Inheritance Tax Attorneys in Cherry Hill, NJ
New Jersey and Pennsylvania are two of only six states in the U.S. to collect an inheritance tax. When imposing this tax, the government considers the value of the estate and the relationship of the person who died to the person who inherited their estate.
However, each of these states has different statutes governing when and how inheritance tax is levied. At Rice & Quattrone, PC, our estate administration attorneys are well-versed in the statutes that affect your legacy and your loved ones.
New Jersey Inheritance Taxes
In New Jersey, the value of the estate must equal or exceed $500 for this tax to apply, but not all assets of the estate are subject to inheritance tax. Gifts made prior to death may also be included in the taxable estate. Depending on the governing document (usually the Will), the tax may be payable either from the estate before it is distributed, or by the estate’s beneficiaries.
The spouse and children of the deceased, as well as charitable beneficiaries, are completely exempt from paying inheritance tax in New Jersey (but only the spouse is exempt in Pennsylvania). Other beneficiaries pay a tax that varies depending on their relationship with the decedent. The tax rate also varies based on the estate’s value.
Pennsylvania Inheritance Taxes
Under Pennsylvania law, the inheritance tax applies regardless of the estate’s value and also applies to gifts made prior to death. As in New Jersey, not all estate assets are subject to the inheritance tax.
Although the spouse and charitable beneficiaries are exempt from paying inheritance tax, children of the decedent are not. Remaining beneficiaries, including children, parents, and siblings, pay a graduated tax rate on the inheritance.
Begin Developing Your Estate Tax Strategy Today
Our attorneys have more than 30 years of experience creating estate plans. We draft documents personally, optimizing every detail of your estate tax plan to suit your unique situation. We are proud to offer exceptional representation to clients throughout New Jersey and the greater Philadelphia metro area.
We will use our knowledge and experience to help your estate’s beneficiaries pay as little New Jersey or Pennsylvania inheritance tax as possible. To get started, contact us online or call us in Linwood at 609-398-3447 or Cherry Hill at 856-673-0048.