Where the estate is opened.
See the tax section for the exemption or the repeal.
Living trust or probate
A revocable living trust holds assets you title in the trustee's name. You can serve as trustee while you are able.
At death, the successor trustee handles those assets. Property you leave in your own name can still go through the probate court. A pour-over will sends leftover assets into the trust, and those leftover assets may pass through probate first.
The probate path
In New Jersey, the estate is opened in the County Surrogate and the Superior Court.
N.J.S. 3B:3-17 says the surrogates of the several counties or the Superior Court may take depositions to wills, admit wills to probate, and grant letters testamentary or letters of administration with the will annexed. Creditors must present claims in writing and under oath to the personal representative within nine months from the date of death. For small intestate estates, an affidavit before the Surrogate or the Superior Court can pass assets without a full administration under N.J.S. 3B:10-3 or 3B:10-4.
Source: N.J.S. 3B:3-17
Fees
In New Jersey, probate compensation is a statutory commission.
N.J.S. 3B:18-14 states commissions on all corpus received by the fiduciary: 5% on the first $200,000, 3.5% on the excess over $200,000 up to $1,000,000, 2% on the excess over $1,000,000, and 1% of all corpus for each additional fiduciary, provided that no one fiduciary shall be entitled to any greater commission than that which would be allowed if there were but one fiduciary involved. The same section says such commissions may be reduced by the court having jurisdiction over the estate only upon application by a beneficiary adversely affected.
Source: N.J.S. 3B:18-14 Corpus commissions
Small estate
New Jersey has a small-estate procedure. The statute states who can use it.
There are two affidavit procedures, so one integer is not used. Under N.J.S. 3B:10-3, if the total value of the real and personal assets of an intestate will not exceed $50,000, the surviving spouse, civil union partner, or domestic partner may execute an affidavit before the Surrogate or the Superior Court and take all the real and personal assets without administration. Assets up to $10,000 are free from the intestate's debts. Under N.J.S. 3B:10-4, if there is no surviving spouse, civil union partner, or domestic partner and the real and personal assets will not exceed $20,000, an heir with the written consent of the other heirs may use an affidavit and receive the assets without administration or a bond. No waiting period is stated on those pages.
Source: N.J.S. 3B:10-3 and 3B:10-4
Estate or inheritance tax
New Jersey levies an inheritance tax.
The Division of Taxation states that New Jersey Estate Tax is no longer imposed for individuals who died on or after January 1, 2018. Inheritance tax remains. On the Division's tax-rates page, Class A is no tax. Class C is no tax on the first $25,000, then 11% on the next $1,075,000, 13% on the next $300,000, 14% on the next $300,000, and 16% over $1,700,000. Class D is 15% on the first $700,000 and 16% over $700,000.
Source: New Jersey Division of Taxation, Inheritance and Estate Tax
Questions
The answers use the same statute and court pages as the sections above.
Does a living trust avoid probate in New Jersey?
A revocable living trust holds the assets you title in the trustee's name. The successor trustee handles those assets. Property still titled in your own name can be a probate matter. A pour-over will can send leftover assets into the trust, and those leftover assets may still pass through probate first.
What is the small-estate procedure in New Jersey?
There are two affidavit procedures, so one integer is not used. Under N.J.S. 3B:10-3, if the total value of the real and personal assets of an intestate will not exceed $50,000, the surviving spouse, civil union partner, or domestic partner may execute an affidavit before the Surrogate or the Superior Court and take all the real and personal assets without administration. Assets up to $10,000 are free from the intestate's debts. Under N.J.S. 3B:10-4, if there is no surviving spouse, civil union partner, or domestic partner and the real and personal assets will not exceed $20,000, an heir with the written consent of the other heirs may use an affidavit and receive the assets without administration or a bond. No waiting period is stated on those pages.
How are probate fees set in New Jersey?
N.J.S. 3B:18-14 states commissions on all corpus received by the fiduciary: 5% on the first $200,000, 3.5% on the excess over $200,000 up to $1,000,000, 2% on the excess over $1,000,000, and 1% of all corpus for each additional fiduciary, provided that no one fiduciary shall be entitled to any greater commission than that which would be allowed if there were but one fiduciary involved. The same section says such commissions may be reduced by the court having jurisdiction over the estate only upon application by a beneficiary adversely affected.
Does New Jersey tax an estate or an inheritance?
The Division of Taxation states that New Jersey Estate Tax is no longer imposed for individuals who died on or after January 1, 2018. Inheritance tax remains. On the Division's tax-rates page, Class A is no tax. Class C is no tax on the first $25,000, then 11% on the next $1,075,000, 13% on the next $300,000, 14% on the next $300,000, and 16% over $1,700,000. Class D is 15% on the first $700,000 and 16% over $700,000.
Sources
These are the statute and court pages used above.