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Articles Tagged with “New Jersey”

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The New Jersey First Act makes it mandatory for many public officers and employees to live in New Jersey. The law, which went into effect September 1, 2011, requires all New Jersey state and local government employees to reside in New Jersey unless otherwise exempted. This includes, for example, employees of public agencies, commissions, public institutions of higher education, and school boards.

Employees who were already employed as of September 1, 2011 are grandfathered in, meaning they are not required to meet the residency requirement and are not required to move to New Jersey if they were not required to under prior law. However, those who begin working after September 1, 2011 must reside in New Jersey. If they do not, they have one year following the start of their employment to relocate to New Jersey. If the new employee does not move within a one year period, she may be removed from her position. The September 1, 2011 cutoff date is determined based upon when the employee actually started working, not when she received an offer of employment.

If there is a break in employment of more than seven days, an employee previously grandfathered in, may lose that status and become subject to the residency requirement. A “break in public service,” while not set forth in the language of the law, is defined by the New Jersey Civil Service Commission as “an actual separation from employment for more than seven calendar days due to such causes as resignation, retirement, layoff, or disciplinary removal.” Generally, a resignation for the purposes of a new public appointment in the same governmental jurisdiction is not considered a break in public service.
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Thumbnail image for 800px-Flower-arrangement-funeral-white.jpgGifting your assets to your intended beneficiaries is an effective way to minimize Federal and New Jersey Estate taxes. In order to do so, you must consider the tax implications of making the gift, who will receive the gift, the type of gift, the value of the gift, and the cost basis of the gift.

There are several possible tax liabilities which can be incurred as the result of making a gift: federal gift tax, capital gains tax, generation skipping transfer tax, federal estate tax, New Jersey estate tax, and New Jersey inheritance tax.

Gifts made in contemplation of death can trigger New Jersey inheritance tax liability if the value of the gift is over $500 and they are made within three years of the date of a person’s death. New Jersey Inheritance tax is a tax imposed upon certain classes of beneficiaries. Thus, you must consider who is receiving the gift before you can determine if this will result in liability. The New Jersey tax code separates beneficiaries into “Classes.” Class A beneficiaries pay no inheritance tax, Class C beneficiaries will pay tax on gifts over $25,000 made within three years of the date of death and Class D beneficiaries will pay tax on gifts over $500 made within three years of the date of death.

The decedent’s spouse, civil union partner, domestic partner, children, grandchildren, great-grandchildren, parents, grandparents, great-grandparents, and step-children are Class A beneficiaries, and no inheritance tax will be attributable to gifts made to these people. The decedent’s brother and sister, and son-in-law, and daughter-in-law (if they are the spouse of decedent’s predeceased child) are Class C beneficiaries. Anyone not included in Class A or Class C are Class D Beneficiaries.
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