- Of Counsel
On October 14, 2016, Governor Chris Christie signed legislation raising the gas tax by 23 cents a gallon. As a part of that same legislation, the New Jersey estate tax will be phased out over the next fifteen months.
Under current law, and through the end of calendar year 2016, the threshold for the application of the New Jersey estate tax is $675,000. This means that if an individual dies in 2016 with a gross estate in excess of $675,000, his or her entire estate is subject to the New Jersey estate tax.
On January 1, 2017, the $675,000 New Jersey estate tax threshold will be replaced with an exclusion in the amount of $2,000,000 for estates of individuals dying during calendar year 2017. Estates with a gross value of $2,000,000 or less will not be subject to the New Jersey estate tax in 2017. There is a graduated estate tax of 8-16 percent on estates over $2,000,000. The New Jersey estate tax is eliminated for individuals dying on or after January 1, 2018.
The New Jersey inheritance tax remains intact. The inheritance tax generally applies to individuals who are not a spouse, lineal descendant or ascendant of the deceased person, and applies at rates ranging from 11-16 percent depending upon the degree of relationship to the deceased individual.
For more information, contact Valerie L. Howe, Esq., Director, Mason, Griffin & Pierson, P.C.
Paul M. Bishop, Esq. joins Mason, Griffin & Pierson PC as an Of Counsel member of the firm. Paul will be part of the firm's litigation practice group. Paul comes to MG&P with over 15 years of litigation experience having worked the past 10 years at Brach Eichler.
Paul is admitted in the State of New Jersey, the State of New York and the District Court of New Jersey.
Karlee M. Martin, Esq. joins Mason, Griffin & Pierson PC as an Associate with the firm. Karlee comes to MG&P with experience in the areas of insurance, financial services, real estate, mortgage lending, consumer finance, bankruptcy, and landlord tenant matters. Karlee is admitted to practice law in the State of New Jersey, The Commonwealth of Pennsylvania, and the United States District Court for the District of New Jersey.