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Expenses that May Be Deducted in Estate Tax Filings in New Jersey

New Jersey is one of two states in the country that collects both inheritance and estate taxes at the state level. The New Jersey state estate tax laws are very similar to the federal estate tax statutes, and provide filers with the same deduction available on federal returns. Here are the expenses that may be used to minimize state estate tax liability in New Jersey:

  • Most expenses realted to a funeral or burial, including all costs of a funeral home, mortuary services, the costs of a headstone and any engraving, any meals or food/beverages provided at a funeral or memorial service, flowers, thank you notes and any fees or honorariums paid to an officiants, organ players, etc.
  • All legal fees tied to administration of the estate, including filing fees, notices, appraisals and title transfer fees
  • All accounting fees incurred to prepare the estate tax returns
  • Any commissions or fees paid to an executor or administrator
  • The cost of any bond required to be filed by an executor or administrator
  • Any outstanding obligations of the decedent as of the date of death, including credit card debt, unpaid medical bills and other debts
  • Unpaid income tax obligations
  • All costs associated with the sale of real property, including real estate commissions, title fees and closing costs

Contact Our Office

At the law offices of Gary F. Woodend, MBA, JD, we have protected the rights of hundreds of New Jersey residents in probate and estate matters. We have the knowledge, skill and experience to handle complex, multimillion dollar estates. To schedule a confidential consultation, call us at 609-654-5489 (toll-free at 888-336-8417) or contact our office online.

The New Jersey Estate Tax Exemption Set to Increase

Close up of estate tax return

At long last, New Jersey is finally moving into the 21st century with regard to death taxes! This has been a long time coming.

The New Jersey Estate Tax exemption will increase from $675,000 to $2 million for the estates of resident residents dying on or after January 1, 2017, but before January 1, 2018.

I have not yet seen anything yet regarding the rates for an estate greater in value than $2,000,000, but I assume the rates will be the same as they are now for an estate of that size, or a little bit higher.

There have been no changes regarding the New Jersey Inheritance Tax. Meaning, beneficiaries who are not direct, lineal descendants will pay 11% or 15% depending on their degree of kinship.

If you have any questions, or need help probating the estate or filing estate or inheritance tax returns, give us a call at (609) 654-5489. That’s what we do for a living.