• Supporting Our Clients and the Community During the COVID-19 Pandemic.
    • Skip to primary navigation
    • Skip to main content
    • Skip to primary sidebar
    • Skip to footer
    • Home
    • Our Firm
      • About Our Firm
      • Attorney and Staff Profiles
      • Communities We Serve
        • Bergen County
        • Clifton
        • Essex County
        • Hudson County
        • Hunterdon County
        • Middlesex County
          • Edison
          • Woodbridge
        • Morris County
        • Passaic County
        • Somerset County
          • Hillsborough
          • Warren
        • Sussex County
          • Franklin
        • Union County
          • Plainfield
    • Services
      • Asset & Business Planning
      • Estate And Gift Tax Figures
      • Estate Planning Services
      • Incapacity Planning
      • IRA & Retirement Planning
      • Legacy Planning Services
      • Medicaid and Elder Law
      • SECURE Act
      • Special Needs Planning
      • Trust Administration
    • Seminars
    • Resources
      • Elder Law
        • Elder Law & Medicaid Definitions
        • Elder Law reports
        • Elder Law Resources
          • Plainfield Elder Law
      • Estate Planning
        • Estate Planning Checkup
        • Estate Planning Definitions
        • Incapacity Planning Definitions
        • Is Your Estate Plan Outdated?
        • New Jersey Estate Planning Resources
        • Top 10 Estate and Legacy Planning Techniques
      • Free Estate Planning Worksheet
      • Free Seminars
      • Frequently Asked Questions
        • Business Succession Planning
        • Estate Planning
        • Elder Law
        • Estate Planning for Women
        • Frequently Asked Questions for Families Without an Estate Plan
        • Legacy Wealth Planning
        • LGBTQ Estate Planning
        • Medicaid
        • Trust Administration & Probate
        • Wills and Trusts
      • Newsletters
      • Pre Consultation Form
      • Probate and Trust Administration
        • Bereavement Resources
        • How to Know if You Need Extra Help With Your Grieving
        • Loss of a Loved One
        • Probate Resources
          • Hillsborough Township Probate
          • Plainfield Probate
        • The Mourner’s Bill of Rights
        • Things You Need To Do When a Loved One Passes Away With a Trust
        • Things You Need To Do When a Loved One Passes Away With a Will
        • Trust Administration & Probate Definitions
      • Published Books
    • Reviews
      • Our Reviews
      • Review Us
    • Blog
    • Contact Us

    Augulis Law Firm

    New Jersey Estate Planning Information Center

    Connect with us today(908) 222-8803

    • Attend A Seminar
      • Attend A Webinar
    • Facebook
    • Twitter
    • Linkdin
    • Youtube
    • Instagram
    • Pinterest
    Committed to helping New Jersey families preserve and protect their wealth.
    Home » Estate Planning » New Jersey Estate & Inheritance Taxes Add To The Erosion

    New Jersey Estate & Inheritance Taxes Add To The Erosion

    February 14, 2011Estate Planning

    New Jersey is a beautiful state in its own right, from the farmlands to the beaches to the extraordinarily colorful change of seasons. Is also well situated in proximity to the a couple of the largest centers of commerce in the world, flanked in the north by the Big Apple of New York City and in the south by the City of Brotherly Love. There’s lots to like about living in the Garden State, but one of the things that’s not so appealing is the high rate of taxation that comes along with the territory.

    When it comes to estate planning the federal government is a ubiquitous nemesis from a tax perspective. No matter where you happen to reside in the United States that 35% federal death levy looms large, and it can can take some intricate planning to mitigate asset erosion. But when you live in the state of New Jersey your estate planning challenges are compounded by not just the state estate tax, but the potentiallyNew Jersey inheritance tax as well.

    The federal estate tax comes with a $5 million exemption and a 35% maximum rate as a result of the recently passed Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The New Jersey estate tax exemption is just $675,000 and the top rate comes in at 16%. Estate taxes are levied on the sum total of your taxable assets after you die simply because you did indeed pass away. The logic behind this is anybody’s guess, but that’s another story.

    As though a 35% federal estate tax and a 16% New Jersey estate tax were not enough, the Garden State also imposes an inheritance tax on each individual heir  who is not a class A beneficiary receiving inheritances from your heavily taxed estate. These levies can also reach as high as 16%.

    The good news is that we can revel in near exclusivity: Maryland is the only other state that opposes both an estate and an inheritance tax on its residents.

    • Author
    • Recent Posts
    Alan Augulis, Estate Planning Attorney
    Alan Augulis, Estate Planning Attorney
    Mr. Augulis founded his Warren, New Jersey law firm so that he could focus his practice in the areas of advanced estate planning and tax law. Mr. Augulis has invested considerable time and energy helping to educate others on the topic of estate planning and has become a sought-after speaker in the tax and estate planning arena because of his informative and entertaining seminars.
    Alan Augulis, Estate Planning Attorney
    Latest posts by Alan Augulis, Estate Planning Attorney (see all)
    • Effective Planning for Single Seniors - October 1, 2023
    • Your Guide to Navigating the Labyrinth of Trusts - September 28, 2023
    • Paving the Way For the Future: An Estate Planning Guide for Millennials - September 24, 2023

    About Alan Augulis, Estate Planning Attorney

    Mr. Augulis founded his Warren, New Jersey law firm so that he could focus his practice in the areas of advanced estate planning and tax law. Mr. Augulis has invested considerable time and energy helping to educate others on the topic of estate planning and has become a sought-after speaker in the tax and estate planning arena because of his informative and entertaining seminars.

    Primary Sidebar

    Augulis Law Firm

    Free Estate Planning Worksheet

    There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

    • This field is for validation purposes and should be left unchanged.

    Follow Us

    • Facebook
    • Twitter
    • Linkdin
    • Youtube
    • Instagram
    • Pinterest

    Testimonials

    Client Review
    August 4, 2020
        

    Very happy with work. Everything explained clearly and concisely and all my questions were answered completely. Process of putting together plan and review of documents was very organized and easy to understand.

    norm

    Blog Subscription

    Sign up to receive our latest blog updates!

    • This field is for validation purposes and should be left unchanged.

    Where we are

    Augulis Law Firm
    5 Mountain Blvd. Suite 5
    Warren Twp, NJ 07059
    Phone: (908) 222-8803
    Fax: (908) 222-8815

    See Larger Map Get Directions

    Office Hours

    Monday9:00 AM - 5:00 PM
    Tuesday9:00 AM - 5:00 PM
    Wednesday9:00 AM - 5:00 PM
    Thursday9:00 AM - 5:00 PM
    Friday9:00 AM - 5:00 PM

    Map

    map

    Footer

    • Advantages of Working With Our Firm
    • Disclaimer
    • Privacy Policy
    • Sitemap
    • Contact Us

    Connect with Us

    • Facebook
    • Twitter
    • Linkdin
    • Youtube
    • Instagram
    • Pinterest
    footer-logo

    Augulis Law Firm
    All Right Reseved.

    Attorney Advertisement

    © 2023 American Academy of Estate Planning Attorneys, Inc.