As many of you know, the new Democratic Governor of New Jersey, Phil Murphy, was engaged in a recent budget showdown with members of his own party. A last minute government shutdown was avoided, however, as the legislature and the Governor came to terms on a variety of tax increases and spending priorities. For more specifics, NJ.com has a good article here.
From the perspective of estate planning attorneys, what is noteworthy is that there was never any mention of bringing the New Jersey estate tax back. One of the concerns with many lawyers was whether, with a new Governor, the estate tax repeal would be lifted. This does not appear to be the case any time soon, so it looks as if we should continue to plan as if New Jersey will not have a state estate tax, at least for the time being.
Remember, New Jersey still does have an inheritance tax though.
As a reminder, this permanent change means people who have older Wills and Trusts should bring them in for a review. It is possible that the tax formulas are outdated and that there are new planning opportunities to simply your documents or minimize capital gains taxes upon your death.
