Certified Financial Fiduciary Robert M. Ryerson has spent more than two decades helping clients manage their assets and retirement plans through his work with New Century Planning in Freehold, New Jersey. Robert M. Ryerson is knowledgeable in all aspects of federal and state (New Jersey) tax regulations, including the parameters of the inheritance tax.
While the estate tax has been eliminated in New Jersey, the state still levies an inheritance tax for relatives not included in the Class A category (spouses, children, and grandchildren). The tax goes into effect for in-laws and siblings if the value of the inherited assets exceeds $25,000.
Other relatives and friends must pay a 15-percent tax on assets worth $501 to $700,000 and a 16-percent tax on any larger inheritance. No tax is imposed on any class of beneficiary if the value of assets is less than $500.
An estate planning advisor can help New Jersey residents consider gifting strategies that lower the tax burden for their relatives. Advisors can also suggest alternative routes such as legal adoption or irrevocable trusts to shield other beneficiaries from tax obligations.
