12 Jul What is the tax on inheritances for seniors?

Q. What is the tax on inheritances for seniors?

— Unsure

A. We answered this question recently, but it’s good to go over again.

It’s not about age — whether you’re a senior or not — but your relationship to the person who has left you the inheritance, the type of property we’re talking about and where the property is located.

New Jersey does not tax real or tangible personal property located outside the state of New Jersey that was owned by the decedent, Catherine Romania, an estate planning attorney with Witman Stadtmauer in Florham Park.

She also said that transfers at death or gifts made within three years of death to individuals who are Class A beneficiaries — namely a spouse, civil union or domestic partner, parent, grandparent, descendant, stepchild or mutually acknowledged child — and to charities will not incur an inheritance tax.

“Anyone else may incur a tax if the value of the assets received equal or exceed $500 unless it is an asset specifically exempt from the tax, such as life insurance paid to a named beneficiary,” she said. “Class C beneficiaries — consisting of siblings, spouse or surviving spouse or civil union partner or surviving civil union partner of a child of decedent — may receive up to $25,000 of assets before tax is assessed.”

The rate of tax, if one is due, depends on the relationship between the decedent and the recipient of the property and the value of the property, Romania said, adding that the tax amount ranges between 11% to 16% of the amount of the transfer.

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This story was originally published in July 2026. 

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