Quick answer: New Jersey has one of the few remaining state inheritance taxes, though spouses, children and grandchildren (Class A beneficiaries) are exempt. Its estate tax was repealed in 2018. For NRIs around Edison and central Jersey, the practical issue is the same as elsewhere: a New Jersey will goes through the county Surrogate, while Indian assets need a document Indian institutions accept — often a separate Indian will.
Key takeaways
- NJ inheritance tax generally applies to gifts to siblings, nieces, nephews and unrelated people, not spouses or children.
- New Jersey probate through the County Surrogate is relatively streamlined — but it doesn't reach Indian assets directly.
- Leaving Indian property to a sibling or nephew may carry NJ inheritance-tax consequences — check with a NJ adviser.
NJ inheritance tax and Indian bequests
Because NJ inheritance tax depends on the beneficiary's class, the same Indian flat left to a child or to a brother can have very different NJ tax results. Coordinate who receives Indian assets with your NJ attorney or CPA.
County Surrogate vs Indian process
A NJ Surrogate can admit your NJ will quickly. Using that probated will in India still typically requires certified copies and Indian court steps. An Indian will avoids that dependency.
Signing your Indian will in this state
The Indian will is governed by Indian law, not state law, so the state's own witness rules don't decide its validity. Sign in front of two adult witnesses who are not beneficiaries; each should watch you sign and sign in your presence. A notary is optional.
Frequently asked questions
- Does New Jersey have an estate tax?
- No, it was repealed from 2018. The separate inheritance tax still exists for certain beneficiaries.
- Do my children pay NJ inheritance tax on Indian property?
- Children are Class A beneficiaries and are generally exempt.