New Jersey also imposes an Inheritance Tax on transfers to extended family and unrelated persons. The tax rate ranges from 11% to 16% depending on the amount of transfer and the relationship between the decedent and the recipient.
Federal and state law permits techniques designed to reduce or eliminate estate and inheritance taxes. The tools available include Testamentary Trusts created in your Last Will and Testament, Properly Drafted Business Agreements, Inter Vivos Life Insurance Trusts and Charitable Trusts, correct life insurance and retirement account beneficiary designations, gifts during life and other legal techniques designed to reduce or eliminate the tax bite.
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Don't make the mistake of ignoring death taxes. We still have substantial federal and New Jersey taxes. Proper planning may help you pass more of your property on to your heirs.