January 1st Marks Beginning of Phase Out for New Jersey Estate Tax

The New Jersey estate tax was a hot topic this last year with New Jersey legislators primarily because of increased concerns about individuals approaching retirement and beyond who were leaving the state in order to avoid having a significant chunk of their estate paid out in taxes when they pass away.

Many of these individuals had fled to Pennsylvania or New York and others established happier residences in Florida in order to change their residency and avoid the mass of tax bills. Currently New Jersey taxes an estate’s value above $675,000 but that threshold will rise to $2 million in 2017 and then disappear in 2018 when it reverts back only to the federal estate tax level.

According to research from the New Jersey Society of CPAs, 75% of their clients who responded to a survey said that leaving the state of New Jersey was certainly on the table when it came to retirement and estate planning.

Many individuals viewed this as an unfavorable reason to stay in the state of New Jersey to begin with, thus driving many people outside of the state or looking for alternative opportunities. If you’d like to discuss more of your estate planning options, consult with an experienced attorney in NJ today.