J. Jeffrey Press, P.A.
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estate and gift tax planning Archives

Will my heirs be subject to the New Jersey inheritance tax?

While New Jersey no longer has an estate tax, as of right now it is one of only a handful of states that still imposes an inheritance tax. This tax applies to any transfers of assets to certain (but not all) heirs once you pass away. And while inheritances worth $500 or less won't be taxed, other inheritances will be subjected to the legally complex inheritance tax.

Review your estate plan in light of federal estate tax changes

The Tax Cuts and Jobs Act passed in 2017 will take effect this year, and it means big changes for some New Jersey taxpayers. The jump in the federal estate and gift tax exemption to $11.8 million may be good news to those with a large estate. However, these individuals may want to review their estate plan in light of these tax law changes, so that they can ensure they are utilizing the new laws to their greatest advantage.

Inheritance tax still applies to some New Jersey heirs

New Jersey does not have an estate tax as of January 1, 2018. However, it is one of the remaining states to have an inheritance tax. Also known as a "beneficiary" task, the basis of this tax is on the person who receives an inheritance as well as the amount of the estate that person inherited. An inheritance tax applies to bequests worth at least $500. The tax amounts from 11 percent to 16 percent on inheritances.

When will the federal gift tax apply?

Many people in New Jersey have spent a lifetime accumulating a large nest egg. So, as they grow older, they may wish to start thinking about who they want to hand their assets down to. While some people will choose to execute a will or trust to accomplish this goal, others will choose to give gifts to loved ones while they are still alive. However, it is important to recognize when the federal gift tax will apply.

New federal estate tax law may affect estate plans

Sometimes, the law changes in a way that might affect a person's estate plan. For example, back in December of last year, Congress passed tax legislation in a way that warrants a review of one's estate plan. With this in mind, there are certain questions a person may want to ask a professional, so they can determine how the new federal estate tax law affects them.

Are gift taxes something you should look into?

For many New Jersey residents, gift taxes are something that is of interest as a tool in their estate planning wardrobe. Gifts to a loved one can be a good way to transfer some assets while a person is alive and reduce the total amount of the estate.

J. Jeffrey Press, P.A.
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Parsippany, NJ 07054

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