Watch out for Transfer Inheritance Tax when you do your estate planning
Most of the publicity in the news concerning changes to New Jersey’s “death tax” has focused on its raising of the estate tax thresholds. Now, if a person dies and has less than two million dollars in his or her estate, there will be no estate tax regardless of who is receiving that bounty. Not so for the Transfer Inheritance tax, which is based on the relationship of the...
NJ Tax Court again confirms – inheritance tax is based on what the Will said
Transfer Inheritance Tax must be paid in NJ when wealth is transferred at death to certain categories of recipients. There is no tax on transfer to charities or to “Class A” beneficiaries – these are spouses, lineal descendants and lineal ancestors as well as step children. However there is a tax of 11% on everything above $25,000 per person that passes to a sibling of the...