2023 New York Laws › TAX - Tax › Article 26 - Estate Tax › Part 2 - Returns and Payment of Tax › 975 - Liability for Tax.

§ 975. Liability for tax. (a) Duty of executor to pay tax. (1) The tax
imposed  by  this  article  shall  be  paid  by  the executor, who shall
thereupon charge the same  against  and  collect  it  from  the  persons
interested  in  the estate in accordance with the rules of apportionment
of section 2-1.8 and other relevant provisions of  the  estates,  powers
and trusts law.
(2)  If  the tax imposed by this article, or any part thereof, is paid
by, or collected out of, that part of the estate passing to  or  in  the
possession  of  any  person  other  than the executor in his capacity as
such, such person shall be entitled to reimbursement out of any part  of
the  estate  still undistributed or by a just and equitable contribution
by the persons whose interest in the estate of the decedent  would  have
been  reduced  if  the  tax had been paid before the distribution of the
estate or whose interest is subject to equal or prior liability for  the
payment  of  taxes,  debts or other charges against the estate, it being
the purpose and intent of this section that so far as is practicable and
unless otherwise directed by the will or non-testamentary instrument  of
the  decedent,  the  tax  shall  be  paid  out  of the estate before its
distribution.
(b) Liability of executor. An executor who pays, in whole or in  part,
any  debt  due by the estate for which he or she acts, except for a debt
owed to the United States or to New York state, or who  distributes  any
asset  of the estate, prior to the payment in full of the tax imposed by
this article, shall be answerable in his or her own  person  and  estate
for  the payment of such tax to the extent that the assets of the estate
have been so paid out or distributed.  The  liability  of  the  executor
under  this  subsection  shall  continue  until  his or her discharge as
provided in section nine hundred eighty-one of this article.
(c) Liability of life insurance  beneficiaries.  Unless  the  decedent
directs  otherwise in his or her will, if any part of the New York gross
estate on which tax has been paid consists of proceeds  of  policies  of
insurance  on the life of the decedent receivable by a beneficiary other
than the executor, the executor shall be entitled to recover  from  such
beneficiary  such  portion of the total tax paid as the proceeds of such
policies bear to the federal taxable estate, reduced by the value of any
real or tangible personal property located outside New York  state,  and
increased  by  any  federal  estate  tax deductions attributable to such
property. If there is more than one such beneficiary, the executor shall
be entitled to recover from such beneficiaries in the same ratio. In the
case of such proceeds receivable by the surviving spouse of the decedent
for which a deduction is allowed under section two thousand fifty-six of
the internal revenue code (relating to marital deduction), this  section
shall not apply to such proceeds.
(d)  Liability of recipients of property over which decedent had power
of appointment. Unless the decedent directs  otherwise  in  his  or  her
will, if any part of the New York gross estate on which the tax has been
paid  consists  of  the  value  of property included in the gross estate
under section two thousand forty-one of the internal revenue  code,  the
executor  shall  be  entitled  to recover from the person receiving such
property by reason of the exercise, nonexercise, or release of  a  power
of  appointment  such portion of the total tax paid as the value of such
property bears to the federal taxable estate, reduced by  the  value  of
any  real  or tangible personal property located outside New York state,
and increased by any federal estate tax deductions attributable to  such
property.  If  there is more than one such person, the executor shall be
entitled to recover from such persons in the same ratio. In the case  of
such property received by the surviving spouse of the decedent for which
a  deduction  is  allowed  under  section  two thousand fifty-six of the

internal revenue code (relating  to  marital  deduction),  this  section
shall not apply to such property.
(e)  Liability  of  transferees and others. If the tax imposed by this
article is not paid when due,  then  the  spouse,  transferee,  trustee,
surviving  tenant, person in possession of the property by reason of the
exercise,  nonexercise,  or  release  of  a  power  of  appointment,  or
beneficiary,  who  receives, or has on the date of the decedent's death,
property included in the New York gross estate  to  the  extent  of  the
value,  at  the time of the decedent's death, of such property, shall be
personally liable for such tax. Any part of such property transferred by
(or transferred by a transferee of) such  spouse,  transferee,  trustee,
surviving  tenant,  person  in  possession  of property by reason of the
exercise,  nonexercise,  or  release  of  a  power  of  appointment,  or
beneficiary,  to  a  bona  fide purchaser, mortgagee, or pledgee, for an
adequate and full consideration in  money  or  money's  worth  shall  be
divested of the lien provided in section nine hundred eighty-two of this
article  and  a  like lien shall then attach to all the property of such
spouse, transferee, trustee, surviving  tenant,  person  in  possession,
beneficiary,   or  transferee  of  any  such  person,  except  any  part
transferred to a bona fide  purchaser,  mortgagee,  or  pledgee  for  an
adequate  and  full  consideration  in money or money's worth. Provided,
however, where any interest in such property was held  by  the  decedent
and  the  decedent's  surviving  spouse as tenants by the entirety, such
interest in such property shall be divested  of  the  lien  provided  in
section nine hundred eighty-two of this article.