Estate planning rules in New Jersey
Key takeaway
New Jersey estate planning rules address inheritance tax, intestacy, probate proceedings, powers of attorney and transactions involving trust property.
Property interests and probate
New Jersey intestacy law determines who inherits an estate and who may be appointed to administer the estate following a death without a valid testamentary document.
New Jersey intestacy rules apply to probate assets. Certain jointly owned assets and assets with beneficiary designations may pass directly to other people under New Jersey probate rules.
New Jersey permits presentation of a will upon death. Admission of a will to probate by the New Jersey Surrogate's Court is permitted at least 10 days after death.
New Jersey law treats land use restrictions as equitable servitudes. A court held that granting a conservation servitude created no possessory interest in the New Jersey land burdened by the servitude.
Powers of attorney
New Jersey law places a fiduciary duty on an attorney-in-fact toward the principal. The New Jersey duty includes acting within the powers delegated by the power of attorney and acting solely for the principal's benefit.
Trustee transactions
New Jersey's trust code makes a transaction voidable by a beneficiary if the transaction is shown to be unfair and the trustee derives a gain attributable to the trust. The New Jersey rule concerns transactions during the trust or while the trustee has significant influence.
Inheritance tax
New Jersey inheritance tax depends on the beneficiaries' relationships to the decedent and the amounts received. New Jersey inheritance tax also depends on asset values at death, debts, asset types and whether the decedent was a New Jersey resident.
A beneficiary's residence is irrelevant to New Jersey inheritance tax. For a nonresident decedent, New Jersey inheritance tax applies only to real property and tangible personal property in New Jersey.
New Jersey inheritance tax returns, if required, and related tax payments are due within eight months of death.
Thresholds and rates change. Check the state's own current figures.
Thresholds and rates change. Check the state's own current figures.
Common questions
What establishes a holographic will in New Jersey?
A New Jersey holographic will may be valid if the signature and key provisions are handwritten. Probate of a New Jersey holographic will takes place in Superior Court, as described by the Bergen County Surrogate's Court.
Does a New Jersey trustee's resignation discharge liability?
Under New Jersey's trust code, resignation does not discharge a trustee's liability for acts or omissions, and any sureties on the resigning trustee's bond remain liable for acts or omissions.