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Question: My mother passed away. I am the sole beneficiary of her estate, which is worth approximately 1.3 million dollars. Am I subject to a New Jersey estate tax?
Question: My mother passed away. I am the sole beneficiary of her estate, which is worth approximately 1.3 million dollars. Am I subject to a New Jersey estate tax?
Estates in excess of $675,000 are subject to the New Jersey estate tax. When a child inherits assets in excess of $675,000 from a parent, a New Jersey estate tax applies. New Jersey has the notorious reputation of having the highest State estate tax in the country. By comparison, a Federal estate tax does not apply in 2013 to estates that are less than 5.25 million dollars.
The property that is included in the determination of whether an estate is subject to a New Jersey estate tax includes real estate, bank accounts, brokerage accounts, life insurance policies, annuities, bonds, stocks and just about anything owned by the decedent regardless of where it is located. The tax applies to assets owned by the decedent individually or jointly with another person. The estate tax rate can be as low as 4 percent or as high as 16 percent, depending on the value of the estate. Some estate expenses, such as the funeral bill, executor commissions and attorney’s fees, can be taken as deductions in the estate tax return thereby reducing the tax owed.
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If you are an executor of an estate subject to the New Jersey estate tax, you should speak with an estate administration attorney who regularly deals with preparation of estate tax returns and can provide you with expert advice and guidance.
Nicholas Giuditta is a trusts and estates attorney in Westfield. He prepares estate plans for high net worth individuals and regularly represents executors and administrators of estates. Find out how your family can benefit by contacting Mr. Giuditta at 908-232-0099 or visit his website at www.giudittalaw.com.
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The questions and answers by Nicholas A. Giuditta, III, of the Law Office of Nicholas A. Giuditta, III, provided herein are for general information purposes only. The information does not, nor is it intended to, constitute legal advice and is not provided in the course of an attorney-client relationship. Online readers should not act upon this information without discussing the particular facts of their matter with an attorney.
