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
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: George McGowan
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
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.