# Estate and Wealth Tax Planning in NJ - Shree Accounting LLCSource: https://shreecpas.com/estate-wealth-tax-planning-in-nj/ Publisher: Shree Accounting LLC, 688 Tabor Road, Morris Plains, NJ 07950 · (201) 888-1035 · pras@shreecpas.com> Estate, gift and trust tax planning for New Jersey families: the $15M federal exemption, NJ inheritance tax, Form 1041 and succession.# Estate and Wealth Tax Planning in NJEstate, gift and trust tax planning for New Jersey families: the $15M federal exemption, NJ inheritance tax, Form 1041 and succession.Estate planning is mostly a legal exercise, but nearly every decision in it has a tax result: which assets go into a trust, when gifts are made, how a business passes to the next generation, and who pays income tax on trust earnings. We work alongside your estate attorney and financial advisor on the tax side, and we prepare the returns that follow.## The federal picture for 2026The federal estate and gift tax exemption is $15 million per person for 2026, $30 million for a married couple, and the 2025 tax law made that level permanent with inflation adjustments. You can also give $19,000 per recipient in 2026 without using any of it. Above the exemption, the rate is 40%.## New Jersey inheritance taxNew Jersey repealed its estate tax in 2018 but kept its inheritance tax. Transfers to a spouse, children, grandchildren and parents are exempt. Transfers to siblings, nieces, nephews, friends and other beneficiaries can be taxed at rates up to 16%. Beneficiary designations and lifetime gifts can change the result significantly.## What we handle- Gift tax returns (Form 709), including elections that use the lifetime exemption. - Trust and estate income tax returns (Form 1041), including decisions about distributing or retaining income. - New Jersey inheritance tax returns and waivers. - Business succession modeling: gifting shares over time, installment sales and buy-sell arrangements. - Coordination of trusts, partnerships and real estate held across several states.## Frequently asked questions### If my estate is under $15 million, do I need tax planning?For federal estate tax, possibly not. But income tax on trusts, New Jersey inheritance tax for non-lineal heirs, capital gains basis at death and business succession still matter at almost any size.### Why are trusts taxed so heavily?Trust income tax brackets are compressed and reach the top 37% rate at about $16,000 of retained income. Distributing income to beneficiaries in lower brackets often reduces the total tax.Talk it through with a CPAA free 45-minute strategy session with an experienced CPA. We’ll look at your situation and tell you exactly what we’d do, whether or not you engage us.[Book a free strategy session](https://shreecpas.com/contact/) [(201) 888-1035](tel:+12018881035)Talk to a CPAFree 45-minute strategy session. Reply within one business day.[Book a strategy session](https://shreecpas.com/contact/)[(201) 888-1035](tel:+12018881035)Written and reviewed by[Prasanna Thiruvenkatachari](https://shreecpas.com/about/)CPA (New Jersey), CFE, CGMALast reviewed October 16, 2026Other services- [Client Accounting Services in New Jersey](https://shreecpas.com/services/client-accounting-services/) - [Tax Advisory for NJ Businesses and Owners](https://shreecpas.com/services/tax-advisory/) - [CFO Advisory and Cash Flow Forecasting](https://shreecpas.com/services/cfo-advisory/) - [Finance Systems, Automation and AI Tools](https://shreecpas.com/services/finance-automation-ai/) - [Multi-State Tax and Nexus Services](https://shreecpas.com/services/multi-state-tax/) - [NJ and NY Commuter Tax for Remote Workers](https://shreecpas.com/services/nj-ny-commuter-tax/) - [Small Business Bookkeeping, Payroll and Tax](https://shreecpas.com/services/small-business-accounting/) - [Tax Planning and Strategy for NJ Businesses](https://shreecpas.com/services/tax-planning/) - [Tax Preparation Services in New Jersey](https://shreecpas.com/services/tax-preparation/) - [RSU and Stock Option Tax Planning in NJ](https://shreecpas.com/services/equity-compensation-tax/) - [Fractional CFO Services in New Jersey](https://shreecpas.com/services/fractional-cfo/) - [Expat and International Tax CPA](https://shreecpas.com/services/international-expat-tax/) - [Nonprofit Accounting and Form 990 in NJ](https://shreecpas.com/nonprofit-form-990-cpa-in-nj/)## Related readingJuly 13, 20264 minute read### [Beyond the Stethoscope: Why Healthcare Professionals Need a Specialized Tax Strategist](https://shreecpas.com/beyond-the-stethoscope-why-healthcare-professionals-need-a-specialized-tax-strategist/)Many healthcare professionals treat tax season as a historical archiving exercise. 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