Under the new law, deathbed gifts, and by that, New York means a gift that was made within three years of death, are, in a sense, added back to the tax space. What the law says is that a New Yorker’s taxable estate will consist not only of assets in its federal estate, but also the amount of any gifts that she made within three years of death. This is a particularly expensive change for New Yorkers because while New York state taxes are generally deductible for federal purposes, the deduction is available only for New York taxes paid on amounts included in the federal estate. This add-back does not represent an amount includable in the federal estate and so will not be deductible. That means on deathbed gifts, a New Yorker is gonna pay a total estate tax not of 49.6, but instead of 56 percent.