On January 1, 2017, the amount of property that can pass free of New Jersey State estate tax is set to rise to $2 million. On January 1, 2018, the New Jersey State estate tax will be eliminated altogether.
New Jersey passed a law this fall which significantly altered its estate tax for the apparent purpose of preventing the exodus of wealthy individuals. The law increases the New Jersey estate tax exemption, which was previously $675,000 per person, to $2,000,000 per person as of January 1, 2017. There will be no New Jersey estate tax for New Jersey residents dying after January 1, 2018.
It is important to note that New Jersey's inheritance tax has not been repealed by this law, so bequests to certain beneficiaries may still be subject to inheritance tax despite the changes to New Jersey's estate tax.