Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

New Jersey Estate Tax Eliminated in 2018

Posted on Mon Oct 10, 2016, on Estate Planning

From our “Ask a Question” Mailbag: New Jersey Estate Tax Eliminated

Most Recently Updated August 9, 2018.

“Is there an estate tax in New Jersey? I heard that there isn’t tax on estates anymore.”

New Jersey Estate Tax Eliminated

New Jersey Estate Tax Eliminated

New Jersey Democrats and Republicans arrived at a deal that resulted in the New Jersey Estate Tax being eliminated effective 2018. Though not everyone was happy, making deals is what gets legislation done, and an increase in such deals would be appreciated.

Republican Governor Chris Christie wanted to eliminate the New Jersey Estate Tax.  He saw the tax as a force pushing affluent retirees out of New Jersey. The Democrats wanted to fund highway repair by raising the New Jersey gas tax. Showing that political horse trading is not a dead art, the two sides negotiated.  

The Gas Tax Rises.

The gas tax rose 23 cents a gallon to 37.5 cents a gallon.  This increase transformed the New Jersey tax from the country’s second lowest tax to the seventh highest gasoline tax. The new tax funds an eight-year, $16 billion Transportation Trust Fund.  Hopefully, meeting goals will result in new and badly needed road, bridge, and rail projects.

Phasing Out The New Jersey Estate Tax.

In exchange for the highway funding, the Republicans received their goal of ending the New Jersey Estate Tax as well as a small, 3/8% reduction in the sales tax.  The Estate Tax exemption increased from $675,000 to $2,000,000 in 2017 and then elimination in 2018.  Noticeably absent in the negotiations, the New Jersey Inheritance Tax remained unchanged.

Updating your documents might be to your advantage. Clauses that once served a purpose might now actually do harm. Therefore, I suggest that you Contact our office for a free consultation.  We can determine if you would benefit from an update.

More Planning Questions?

Tax planning is only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.

In Conclusion: New Jersey Estate Tax Eliminated

I hope that this article was helpful in explaining (the elimination of the NJ estate tax. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

Wills, Trusts, Probate, and Estate Litigation, It’s All We Do!

Tags:

Estate Planning, Estate Planning Attorney, Estate Planning Lawyer, Estate Tax, New Jersey

Peter KlenkPeter Klenk

What Our clients are saying

Klenk Law Logo
Stars

Peter J. Gutekunst, CFP®

I've worked with and known Peter Klenk and his associates for years. They are highly professional, diligent and truly experts in their field. By focusing on just wills, trusts, and estates, Klenk law has experienced every angle of estate planning and applied that knowledge to help prepare our clients with thorough and comprehensive documents.

Klenk Law Logo
Stars

Ronald W.

Peter and his staff are very responsive and always willing to help my clients and in a cost efficient manner.

Klenk Law Logo
Stars

Nafeesha. B

When it came down to picking the right attorney to handle my affairs, I knew right away it was this firm. From speaking to their secretary to speaking to Peter I knew I was making the right decision. After only a few mins Peter knew right away what I was looking for and handled all my questions professionally and even gave me great feedback that put my mind at ease. All that without even giving a single penny! So of course I hired him! So far so good...

Klenk Law Logo
Stars

Kevin K.

I was referred to Peter after my divorce to put documents together to protect my assets. He suggested a number of documents that would help protect my children and their future. Also, he put together wills, power of attorney and living wills. I initially spoke with him on the phone, he took 30-40 minutes to understand my situation and explain the benefits of having such documents. After a week or two, I met with him in his office and signed the documents. Everything else was remote phone calls and emails. He re-explained these documents and what whom to share. I am in good hands.

Klenk Law Logo
Stars

Glenn P.

Peter Klenk ESQ is a thoughtful and capable attorney who we work with on estate planning issues. His firm recently provided us with new Wills, Power of Attorneys and our instructions regarding major health issues. These documents are important for estate and life planning. Peter and his team are masters in the complexities of Estate Law. We highly recommend Peter and his Associates to provide thoughtful advice and outstanding work on these complex issues of the law. Make sure your estate planning documents are up to date, and Peter can be relied on to do an excellent job. Well done Peter!

Let us put our expertise to work for you.

Free consultation within 24 hours.