If I move to Florida, will the N.J. inheritance tax be due?

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Q. I’m a New Jersey resident but I plan to move to Florida. I would be a Florida resident but keep both houses. Would any beneficiaries of my estate — residing in New Jersey or otherwise — be subject to the New Jersey inheritance tax?
— Dad

A. Congratulations on your planned move.

It’s complicated.

Assuming you are successful in establishing Florida as your domicile, at the time of your death any real and tangible personal property you own located in New Jersey would be potentially subject to New Jersey inheritance tax, said Catherine Romania, an estate planning attorney with Witman Stadtmauer in Florham Park.

The residence of the beneficiary is not a factor in determining whether or not New Jersey inheritance tax is incurred, she said.

It’s all based on the relationship of the deceased to the beneficiaries.

She said intangible property, such as bank accounts, would not be taxable.

Assets left to Class A beneficiaries, which include your children — and charities — incur no tax, she said. Class A beneficiaries include a spouse, civil union or domestic partner, parents, grandparents, descendants, stepchildren (but not step-grandchildren), and mutually acknowledged children, she said.

“If the New Jersey real and tangible personal property is specifically bequeathed to Class A beneficiaries, or all of your assets are left to Class A beneficiaries, it is possible to entirely avoid the New Jersey inheritance tax,” she said.

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This story was originally published on Jan. 29, 2021.

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.