York tax, including related penalties and interest. ★ A will or revocable trust may override this only by specifically referring to this section, and no recovery is allowed from a trust governed by Internal Revenue Code § 664.
Marked in the text: penalties, time limits, sums of money. Editorial emphasis added by this edition; it does not appear in the statute as enacted.
This provision appears in Volume 1 — The Surrogate's Court in Plain English; Volume 3 — The Surrogate's Court: Court Rules & the EPTL; Volume 5 — Your Career: Surrogate's Court in Plain English.