What taxes are associated with a death in New Jersey?
All tax issues should be discussed with an accountant or tax attorney. The following is offered as simple guide but not offered as tax advice.
Estate Tax: The New Jersey Estate Tax will be eliminated by January 1 2018. Presently the New Jersey Estate Exemption has increased from $675,000.00 to $2 million as of January 1 2017.
Although the New Jersey Estate Tax is being phased out, the New Jersey Inheritance Tax will remain.
Inheritance Tax: There is no tax for Class A family members such as a spouse, domestic partner, civil union partner, child of the marriage or legally adopted mutually acknowledged child, stepchild of decedent (not a step-grandchild or great step-grandchild), grandchild of decedent , grandparent of decedent.
There are no Class B beneficiaries.
Class C bequests to brother or sister of decedent, spouse or surviving spouse of a child of decedent, civil union partner or surviving civil union partner of a child of a decedent or friends and relatives such as siblings, nieces, nephews, and cousins are subject to the inheritance tax.
Class C : First $25,000 no tax is due
Next $1,075,000- 11%
Next $300,000- 13%
Next $300,000- 14%
Over $1,700,000- 16%
Class D beneficiaries are any person not listed in Call A or C.
Class D: First $700,000- 15%
Over $700,00- 16%
There is no tax for Class E beneficiaries such as charities and other exempt organizations as specifically permitted. (Qualified charities, religious institutions, educational and medical institutions, non-profit benevolent or scientific institutions and the State of NJ or any of its political subdivisions)
Retirement Exclusion: The annual retirement income exclusion on New Jersey income taxes from pension and retirement income will increase over four years to $100,000.00 if you are married filing jointly, $75,000.00 for individuals, and $50,000 if you are married and filing separately.
When can a will be probated?
The original will can be presented to the Surrogate Court ten days after a death. Check the website of the county in which the deceased resides for the information you need to bring with you.