A SmartMoney magazine article by Bill Bischoff recently reviewed all 50 states’ tax laws and outlined estate tax and inheritance tax rates. He calculated effective estate and inheritance taxes and concluded that our fair state, New Jersey, was the worst place to die if you expect your heirs to receive the majority of your money and property. Granted, the first $675,000 of your estate is exempt from this tax. But, with home prices above $675,000 in some parts of the state, it’s easier than you might first think to have an estate that’s larger than that.
His calculations said that when all the taxes are combined it means that heirs in New Jersey lose 54.1% of the decedent’s estate to taxes!! I was floored when I thought that more than HALF of someone’s money goes to the state. No wonder retirees are moving out of NJ as soon as possible!
Copyright, You Don’t Know Jersey, LLC (2010-2024)