NJ Estate Tax

NJ Estate Tax for Estates over $675,000
     Recommendation for Tax Planning now if husband and wifes total assets including life insurance exceeds $675,000
    A New Jersey estate tax return must be filed if the decedents gross estate plus adjusted taxable gifts as determined in accordance with the provisions of the Internal Revenue Code in effect on December 31, 2001 exceeds $675,000. It must be filed within nine months of the decedents death (nine months plus 30 days if the Form 706 method is used). Additionally, a copy of any Federal estate tax return filed or required to be filed with the Federal government must be submitted within 30 days of the date it is filed with the Internal Revenue Service and a copy of any communication received from the Federal government must be submitted within 30 days of its receipt from the Internal Revenue Service.

The NJ Estate Tax is in addition to any NJ Inheritance Tax.

Who Must File

A New Jersey estate tax return must be filed if the decedents Gross Estate exceeds $675,000. There is substantial taxes that must be paid after the 2nd spouse dies on amounts over $675,000. You can hire an attorney to set up Trusts to try to reduce taxes due. We charge a minimum fee of $600 for each trust within a Will. A separate stand alone Trust has a minimum fee for $2,000.

Even if your net worth is well below the threshold where the federal estate tax becomes an issue, the New Jersey Estate Tax may still be a problem. The New Jersey Estate Tax affects any person or married couple with net worth over $675,000.There is no exemption for assets you leave to your children; those assets are fully taxed. There is also no exemption for the value of your home and life insurance, so it is easy to hit the $675,000 threshold very quickly. more details at http://www.njlaws.com/NJ-Estate-Tax.html