Inheritance taxes

New Jersey’s tax landscape for estates is often confused because there are two separate taxes: the **Estate Tax** and the **Inheritance Tax**. 1. **Estate Tax:** You are correct that this was repealed for deaths occurring on or after January 1, 2018. There is no NJ tax based simply on the total value of the assets. 2. **Inheritance Tax:** This still exists and depends entirely on the **relationship** of the beneficiary to the deceased. * **Class A Beneficiaries:** (Spouse, civil union partner, parents, grandparents, children, or grandchildren). They pay **$0** inheritance tax. * **Class C Beneficiaries:** (Siblings, or spouses of a child). The first $25,000 is exempt; amounts above that are taxed at **11% to 16%**. * **Class D Beneficiaries:** (Nieces, nephews, cousins, friends). Amounts up to $700,000 are taxed at **15%**; amounts over that at **16%**. * **Class E Beneficiaries:** (Charities). They pay **$0**. If all beneficiaries are Class A (e.g., children), no set-aside is needed for NJ inheritance tax. If there are Class C or D beneficiaries, you must calculate the tax based on their specific share before final disbursement. Always ensure a "tax waiver" is obtained if required for property transfers.