Each state has its own laws relating to estates and each state imposes different taxes. In New Jersey there is a transfer inheritance tax on transfers of property having a value of $500.00 or higher. The inheritance tax must be paid within eight months of the death of the decedent.
When a decedent transfers property to a spouse, a parent, a grandparent, a child, a stepchild or a grandchild there is no inheritance tax. Now a civil union partner is also exempt from paying inheritance tax if the property is transferred by a decedent who is his/her partner. The transfer inheritance tax is a state tax and as such, the tax law recognizes the rights of civil union partners as the same rights as those of married individuals.
The federal laws do not recognize civil union partnerships in the way New Jersey does and there may still be federal estate and/or gift tax consequences when property is transferred from one partner to another.
Getting Legal Help
Experienced Estate Planning Attorney Elga Goodman can help you create a plan which protects your assets, saves tax consequences, and protects loved ones. Call us today at 973-841-5111.
Posted in: Estate Planning