28 Jan Will my kids have to pay the inheritance tax?

Q. Is it correct that children who inherit property from their parents in New Jersey won’t have to pay the inheritance tax?
— Planning

A. Yes, that is correct.

The New Jersey inheritance is based on the relationship between the deceased person and the beneficiary.

Your children are considered “Class A” beneficiaries, and they’re not subject to the inheritance tax. “Class A” also includes a spouse, parents, stepchildren and grandchildren.

Assets left to “Class C” beneficiaries, which include siblings and children-in-law, are taxed at rates between 11% and 16% after the first $25,000.

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This story was originally published in January 2025. 

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.