What is New Jersey Inheritance Tax?
N.J. Inheritance Tax is a tax on the right to receive an inheritance or property at the time of someone’s death and is determined by the relationship of the beneficiary to the decedent. There is no tax imposed on a transfer to a spouse, child, adopted child, step-children, grandchildren, parent or grandparent. On a transfer to a brother or sister of the decedent, a wife or widow of a son of the decedent or husband of widower of a daughter of the decedent the first $25,000 is exempt. Any amount over that up to $1,100,000 is taxed at 11%. Any other beneficiary (other than those entirely except such as charities or educational institutions) will be taxed after the first $499 at the rate of $15% up to $700,000 and 16% on anything over that amount. [Depending on the size of the estate, Federal Estate Tax may also apply. It is suggested that you seek the guidance of an attorney or accountant to address those concerns.] Q: How soon must state inheritance taxes be paid? A: N.J. Inheritance Tax
