N.Y. Tax Law § 982: Lien for estate tax

§ 982. Lien for estate tax. (a) General. Unless the tax imposed by

this article is sooner paid in full, it shall be a lien upon all

property includible in the New York gross estate of the decedent for

fifteen years from the date of death of the decedent, except that such

part of the New York gross estate as is used for the payment of charges

against the estate and expenses of its administration, allowed by any

court having jurisdiction thereof, shall be divested of such lien. In

the case of a decedent who at his death was not a resident of New York

state, the lien shall apply to all property subject to tax under this

article.

(b) Prior mortgages on real property. The lien under subsection (a) of

this section shall be subject to the lien of any mortgage indebtedness

on real property incurred in good faith prior to the time when the tax

under this article became a lien. Such real property may be sold and

conveyed free from any such tax lien in an action to foreclose such

mortgage to which the people of the state of New York shall have been

made a party defendant by reason of the existence of the lien for the

tax. The lien may then attach to any surplus moneys which result from

such sale, to be determined in the proceedings for the distribution of

such surplus moneys.

(c) Discharge of lien.--Subject to such rules or regulations as the

commissioner may prescribe, the commissioner may issue a certificate of

discharge of any or all of the property subject to the lien imposed by

this section if he or she finds that the liability secured by such lien

has been fully satisfied or provided for, upon application for such

discharge. A certificate of discharge issued under this subsection shall

be held conclusive that the lien upon the property covered by the

certificate is extinguished.

(d) Recording of certificate of discharge. A certificate of discharge

issued under subsection (c) of this section may be recorded in the

office of the recording officer of the county where real property

described therein is situated.

(e) Power of executor to sell. The executor shall have full power to

sell so much of the property of the estate as will enable him to pay the

tax imposed by this article in the same manner that he is permitted by

law to do for payment of debts of the estate.