Trusts to avoid probate and sometimes reduce NJ Estate Tax

Trusts to avoid probate and sometimes reduce NJ Estate Tax

Chart shows the key rates that will change between 2004 and 2010.

2004
Applicable Exclusion Amount - 1.5 Million
Lowest Estate Tax Rate 45%
Highest Estate Tax Rate 48%
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate 41%
Highest Gift Tax Rate 48%
GST Exemption Amount Allowable - $1.5 Millio
GST Transfer Tax Rate 48%

2005
Applicable Exclusion Amount - 1.5 Million
Lowest Estate Tax Rate 45%
Highest Estate Tax Rate 47%
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate 41%
Highest Gift Tax Rate 47%
GST Exemption Amount Allowable - $1.5 Million
GST Transfer Tax Rate 47%

2006
Applicable Exclusion Amount - 2 Million
Lowest Estate Tax Rate 46%
Highest Estate Tax Rate 46%
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate 41%
Highest Gift Tax Rate 46%
GST Exemption Amount Allowable - $2 Million
GST Transfer Tax Rate 46%

2007
Applicable Exclusion Amount - 2 Million
Lowest Estate Tax Rate 45%
Highest Estate Tax Rate 45%
Lifetime Gifts Market Value Exemption -$1 Million
Lowest Gift Tax Rate 41%
Highest Gift Tax Rate 45%
GST Exemption Amount Allowable - $2 Million
GST Transfer Tax Rate 45%

2008
Applicable Exclusion Amount - 2 Million
Lowest Estate Tax Rate 45%
Highest Estate Tax Rate 45%
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate 41%
Highest Gift Tax Rate 45%
GST Exemption Amount Allowable - $2 Million
GST Transfer Tax Rate 45%

2009
Applicable Exclusion Amount - 3.5 Million
Lowest Estate Tax Rate 45%
Highest Estate Tax Rate 45%
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate 41%
Highest Gift Tax Rate 45%
GST Exemption Amount Allowable - $3.5 Million
GST Transfer Tax Rate 45%

2010
Applicable Exclusion Amount - Repealed
Lowest Estate Tax Rate - Repealed
Highest Estate Tax Rate - Repealed
Lifetime Gifts Market Value Exemption - $1 Million
Lowest Gift Tax Rate 35%
Highest Gift Tax Rate 35%
GST Exemption Amount Allowable - Repealed
GST Transfer Tax Rate - Repealed

2011+
Applicable Exclusion Amount - 1.1 Million
Lowest Estate Tax Rate 41%
Highest Estate Tax Rate 55%
Lifetime Gifts Market Value Exemption - $1.1 Million
Lowest Gift Tax Rate 41%
Highest Gift Tax Rate 50%
GST Exemption Amount Allowable - $1.1 Million
GST Transfer Tax Rate 55%