We all know that the NJ gas tax increased $.23 per gallon on November 1, 2016. The law also may impact future estate taxes.
Here is how the estate tax is supposed to change:
Current Estate Tax – Estates over $675,000 are subject to estate taxes in New Jersey.
2017 Estate Tax – Estates over $2,000,000 are subject to estate taxes.
2018 Estate Tax – There shall be no estate taxes assessed against any estate in New Jersey.
NOTE: As with many things, this is subject to changes by the state government and are not guaranteed.
What does this mean when I think about future plans?
While the Estate Tax is being eliminated, the State’s Inheritance Tax will remain in effect. This tax does not impact spouses (marriage or civil union) but it is charged against others left in your estate plans.
You should carefully review what you own (house, other property, insurance policies, pension plans, etc.). If you want to leave a legacy with The College of New Jersey, you may want to make your gift some specific funds that will lessen the inheritance tax.
Certain funds (such as insurance policies) are not considered part of an estate (although may be subject to inheritance taxes). Some assets can also avoid probate by naming a beneficiary as POD (payable on death).
As always, consult a professional advisor and the office of Planned Giving remains available to provide options.