New Jersey Estate Tax Changes
P.L. 2016, c. 57 provides that the New Jersey Estate Tax exemption will increase from $675,000 to $2 million for the estates of resident decedents dying on or after January 1, 2017, but before January 1, 2018. For these estates, the New Jersey Estate Tax no longer conforms to the provisions of the federal Internal Revenue Code of 1986 in effect on December 31, 2001 and instead follows the current federal Internal Revenue Code for determining the value of the estate which will be subject to New Jersey Estate Tax.
New Jersey Estate Tax is not imposed on transfers of estates of resident decedents dying on or after January 1, 2018.
In addition to the Estate Tax, New Jersey imposes an Inheritance Tax on the estates of certain resident and nonresident decedents. P.L. 2016, c. 57 made no changes to the New Jersey Inheritance Tax.
In the upcoming weeks, the Inheritance and Estate Tax Branch will provide guidance regarding the filing of the New Jersey Estate Tax return and the issuance of waivers for the estate of a decedent dying on or after January 1, 2017, but before January 1, 2018.
General questions regarding the changes to the New Jersey Estate Tax can be directed to the New Jersey Inheritance and Estate Tax Branch at 609-292-5033. This Branch cannot answer any hypothetical questions regarding estate planning.