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