Estate Plan & Inheritance Tax: What It Is; How Calculated & Who Pays It?

An inheritance tax is a tax imposed by only a few States on the recipients of inherited assets. In contrast to an estate tax, an inheritance tax is paid by the recipient of a bequest rather than the estate of the deceased. The inheritance tax is not common in the U.S., ands only six (6) states have an inheritance tax as of 2022, to include New Jersey. This also depends on the State in which the deceased lived or owned property, as well as the value of the inheritance and the beneficiary’s relationship to the decedent. In New Jersey, immediate family (spouse, children, parents, grandparents, grandchildren) and charitable organizations are exempt. Siblings and sons/daughters-in-law of decedexempt up to $25,000. The tax rate ranges from 11% to 16%, depending on the size of inheritance and the familial relationship.We can help you with estate planning, probate or administration matters. Contact us at [email protected] or call us at 856-428-5577 to review your estate plan and or administration matter.

DiMedio Law is a New Jersey law firm whose practice includes estate planning and administration as well as many other services. Contact us at [email protected] or call us at 856-428-5577.

DISCLAIMER: This advisory is for general information purposes only. It does not constitute legal advice, and may not be used and relied upon as a substitute for legal advice regarding a specific legal issue or problem. Advice should be obtained from a qualified attorney licensed to practice in the jurisdiction where that advice is sought.