In 2025, only estates over $13,900,000 will have federal death tax exposure. Married couples will escape federal estate tax if their combined value is just under $28,000,000. N.J. has no estate death tax. But beware, the current estate tax law is set to expire December 31, 2025, unless Congress and President Trump agree to extend the law. Most commentators believe the law will be extended to the 2025 exemption amounts plus inflation adjustment before the end of next year.
The annual gift tax exemption is also set to be increased to $19,000 per person, per year without either paying gift taxes or using a portion of their estate tax exemption credit. For a married couple, the annual gifting exemption amount is $38,000 per year.
This generous exemption amount from paying death taxes is a benefit of the recent presidential election.
To discuss your NJ estate planning, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.com. Please ask us about our video conferencing or telephone consultations if you are unable to come to our office.
By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, NJ Estate Planning Attorney