New Jersey eliminated its estate tax in 2018, but it still levies an inheritance tax on assets passing to most non-immediate-family heirs. Unlike an estate tax (which is paid by the estate), New Jersey's inheritance tax is owed by the beneficiary — and applies regardless of estate size.
How Probate Works in New Jersey
New Jersey probate begins at the Surrogate's Court in the county where the deceased was domiciled. The Surrogate is an elected official who handles most routine probate matters; contested matters go to the Superior Court, Chancery Division.
The process is relatively accessible in New Jersey. After the will is admitted and the executor is appointed, the executor proceeds largely independently — inventorying assets, notifying creditors, paying debts and taxes, and ultimately distributing the estate. The 9-month creditor period is among the longer ones in the Northeast, which drives the overall timeline.
Small Estate Shortcuts in New Jersey
When the gross estate is $50,000 or less, heirs can file an Affidavit of Surviving Spouse (or heir) with the Surrogate's Court to transfer assets without full administration. The process is simpler and faster than formal probate, though it still requires a Surrogate's Court filing. Real property generally requires a court proceeding regardless of estate size.
New Jersey Inheritance Tax
New Jersey imposes an inheritance tax based on the beneficiary's relationship to the deceased:
- 0% — Class A: surviving spouse, civil union partner, domestic partner, parents, grandparents, children, grandchildren
- 11%–16% — Class C: siblings, sons-in-law, daughters-in-law
- 15%–16% — Class D: all other beneficiaries (friends, more distant relatives)
The inheritance tax is due within 8 months of death. Class A beneficiaries pay nothing — which means most immediate family transfers are tax-free. However, nieces, nephews, friends, and other non-immediate family face significant tax rates starting at 11%.
How Long Does Probate Take in New Jersey?
New Jersey probate typically takes 9 to 18 months. The 9-month creditor period is the primary driver, and the inheritance tax filing requirement adds additional administrative steps. Bergen, Essex, and Hudson County courts can have moderate backlogs.
Executor Compensation
New Jersey sets executor commissions at: 5% of the first $200,000 of the estate, and 3.5% of the next $800,000. For estates over $1 million, the rate is negotiable. Additional commissions may be earned for managing real estate or other complex assets. All commissions are paid from estate funds.