According to various news reports, it appears that New Jersey will officially be eliminating the estate tax. The deal to eliminate the estate tax is part of a larger deal that increases the gas tax, reduces the sales tax slightly, gives the working poor a larger tax credit, gives a tax cut on retirement income and gives a tax exemption for veterans who have been honorably discharged.
The exact details are still murky, and as far as I am aware the final deal hasn’t been published. It is my belief that the estate tax exemption will increase from $675,000 to $2,000,000 effective January 1, 2017 and be phased out completely over the next few years.
I have not yet heard any reports regarding whether or not the NJ inheritance tax will also be eliminated. As I learn more, I will pass it on.