New Jersey repealed its state estate tax for deaths on or after January 1, 2018, but it still charges an inheritance tax that depends entirely on how closely a beneficiary is related to the deceased. A valid New Jersey will must be signed by the testator and by two witnesses.
Because New Jersey's inheritance tax treats a spouse very differently from a friend or unmarried partner, who you name as a beneficiary matters as much as how much you leave. A full New Jersey plan usually includes a will, a durable power of attorney, and health care directives. FastWill's online will builder can help you think through how New Jersey's inheritance tax applies to your specific beneficiaries.
Does New Jersey Have an Estate Tax or Inheritance Tax
New Jersey repealed its estate tax effective January 1, 2018, so the state estate tax no longer applies here. New Jersey does still charge an inheritance tax, organized into beneficiary classes: Class A beneficiaries (spouses, civil union partners, children, stepchildren, grandchildren, and parents) pay nothing, while Class C beneficiaries (siblings and in-laws) and Class D beneficiaries (nieces, nephews, friends, and unmarried partners) pay rates that can run from roughly 11 to 16 percent, generally starting after a modest exemption for Class C and from close to the first dollar for Class D. The federal estate tax is separate and applies only above $15 million per person in 2026. Confirm current New Jersey inheritance tax rates and exemptions with the state Division of Taxation before relying on specific figures.
How to Make a Valid Will in New Jersey
Under N.J.S.A. 3B:3-2, a will must be signed by the testator and by at least two witnesses, each of whom signs within a reasonable time after witnessing the signing or the testator's acknowledgment of the will. A New Jersey will should clearly identify the testator, name an executor, outline how assets are distributed, and appoint guardians for any minor children.
- Be 18 or older and of sound mind
- Put the will in writing and sign it yourself
- Have two witnesses sign within a reasonable time of witnessing your signature
- Name an executor and a guardian for minor children
What Happens if You Die Without a Will in New Jersey
Without a valid will, New Jersey intestacy law decides who inherits, and the state's inheritance tax still applies to whatever each beneficiary receives, based on that person's relationship to the deceased. Executors must file the will in Surrogate's Court, obtain letters testamentary, notify heirs, inventory and appraise assets, and settle both debts and any inheritance tax before distributing what remains.
Trusts and Probate in New Jersey
New Jersey probate requires careful attention to both the inheritance tax return and the usual estate administration steps, which makes professional guidance especially valuable here compared to states with no inheritance tax at all. A revocable living trust can simplify administration and keep the plan private, but it generally does not avoid New Jersey's inheritance tax, since the tax follows the beneficiary's relationship to the deceased rather than the mechanism used to transfer the asset.
Because the inheritance tax class of each beneficiary matters so much in New Jersey, it is worth reviewing your full beneficiary list with an attorney rather than assuming a will or trust alone solves the tax question. Our guide to the difference between a will and a trust covers the basic tradeoffs.
Powers of Attorney and Health Care Decisions
A Financial Power of Attorney in New Jersey lets a trusted agent manage bank accounts and investments, pay bills, file taxes, and handle real estate or business transactions if you become incapacitated. A Living Will and a Health Care Proxy (a power of attorney for health care) work together to record your treatment preferences and name someone to make medical decisions on your behalf.
If you have moved to or from New Jersey, see our guide on updating your will, trust, and power of attorney after a move, since inheritance tax exposure depends on your state of residence and can change significantly.
Frequently Asked Questions
Does New Jersey still have an estate tax
No. New Jersey repealed its state estate tax for deaths on or after January 1, 2018.
Does New Jersey have an inheritance tax
Yes. New Jersey charges an inheritance tax based on the beneficiary's relationship to the deceased, with spouses, children, and parents fully exempt and more distant relatives or unrelated beneficiaries taxed at higher rates.
Do I owe New Jersey inheritance tax if I inherit from my parent
Generally no. Children are a Class A beneficiary in New Jersey and pay no inheritance tax.
Does a trust avoid New Jersey inheritance tax
Generally no. New Jersey's inheritance tax follows the beneficiary's relationship to the deceased rather than the method of transfer, so a trust is not primarily a way to avoid it.
How many witnesses does a New Jersey will need
Two witnesses must sign within a reasonable time of witnessing the testator's signature or acknowledgment for the will to be valid.
New Jersey's inheritance tax structure makes beneficiary planning especially important here, even though the state estate tax is gone. See FastWill's plans and pricing to get started.
