New Jersey Inheritance Tax
New Jersey Inheritance Tax Rates (Applicable to estates of decedents dying on or after January 1, 1985)
Husband/Wife: After January 1, 1985, transfers are totally exempt.
Class A: Beneficiaries: Father, mother, grandparents, natural or legally adopted child or issue of said child or decedent step-child and certain mutually acknowledged children.
No tax on transfers to any of this class if decedent died on or after July 1, 1988.
Class C: Brother or sister of a decedent, spouse of a child of a decedent: $25,000 exemption of transfers if decedent died on or after July 1, 1988. Rate starts at 11% on amounts over $25,000.
Class D: Any other transferee, distributee or beneficiary (other than those entirely exempt such as charities and government agencies listed in class E) – $499.00 exempt, rate starts at 15%.
If you are interested in transferring a gift to someone in Class C or Class D then certain planning should be done in the will or you should consider the option of giving a qualified gift before you pass away.
Example: Your neighbor’s son has mowed your grass the last four years because you have been physically unable to get out and do it. This year you contracted a lawn service but want to do something to honor the young man’s gift. You would like to leave them a gift in your will in excess of $500. You can give the gift in the will and include into the document that your estate will pay all inheritance taxes or you can give the gift today and let him use it toward that car he has his eye on.
Published by: admin on April 30th, 2009 | Filed under Estate Planning
One Response to “New Jersey Inheritance Tax”
Leave a Comment
Categories
James Schroeder, Esq.
Archives
- September 2010
- August 2010
- May 2010
- April 2010
- March 2010
- December 2009
- November 2009
- October 2009
- May 2009
- April 2009
- February 2009
- January 2009
- December 2008
- November 2008
August 5th, 2010 at 5:41 pm
thanks, very well written post, found it through a random google search and i shared it on my digg account