From Our “Ask a Question” Mailbag: No New Jersey Estate Tax on Life Insurance
Most Recently Updated August 9, 2018.
“My father at his death gave my brother, and I equal amounts. My brother got life insurance and was named TOD beneficiary of a bank account. I got everything under the Will including the house and remaining cash. The Will says the residue pays all taxes. Do we split the New Jersey Estate Tax on what my brother received outside the Will?”
No New Jersey Estate Tax on Life Insurance
The New Jersey Estate Tax was a transfer tax on all assets your loved one owned at death. Pennsylvania exempts life insurance, but New Jersey did not. However, lawmakers came to an agreement and eliminated estate tax altogether. This was done in an effort to keep money in the State of New Jersey.
More Planning Questions?
The elimination of the New Jersey estate tax and proper 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: No New Jersey Estate Tax on Life Insurance
I hope that this article was helpful in explaining tax free life insurance. 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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