New Jersey State Estate Tax May be Eliminated

New Jersey lawmakers delayed making a decision on the gas tax hike that has raised concerns around the state. The state’s gas tax may be raised as high as 23 cents per gallon. In a recent compromise Chris Christie and Democrats reached a compromise that might also put New Jersey’s estate tax on the chopping block.

The depleted state transportation fund would benefit from the new plan. The New Jersey sales tax will be decreased be three-eighths of a percent and tax credits for veterans and the working poor will also disappear over time, but the state estate tax is also scheduled to be phased out. More than $1.4 billion will be lost annually by this change, if accepted.

This is good news for New Jersey residents who have done or intend to do their estate planning, however. Some critics of the estate tax at the state level have stated that the tax makes New Jersey a less desirable place to live and retire. Many individuals have worked with estate planning lawyers in order to minimize the impact of the state estate tax in the past.

The bill on the table is expected to have no income tax on any senior citizen income, another important aspect for planning. This includes pensions, retirement accounts, and IRAs, among others.

Are you ready to start the estate planning process or speak with a lawyer about how those changes might influence your long-term estate plan? Reach out to an experienced lawyer as soon as possible. A New Jersey estate planning attorney can help you walk through scenarios.