How New Jersey inheritance tax actually works
New Jersey taxes transfers based on the relationship between the decedent and the beneficiary. Class A (spouse, child, grandchild, parent, stepchild) pays nothing. Class C (siblings, son/daughter-in-law) pays 11–16% above a $25,000 exemption. Class D (everyone else — nieces, nephews, friends, partners not in a civil union) pays 15–16% from the first dollar.
The tax applies to anything that passes at death, including life insurance paid to the estate, joint accounts, and POD/TOD designations. Strategy matters: a $500,000 bequest to a niece costs $80,000 in NJ inheritance tax that a $500,000 bequest to a child does not.
Probate in New Jersey
New Jersey's county surrogate system is unusually fast and cheap compared to most states. For an uncontested will, the executor can be qualified within 10 days of death. This is one reason revocable living trusts in NJ are sold on privacy and incapacity planning grounds, not probate avoidance — the probate avoidance argument that works in Florida or California is weaker here.
What we typically build for NJ families
A core NJ estate plan is a pour-over will, revocable living trust, durable financial power of attorney, advance directive (combined health-care proxy and living will), and HIPAA authorization. For higher-net-worth NJ families we layer on ILITs, SLATs, and dynasty trusts sited in friendlier jurisdictions to escape NJ's income tax on accumulated trust income.