Good News for New Jersey Residents!
At least on the estate planning front, there is good news for New Jersey residents! The New Jersey estate tax exemption, currently the lowest in the nation at $675,000 per person, will increase to $2 million after January 1, 2017, and then will be eliminated beginning in 2018. The legislation (which was part of the Transportation Trust Fund bill) was signed by Governor Christie on October 14, 2016. Unfortunately, the legislation does not appear to have changed the New Jersey Inheritance Tax, which generally subject transfers to siblings at a rate of 11% and to many others at a rate of 15% (spouses, children and grandchildren generally are exempt from NJ inheritance tax). As a result of this change, many wills and revocable trusts may need to be updated.