Many families believe they don’t have to worry about estate taxes because they don’t believe they owe that much. Unfortunately, individuals may not realize that if their estate totals more than $675,000 the executor will be writing a check to the state of New Jersey.
Many clients feel as though they don’t have any money, but think carefully. Even a modest home in North Jersey could cost as much as $450,000. Add in life insurance, investments, retirement plans and savings accounts and it’s not that hard to hit the estate tax threshold. The estate tax in new Jersey has been in the spotlight recently as a bargaining chip in the political argument about using a gasoline tax to pay for bridge and road repairs.
In fact, Republicans in Trenton voted to accept a higher gas-tax in exchange for reducing or eliminating the estate tax. Opponents of that idea however, allege that only 4000 New Jersey individuals pay estate taxes at the state level each year and the state budget is already crippled and unable to function without the money that those taxes bring in. One of the most important things you can do to protect yourself is to set up a meeting with a New Jersey estate planning attorney as soon as possible to protect your interests going forward. Negotiating the estate tax and taking various planning options can help you minimize your obligations.