It can be a struggle for the entire family when a loved one starts to…
In New Jersey, there may be inheritance and estate taxes assessed after person passes away and their assets are distributed. The tax amounts and rates depend upon the amount involved and the recipient’s relationship with the deceased person. Because estate taxes can be complex and there are various laws that apply, you should consult with our Fairfield New Jersey estate lawyers for legal advice.
What are some factors that affect estate taxes?
Whether there will be estate taxes and the amount assessed may depend upon several factors, such as:
- The date of the person’s death (i.e., was it before or after January 1, 2017 or after January 1, 2018?)
- The monetary value of the estate
- A person’s relationship to the decedent
- Whether a person is considered a retiree
Effective January 1, 2018, New Jersey repealed estate taxes. If a person died after this date, then state estate taxes may be avoided. There may still be federal estate taxes imposed, which is subject to an over $5 million exemption.
What other taxes may be imposed?
Despite the repeal of state estate taxes in New Jersey, there may still be inheritance taxes imposed. Depending upon your relationship to the decedent, there may be an inheritance tax ranging from 11-16% imposed. Any amounts under $500 are exempt from this taxation. The amount taxed beyond that sum depends upon the class in which you, or an entity, fall.
Why should you contact an attorney?
An estate lawyer can assist in helping to develop an estate plan that addresses tax consequences and minimizes the cost on your intended beneficiaries. We can also help administer an estate and address estate and inheritance issues that may arise.
Our Fairfield New Jersey estate lawyers at Faloni & Associates are experienced with New Jersey estate issues and can provide advice specific to your needs. Contact Faloni & Associates to schedule a consultation.