One of the most confusing parts of handling a deceased person’s estate, when you are named the executor, is understanding what tax obligations you must abide by. In New Jersey, you may have to deal with both estate taxes and also an inheritance tax. Beginning in 2017, New Jersey made the decision to change their rules regarding estate taxes for people who pass away this year. Previously, the case was that there was an exemption on estate taxes at $675,000. However, in 2017, that exemption was raised to $2 million for those who pass away between January 1, 2017, and January 1, 2018.
Those in New Jersey who pass away after January 1, 2018, will not have the NJ Estate Tax imposed upon the transfer of their estate. A Transfer Inheritance Tax is applicable in situations where real or personal property is transferred from the decedent (the deceased person) to a person who they have deemed a beneficiary. It is important to note that if the person who passed away was not New Jersey resident when they passed away, there is not an estate tax applicable in that situation. It is important that the executor makes sure all of the taxes are paid on behalf of the decedent.
If you have questions regarding inheritance and estate taxes in New Jersey, you may want to consider speaking with an experienced estate administration attorney who can provide you with assistance.
Juan C. Velasco, Esq. is a trusted attorney for bankruptcy, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.