Estate & Inheritance Tax Planning

Navigate NJ inheritance tax and federal estate planning with a licensed CPA.

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Quick Answer

NJ abolished its estate tax effective January 1, 2018, but the NJ inheritance tax remains in full effect - assets passing to Class C (siblings, in-laws) and Class D (friends, cousins) beneficiaries are taxed at rates from 11% to 16%.
Class A beneficiaries (spouses, children, grandchildren, parents) are fully exempt from NJ inheritance tax regardless of amount - Class E beneficiaries (qualifying charities) are also exempt.
NJ Form IT-R (inheritance tax return) must be filed within 8 months of the date of death - interest accrues at 10% per year on unpaid NJ inheritance tax beginning 8 months after the date of death (the filing/payment deadline), per N.J.S.A. 54:35-10 and N.J.A.C. 18:26-9.12.
The federal estate and gift tax exemption is $13.99 million per individual for 2025 (indexed for inflation). The TCJA had originally scheduled a reversion to approximately $7 million in 2026, but the OBBBA (signed July 4, 2025) eliminated this sunset and raised the exemption to $15 million per individual ($30 million for couples) starting January 1, 2026, indexed for inflation going forward.
NJ tax waivers (Form L-8 for real property, Form L-9 for bank accounts) are required to transfer most assets from a decedent - banks and title companies will not release funds without them.

Estate and inheritance tax planning involves analyzing how assets will transfer at death and structuring your estate to minimize transfer taxes for your heirs. Monaco CPA provides NJ inheritance tax return preparation, federal estate tax analysis, and coordination with estate planning attorneys for NJ families and business owners.

New Jersey abolished its estate tax in 2018, but the NJ inheritance tax is still very much alive and can hit families hard when assets pass to siblings, in-laws, or non-family beneficiaries.

At Monaco CPA, I provide inheritance tax return preparation (Form IT-R), federal estate tax analysis, and coordination with estate attorneys to ensure the tax picture is handled correctly alongside the legal planning.

Whether you need the NJ inheritance tax return prepared after a loss, or are planning ahead to protect your heirs, I can help you understand your exposure and your options.

What's Included

NJ Form IT-R (inheritance tax return) preparation

Federal estate tax analysis and Form 706 support

Beneficiary classification analysis (Class A/C/D)

Asset inventory and valuation guidance

NJ inheritance tax waiver coordination

Federal gift tax planning (Form 709)

Coordination with estate planning attorneys

OBBBA permanent exemption planning ($15M TY2026+, indexed)

Trust income tax return preparation (Form 1041)

Entity succession planning for family businesses

How It Works

Review Estate Situation

I review the decedent's assets, beneficiaries, and estate documents to identify all applicable taxes.

Prepare Returns

I prepare NJ Form IT-R, federal Form 706 if applicable, and any required trust income tax returns.

Coordinate Waivers

I assist with the NJ tax waiver process to release holds on financial accounts and real estate transfers.

Plan Ahead

I analyze beneficiary designations, gifting strategies, and entity structures to reduce future transfer tax exposure.

Frequently Asked Questions

Did NJ repeal its estate tax?

Yes. New Jersey abolished its estate tax effective January 1, 2018. However, the NJ inheritance tax was not repealed and remains in full effect. Assets passing to Class C beneficiaries (siblings, in-laws) and Class D beneficiaries (friends, cousins) are subject to NJ inheritance tax.

Who is exempt from NJ inheritance tax?

Class A beneficiaries (spouses, children, grandchildren, and parents) are completely exempt from NJ inheritance tax, regardless of the amount inherited. Class E beneficiaries (qualifying charities) are also exempt.

When must the NJ inheritance tax return be filed?

NJ Form IT-R must be filed within 8 months of the decedent's date of death. Interest at 10% per year accrues on unpaid taxes beginning 8 months after the date of death (the filing/payment deadline). Tax waivers are required to transfer most financial assets and real estate.

What is the 2025 federal estate tax exemption?

The federal estate and gift tax exemption is $13.99 million per individual for 2025. The OBBBA (signed July 4, 2025) eliminated the TCJA sunset and permanently raised the exemption to $15 million per individual ($30 million for couples) starting January 1, 2026, indexed for inflation going forward.

Does Monaco CPA prepare trust tax returns?

Yes. I prepare Form 1041 fiduciary income tax returns for trusts and estates, including complex trusts with investment income, capital gains, and K-1 issuance to beneficiaries.

"I've been working with Greg Monaco, CPA for a few years now, and he's honestly saved me real money with both personal tax help and crypto tax stuff. He answers quickly, breaks things down in a way that's easy to understand, and you can tell he actually cares about doing right by you."

Dylan P.

These testimonials reflect individual client experiences and do not guarantee similar outcomes. Results vary based on each client's specific facts and circumstances. No client was compensated for providing a review. Tax savings and outcomes depend on individual tax situations and are not typical of all client experiences.

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