On April 1, 2014, a budget bill was passed by the New York State legislature (the “New Law”). The New Law effects a major overhaul of the New York tax system, including the New York estate tax and taxation of New York trust beneficiaries. Although the New York State estate tax exclusion amount has been increased, this exclusion is largely not available to the wealthy. Additionally, for some trusts, accumulated or undistributed income, which was previously outside the scope of New York tax, will now be taxed upon distribution to a New York resident beneficiary.