ET-117: Releasing the NY Estate Tax Lien

What Is the New York Estate Tax Lien?

When a person dies owning real property in New York, the Tax Law places a lien on that property to secure the payment of any estate tax that might be due. The lien is effective as of the date of death and arises by operation of law — nobody files it, nobody records it, and it does not show up in a title search as a separate document. It simply exists.

Two points catch many families off guard. First, the lien applies even when the estate is far below New York’s estate tax threshold and not a dollar of tax is owed. Second, the lien applies only to real property located in New York State — the decedent’s house, land, or cooperative apartment — not to bank accounts or other assets.

To transfer the property free of the lien, the estate’s fiduciary (the executor or administrator) must request and then receive a release of lien from the New York State Department of Taxation and Finance. That release is ET-117 (Release of Lien of Estate Tax).

When You Need a Release

You need the ET-117 release any time estate real property is sold or transferred. The most common situations in Nassau County:

• Selling the estate house. The buyer’s title company will require the validated ET-117 before closing. Without it, they will not issue the title insurance policy and the sale cannot close.
• Transferring the property to an heir or beneficiary. Even a deed transfer from the executor to a beneficiary — with no sale involved — requires the lien to be released so the new owner takes clear title.
• Refinancing or borrowing against the property. Lenders treat the outstanding lien the same way title companies do: as a title defect that must be resolved first.

Our Selling Estate Property guide covers the full sale process — Letters, restrictions, closing documents — of which the ET-117 is just one step (often the slowest one).

The Forms: ET-117, ET-30, ET-85, and ET-706

The application always has two parts: the ET-117 itself, plus one of three companion forms that tells the Tax Department which situation the estate is in.

ET-117 — Release of Lien of Estate Tax

This is the release document itself. You fill it out with the decedent’s information and the property description; the Tax Department reviews it, validates it, and returns it to you. Use one ET-117 per county — if the estate owns property in more than one county, file a separate form for each. Cooperative apartments use a separate version of the form, even in the same county. You can download the official form from our ET-117 form page.

ET-30 — Application for Release(s) of Estate Tax Lien

Use the ET-30 with the ET-117 when no New York estate tax return is required, you are the court-appointed executor or administrator, and fewer than nine months have passed since the date of death. This is the most common path for Nassau County estates that act promptly: most are below the filing threshold, and if Letters are issued within the first year, the ET-30 is usually the right form.

ET-85 — New York State Estate Tax Certification

Use the ET-85 with the ET-117 when no return is required but more than nine months have passed since death, or when no executor or administrator has been appointed. The ET-85 also covers certain situations where a return will be required but has not yet been filed. It is the fallback path when the estate does not qualify for the ET-30.

ET-706 — New York State Estate Tax Return

If the estate is large enough that a New York estate tax return is required, the lien release is requested along with the return: file the ET-117 with the ET-706. The Tax Department issues the release once the return is processed and any tax is paid — or when it determines the property can be released while other assets cover the tax. For filing thresholds, exemptions, and New York’s cliff effect, see our Estate Tax Guide.

Who Issues the Release

The release is issued by the New York State Department of Taxation and Finance — not the Nassau County Surrogate’s Court, not the County Clerk, and not the title company. The application is mailed to the state’s estate tax processing center in Albany. This is a frequent point of confusion: Letters Testamentary come from the court, but the lien release is an entirely separate state filing.

Once you receive the validated ET-117, deliver it to your closing attorney or title company, and file the validated release with the Nassau County Clerk so it appears in the property record.

Realistic Timing

The Tax Department states an average processing time of three to four weeks for a complete application, plus seven to ten business days of mailing each way. That is the best case. In practice, Nassau County executors should budget more:

• Incomplete applications — missing property description, unsupported values, uncertified Letters — get returned or stalled, and the clock starts over.
• During backlog periods, processing can stretch to two or three months or longer. There is no expedited process.
• If the estate must file the ET-706, the release waits on the return being processed and the tax being paid — a much longer timeline.

Documents the Executor Needs

Before preparing the application, gather the following. A complete application the first time is the best way to keep to the three-to-four-week timeline:

• Certified Letters from the court. A certified copy of the Letters Testamentary or Letters of Administration showing your authority as fiduciary. If no one has been appointed, the ET-85 path documents who is applying and why.
• Death certificate. A certified copy showing the date and place of death.
• Legal description of the property. The property’s section, block, and lot as they appear on the deed, title report, or property tax bill. The ET-117 asks for this description exactly.
• Date-of-death value. An appraisal, market analysis, or assessment supporting the property’s value as of the date of death. Stated values should be defensible if the department asks.
• Decedent’s information. Full legal name, Social Security number, domicile at death, and date of death.
• The right companion form. The completed ET-30, ET-85, or ET-706, depending on the estate’s situation described above.

Step-by-Step Process

1. Confirm which companion form applies. Is a return required? Is a fiduciary appointed? Have nine months passed? The answers determine whether you file the ET-30, ET-85, or ET-706 with your ET-117.
2. Gather the documents. Certified Letters, death certificate, property description, and date-of-death value.
3. Complete the ET-117 and the companion form. One ET-117 per county; a separate form for cooperative apartments.
4. Mail the package to the state processing center. The current mailing address is listed in the form instructions on the Tax Department’s site. It is not filed with the Surrogate’s Court.
5. Wait for the department’s review. Three to four weeks on average for a complete application, plus mailing. Mark your calendar and follow up if nothing arrives within six weeks.
6. Receive the validated ET-117. The department returns the countersigned release. Keep the original — your closing depends on it.
7. Deliver and record it. Give the validated ET-117 to your title company or closing attorney, and file the release with the Nassau County Clerk.

Help Preparing the Forms

The forms themselves are short, but picking the right path (ET-30 vs. ET-85), describing the property exactly as the deed does, and assembling a complete package is where most applications stall. If you would rather not assemble it alone, there is a document-preparation path:

Frequently Asked Questions

Do I need the ET-117 even if the estate owes no tax?

Yes. The lien attaches automatically on the date of death, by operation of law, regardless of the estate’s size. Most Nassau County estates that need an ET-117 owe no estate tax at all — they still need the formal release to sell or transfer the property.

What is the difference between the ET-117 and the ET-30?

The ET-117 is the release document that the Tax Department validates and returns. The ET-30 is the application that accompanies it in the most common case: no return is required, you are the appointed fiduciary, and fewer than nine months have passed since death. They are always filed together — the ET-117 never travels alone.

How long does the release take to arrive?

The state says three to four weeks of processing for a complete application, plus seven to ten business days of mail each way. Budget one to two months in total, and more during backlog periods or if the application is incomplete. If the estate must file the ET-706, expect a considerably longer timeline.

How much does the lien release cost?

The Department of Taxation and Finance does not charge for issuing the release. Your real costs are certified copies of Letters from the court, any appraisal you need to support the property value, and any recording cost at the County Clerk.

Can I list the house for sale while waiting for the ET-117?

Yes. You can list the property, accept offers, and sign a contract while the application is pending. What you cannot do is close — the title company will hold the closing until the validated ET-117 is in hand. That is why filing early is the only real protection for your timeline.

What if the property spans more than one county?

File a separate ET-117 for each county where the estate owns real property, and a separate form for cooperative apartments even in the same county. Each validated release is then filed with that county’s clerk.