Estate Planning New Jersey Estate Tax
P.L. 2016, Ch. 57 (October 14, 2016) For New Jersey residents dying in calendar year 2017, the exemption amount from New Jersey Estate Tax which was previously $675,000, has been raised to $2 million per person. The estate tax will be completely eliminated for persons dying on or after January 1, 2018.
However, the New Jersey inheritance tax remains intact.
Kindly visit our Estate Planning and Estate & Gift Tax Planning websites for more information on this topic.
Reference: Margery J. Schneider, Tax Updates, Philadelphia Bar Association, Probate and Trust Law Section Newsletter (February 2017, No. 143)
The annual exclusion from gift tax allows an individual to give up to a certain amount tax free per person per year. In 2015, the maximum amount that can be gifted under the annual exclusion is $14,000 and this number is set by Congress. For example, this year you could give $14,000 to each of your family members or even everyone you know and incur no gift tax liability. You can repeat this pattern of giving calendar year after calendar year and incur zero gift tax liability as long as you give no more than the annual exclusion from gift tax. Any gifts exceeding the amount permitted to be made tax free under the annual exclusion would have to be reported on a federal gift tax return for the year in which the gift was made. Whether there would be any tax due on the gift depends on whether you have any available lifetime exemption.