Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
New Jersey Considers Estate Tax Reform
Author: Scarinci Hollenbeck, LLC
Date: September 5, 2014
Key Contacts
Back
As numerous other states make similar moves, New Jersey is considering estate tax reform.
A bill has been introduced to the New Jersey state legislature that would repeal the inheritance tax and raise the size of the estate tax exemption to the federal level, according to The Real Deal. Currently, New Jersey is one of just two states left in the U.S. to tax both estates and inheritance.
This means that estates that are larger than the state exemption – $675,000 in New Jersey – are first taxed under the estate tax, according to NorthJersey.com. Then, the remaining money can be taxed a second time when it is inherited, up to a maximum rate of 16 percent. Spouses, children and parents are exempt from the inheritance tax, but siblings, cousins, other relatives and friends are not.
The threshold for estate taxes at the federal level is $5.34 million – considerably larger than the New Jersey exemption. The federal exemption is also indexed for inflation, meaning that it increases to stay in line with the value of the dollar.
Proponents for a higher exemption argue that many middle class families accumulate an estate of $1 to $2 million in the form of real estate equity, and that we should not necessarily penalize them for accruing this modest level of wealth over a lifetime.
On the other hand, Department of Treasury data cited by NorthJersey.com found that almost $760 million of the total state budget of $32.5 billion will come from estate and inheritance taxes this year. Those who oppose raising the exemption to the federal level argue that doing so would result in a loss of tax revenues that would have to be paid for another way.
To find out more about how these estate tax reforms will affect you, feel free to speak with a tax attorney at ScarinciHollenbeck.com. If you would like to read more about estate tax reform than take a look at some of our older posts on this topic:
- Will Stepping-Up The Basis of Assets Become More Important Than Avoiding Estate Tax?
- House Republicans Talk About Repealing the Estate Tax
- New York’s Estate Tax Cliff
- New York Doubles Estate Tax Exemption
- Reduce, Eliminate Your Estate Tax Bill
- IRS Extends Estate Tax Break
- Taxpayers Can Expect Bigger Estate Tax Credits in 2014
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.