26 Sep Will my relatives owe inheritance taxes?
Q. I have questions about the New Jersey inheritance tax. Is there any exemption for children or grandchildren, and if there is, is it per person and must they be residents of New Jersey? My daughter and granddaughter live in New Jersey, but my son lives in Pennsylvania and his daughters live in Chicago and New York City.
— Planning ahead
A. The inheritance tax can be complicated, but for you, the situation is an easy one.
There is no New Jersey inheritance tax on bequests to Class A beneficiaries, said Gary Botwinick, an estate planning attorney and chair of the taxation/trusts and estates department at Einhorn Harris in Denville.
Class A beneficiaries include a spouse, child, grandchild, parent, grandparent or stepchild.
“With respect to any inheritances by your daughter, son or granddaughters, there will be no New Jersey inheritance tax,” Botwinick said. “This is true regardless of where your son, daughter or granddaughter reside.”
You didn’t say how much your estate is worth, but keep in mind there is a New Jersey estate tax that estates over $2 million are subject to in 2017.
But as of Jan. 1, 2018, the state’s estate tax will be completely repealed.
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This post was first published in September 2017.NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.