Court Bonds

The New Jersey Estate & Inheritance Taxes

08/13/2019

For anyone who dies after January 1, 2018, their estates will not be subject to a New Jersey state estate tax. New Jersey residents, however, are still subject to the federal estate tax as well as the New Jersey inheritance tax. For deaths in 2017, estates up to $2,000,000 were exempt from the estate tax, and from 2001-17, estates up to only $675,000 were exempt.

As for the New Jersey inheritance tax, the amount received via inheritance as well as the relationship to the deceased of the beneficiary or transferee determines inheritance rate.

Class A beneficiaries are exempt from the inheritance tax. This class includes: the deceased’s spouse, domestic partner, or civil union partner; parent or grandparent; children, whether biological, adopted, or mutually acknowledged; stepchildren, though not great-stepchildren or stepgrandchildren; and grandchildren or other lineal descendants of children.

Class B no longer exists, but Class C beneficiaries are not exempt from the inheritance tax. This class includes: the deceased’s brothers or sisters, spouses or civil union partners of the deceased person’s child; and surviving spouses or civil union partners of the deceased person’s child. The first $25,000 of this class’ inheritance is not taxed, while the next $1,075,000 is taxed at 11%; the next $300,000 after that is taxed at 13%; the next $300,000 after that is taxed at 14%; and any amount over $1,700,000 is taxed at 16%.

Class D includes everyone else not included in a prior class. This class has no specific exemption amount and is taxed as follows: the first $700,000 of an estate is taxed at 15% and any amount past $700,000 is taxed at 16%.

Class E also has no inheritance tax and includes the State of New Jersey or any political subdivision of the State of New Jersey as well as other groups such as churches, hospitals, and public libraries.

Estate executors and administrators will likely have to obtain an estate surety bond in order to protect the interests of the estate and its beneficiaries in accordance with applicable New Jersey state law.

Where can you purchase instant estate surety bonds?

Colonial Surety offers the direct and digital way to obtain estate bonds, also known as probate bondspersonal representative bondsadministrator bonds, and executor bonds. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your bond instantly. The steps are easy — get a quote online, fill out your information, satisfy underwriting requirements, and enter your payment method. Print or e-file your bond from your office. It’s that simple!