In 2016, New Jersey legislators agreed to eliminate their state’s estate tax in a bipartisan effort directed at strengthening New Jersey’s Transportation Trust Fund. The estate tax was slated to be totally repealed as of January 1, 2018. This legislation will reduce the need for previously affected New Jersey residents to engage in complex estate planning since they will no longer be forced to address estate planning issues at the previous $675,000 state threshold. Residents may still want to meet with their estate planning attorney to address potential consequences with the inheritance tax, which was not abrogated by the recent legislation, the possible need to update their estate plan, and to address any insurance policies previously purchased to help subsidize or cover taxes owed by the estate under the prior law.
See Blair Talty, New Jersey Estate Tax and Exemption Update, Wilmington Trust, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
