Garden State Tax Measures

If you are planning on inheriting a large estate, you may not want to move to New Jersey.  Only $675,000 of an inherited estate is exempt from state taxes.  This is a relatively small exemption in a state where home values are among the highest in the country.  Contrastingly, the federal estate tax exemption is $5.34 million.

The state’s current estate tax may not be the only reason why the Garden State is the worst place in the country to die.  New Jersey also has an inheritance tax that is applicable to anyone other than a surviving spouse, child, parent, grandparent or charity.  The top tax rate is 16 percent and only the first $25,000 of inheritance is exempt. 

However, a bill introduced by Assemblyman Joseph Lagana would raise the estate tax exemption to $1.5 million.  It would also eliminate the inheritance tax for some relatives of the decedent.  While the proposed estate tax exemption is far below the federal threshold, it is a step in the right direction. 

See The Record: Death and Taxes, NorthJersey.com, Nov. 1, 2014.