NJ Estate Taxes Imposed on Estates Over $675,000
A New Jersey estate tax return is required when the decedent's gross
estate plus adjusted taxable gifts exceeds $675,000. The New Jersey estate
tax return must be filed within nine months of the decedent's death
or nine months plus 30 days if the Form 706 is filed. Federal estate tax
returns are required only for estates that are worth more than $5.34 million
as of 2014. The value of a New Jersey estate is calculated adding up the
total assets owned at death including:
- Real estate located in New Jersey
- Bank accounts and certificates of deposit
- Automobiles and other personal property
- Retirement accounts
- Investments and securities
- Proceeds from life insurance policies
- Small business interests (LLCs, sole proprietorship, small corporation)
For New Jersey estate tax purposes, it doesn't matter if your assets
pass through probate or through a living trust upon your death. Real estate
held in a revocable living trust, a retirement account with a beneficiary,
a jointly held bank account – they all get counted.
Property that is left behind to a spouse or a civil union partner are exempt
from the New Jersey estate tax, regardless of the amount. However, this
is different from federal law, which does not treat same-sex couples,
whether or not they are legally married under state law or civil union
partners, the same as married couples.
The greatest deduction for most people is the marital deduction, which
allows you to subtract any amount left to a spouse. If you leave all of
your property to your spouse, you won't own any tax. Other valuable
deductions include funeral costs, attorney fees, and outstanding income
tax bills among others. If the deductions can reduce the total value of
your estate below $675,000, then the executor won't have to cut a
check for state estate tax.
Simplified Forms for Estates
There are two types of estate tax returns in New Jersey. The simplified
form for estates that don't also have to file a federal estate tax
return and a regular estate tax return for larger estates. The simpler
form is due within nine months of the decedent's death, whereas the
regular form is due within nine months and 30 days after the death. Any
tax that is due must be paid when the return is due and interest accrues
at a rate of 10% per annum (each year) until it is paid.
Federal and estate tax returns are complicated and an executor will need
to speak with an attorney to prepare them correctly. Just a few reasons
why I am qualified to help you:
I have over 30 years of experience in
estate planning and
I was selected for inclusion in New Jersey's
- I am BV Distinguished® by Martindale-Hubbell®.
- I offer free consultations to all prospective clients.
As a seasoned
Haddon Heights estate planning lawyer, I can answer all of your questions and assist you with the process of
preparing state and federal estate tax returns. Contact me at
Harris Law Offices to arrange a free consultation at (856) 681-0429.