CT, NY AND NJ JOIN THE STATES WITH AN INCREASED ESTATE TAX EXEMPTION

♠ Posted by Marc J. Soss in Connecticut Estate Planning,Connecticut estate tax,New Jersey Estate Tax elimination,New Jersey Inheritance tax,New York estate tax

You can now add Connecticut, New York and New Jersey to the growing list of states trying to keep its retiring residents from fleeing to states with a lower or no state estate tax bill at death. Effective April 1, 2017, New York state increased their exclusion amount, the amount of property that could pass free of any New York state estate tax, from $1.00 million to $5.25 million. On January 1, 2019, the New York state exclusion amount will increase again and equal the federal exemption amount. Not to be left behind, in the fall of 2017, the states of Connecticut and New Jersey also made significant changes to their state estate tax exemptions. In 2018, the Connecticut estate tax exemption amount will rise from $2 million per person to $2.60 million and will match the federal exemption amount on January 1, 2020. In New Jersey, retroactive to January 1, 2017, the New Jersey estate tax exemption rose from $675,000 per person to $2.00 million. The New Jersey estate tax will be eliminated entirely on January 1, 2018. It is important to note that the New Jersey inheritance tax, a tax levied on inheritances passing to siblings, nieces, nephews and other unrelated individuals, is not impacted by this change in the law. As a result, bequests to certain beneficiaries may still be subject to inheritance tax.

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NEW JERSEY ELIMINATES ITS ESTATE TAX IN 2018, BUT KEEPS ITS INHERITANCE TAX

♠ Posted by Marc J. Soss in elder planning,Estate planning attorney,ESTATE TAX ELIMINATION,florida estate planning,florida probate attorney,florida probate lawyer,New Jersey Estate Tax elimination,New Jersey Inheritance tax

On October 14, 2016, Governor Chris Christie signed into law legislation which raises the New Jersey estate tax exemption to $2,000,000 in 2017 (up from $675,000) and eliminates it entirely in 2018. Until January 1, 2018, the New Jersey estate tax will continue to be applied based on a graduated rate table which begins at 4% for estates of $675,000 or more and increases to 16% for estates in excess of $10,100,000. While the New Jersey estate tax exemption is going away, the New Jersey inheritance tax will remain. The New Jersey inheritance tax only applies to transfers to other relatives and friends, and does not apply to transfers at death to parents, spouse, children and other descendants and charity. So ends New Jersey's reign as the state with the highest estate tax among those states which continue to impose an estate tax.

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