This Issues and Insights discusses important changes to New Jersey tax law for high-net-worth residents.
- On January 1, 2017, the New Jersey estate tax exemption increased to $2,000,000 per person, and the estate tax was completely repealed as of January 1, 2018.
- The New Jersey inheritance tax remains unchanged and applies to transfers at death to beneficiaries other than a surviving spouse or lineal descendants and ascendants.
- The repeal of the New Jersey estate tax removes a complicating factor from the development of a comprehensive estate plan for New Jersey residents.
In 2016, then Governor Chris Christie signed into law certain changes to the New Jersey transfer tax system. These changes provided that on January 1, 2017 the New Jersey estate tax exemption increased from $675,000 to $2 million for estates of residents dying on or after January 1, 2017 but before January 1, 2018. Further, this new law repealed the estate tax in its entirety for those resident decedents dying on or after January 1, 2018. However, the New Jersey inheritance tax was not repealed.
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