New Jersey Estate Planning Laws

Estate & Inheritance Tax

New Jersey imposes a state estate tax. The exemption threshold is $0. Estates below the exemption amount are not subject to state estate tax. This is in addition to the federal estate tax.

Inheritance Tax: New Jersey imposes an inheritance tax. Class A (spouse, children, parents, grandchildren) are exempt. Class C (siblings, son/daughter-in-law) pay 11-16% above $25,000. Class D (all others) pay 15-16% with no exemption.

Probate Process

New Jersey uses a both probate system. Estates valued below $50,000 may qualify for simplified small estate procedures, such as a small estate affidavit, which avoids full probate.

Elective Share: The surviving spouse may elect to take one-third of the augmented estate.

Will Requirements

In New Jersey, a valid will requires:

• The testator must be at least 18 years old and of sound mind
• The will must be in writing
• The will must be signed by the testator (or by another person at the testator's direction)
• 2 witnesses must sign the will

Holographic (Handwritten) Wills: Recognized as valid in New Jersey. A holographic will must be entirely in the testator's handwriting and signed by the testator.

Self-Proving Affidavit: Notarization is required for a self-proving affidavit, which allows the will to be admitted to probate without witness testimony.

Digital/Electronic Wills: Not currently authorized under state law.

Power of Attorney

New Jersey provides a statutory power of attorney form that is widely accepted by financial institutions and government agencies.

A durable power of attorney remains effective if the principal becomes incapacitated. This is a critical estate planning document for New Jersey residents.

Medicaid Planning

New Jersey follows the federal Medicaid look-back period of 60 months (5 years). Any transfers of assets for less than fair market value made within this period before applying for Medicaid may result in a penalty period of ineligibility.

Planning for potential long-term care needs should begin well in advance of the look-back period. Consult with an elder law attorney in New Jersey for strategies specific to your situation.