NJ Estate Tax Repeal Development Announcement
There is quite a buzz going on in Trenton, NJ today as lawmakers finally look to determine their course of action regarding the estate tax repeal in light of the proposed gas tax hike. Ultimately, it was last week’s Hoboken train terminal event that put the pressure on the state’s transportation fund and a need to address shoring up its current deficit.
Here are the salient facts regarding the state’s death tax structure going into today’s discussions:
- The current NJ estate tax exemption is $675,000 as compared to the Federal exemption of $5.45M.
- If the estate tax repeal is approved today, the state exemption will increase to $2M effective January 1, 2017. It will then be completely repealed by January 1, 2018 and increase to the Federal limit of $5.45M.
- The inheritance tax, which actually hits more estates and drives more revenue for the state of New Jersey, will not change. Inheritance left to immediate blood relatives – the surviving spouse, parents, children and grandchildren – are entirely exempt. Anything outside of that will incur the inheritance tax.
What does this mean for NJ? Our state will no longer be the worst death tax structure in the country. Expect to see some new New York city transplant neighbors in the near future!
We encourage all individuals to review their estate plan with their attorneys and wealth advisors.
Stay tuned for further developments.