Article by Thomas D. Begley Jr.<\/p>\n
Prior to July 1, 2002, the New Jersey estate tax was a \u201csponge\u201d or \u201cpick up\u201d tax that was essentially based on the federal estate tax.\u00a0 On July 1, 2002, the tax was decoupled from the federal estate tax.\u00a0 The New Jersey estate tax is now imposed upon the transfer of an estate that would have been subject to federal estate tax under the Internal Revenue Code in effect on December 31, 2001.\u00a0 Essentially, this means that if a decedent\u2019s estate exceeds $675,000, a New Jersey estate tax return must be filed within nine months of the date of death and any tax due must be paid within nine months.\u00a0 The tax rate is graduated and tops out at 16%.\u00a0 The tax can be significant.\u00a0 For example, on an estate of $2,040,000, the tax is $106,800.<\/p>\n
There are three main options to avoid the New Jersey estate (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Article by Thomas D. Begley Jr. Prior to July 1, 2002, the New Jersey estate tax was a \u201csponge\u201d or \u201cpick up\u201d tax that was essentially based on the federal estate tax.\u00a0 On July 1, 2002, the tax was decoupled…<\/span><\/p>\n