Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax and technical questions posed by producers.  Here’s the question of the day.

Question: My client’s mother recently died in New Jersey, leaving an estate of about $1 million to her daughter (my client).  What estate or inheritance tax issues need to be considered?

Answer: Under current federal estate tax rules, the decedent could leave up to $5 million to her daughter without worrying about federal estate taxes.

New Jersey has both an inheritance tax and an estate tax.  This website has an overview of both tax systems.

The inheritance tax does not generally apply to situations where property goes to spouse or kids.

The NJ estate tax applies to estates in excess of $675,000.  You can see the actual rates on page 10 of the NJ Estate Tax Return.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.