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
Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators
NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]
Author: Scarinci Hollenbeck, LLC
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
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.