The executor or trustee files Form NJ-1041 for a resident estate or trust with gross income of more than $10,000 on 2025 returns. For a nonresident estate or trust with New Jersey income, the Division of Taxation counts income from all sources toward the $10,000.
NJ Fiduciary Income Tax Return:Estate & Trust Tax
Wasserman Accounting CPAs prepares the NJ fiduciary income tax return, federal Form 1041 and the New Jersey inheritance tax return for executors, administrators and trustees. Call 609-281-8096.
Estate and trust tax returns and New Jersey inheritance tax
The executor or trustee files Form NJ-1041 when the estate or trust has gross income of more than $10,000, and federal Form 1041 at lower income levels (2025 returns).
New Jersey taxes what siblings, a child’s spouse, nieces, nephews and friends inherit, and has no estate tax for deaths on or after January 1, 2018.
Pay any inheritance tax within eight months of the death; a New Jersey bank releases no more than 50% of the decedent’s accounts before it receives a tax waiver.
Who files an NJ fiduciary income tax return
The executor or trustee also files federal Form 1041 on 2025 returns for:
- An estate with gross income of $600 or more, or a beneficiary who is not a US citizen or resident
- A trust with any taxable income, gross income of $600 or more, or a beneficiary who is not a US citizen or resident
Does New Jersey have an estate or inheritance tax?
New Jersey has no estate tax for deaths on or after January 1, 2018. It charges inheritance tax on what a beneficiary receives, at a rate based on their relationship to the person who died.
New Jersey inheritance tax rates by beneficiary class
| Class | Who is in it | Tax, 2026 rates |
|---|---|---|
| A | Spouse, civil union or domestic partner, children, stepchildren, grandchildren, parents and grandparents | None |
| C | Brothers and sisters, including half siblings, and the spouse, civil union partner, or surviving spouse or partner of the decedent’s child | None on the first $25,000, then 11% to 16% |
| D | Everyone not in Class A, C or E, including nieces, nephews, friends and step-grandchildren | 15% on the first $700,000, 16% on the rest |
| E | Charities, religious and educational institutions, and the State | None |
- Class C exemption:the first $25,000, no tax
- Taxed at 11%:the remaining $175,000
- Inheritance tax:$19,250
Inheritance tax return, deadline and waivers
File Form IT-R, the New Jersey inheritance tax return, when any beneficiary is in Class C, D or E, even if no tax is due.
Pay any tax within eight months of the date of death; after that, the Division charges interest at 10% a year (2026 rate).
A New Jersey bank does not close the decedent’s accounts without a tax waiver (Form L-8 or 0-1). Before the waiver, the bank may release up to 50% of the funds to the executor, administrator or a joint owner.
The Division issues the 0-1 waiver after you file a return, and you need it to transfer the decedent’s New Jersey real estate.
Estate and trust tax services in NJ
- Prepare federal Form 1041 and New Jersey NJ-1041 fiduciary returns
- Issue Schedule K-1 and Schedule NJK-1 to beneficiaries
- Keep the fiduciary accounts and claim the income distribution deduction for income paid to beneficiaries, who report that income on their own returns
- Prepare the New Jersey inheritance tax return (Form IT-R)
- Prepare the final federal and New Jersey income tax returns of the person who died
- Coordinate the returns and deadlines with your estate attorney
Who we help with estate and trust tax
Executors and administrators settling an estate
Trustees administering a trust
Beneficiaries with a Schedule K-1 or NJK-1 to report
Estate and trust tax fees
We price the work on the returns you file and the size of the estate or trust:
- Which returns you file: Form 1041, NJ-1041, Form IT-R
- How many beneficiaries receive a K-1
- Whether any beneficiary is in Class C or D
- How many assets the estate or trust holds, and whether they include real estate or a business
- Whether we keep the fiduciary accounts
An estate with one federal and one New Jersey return, and Class A beneficiaries only, is at the light end. These are the factors, not a quote.
Ask a CPA about an estate or trust
Reviewed by April Moore, EA, Practice Manager at Wasserman Accounting CPAs. Enrolled Agent with 20 years in business tax, payroll, and quarterly and annual regulatory filings.
Help with a New Jersey estate or trust tax return
Call with the will or trust document and the date of death, and we list the returns you file and their deadlines. Your first call is with a CPA or EA.
Email: george@wasserman-cpa.net105 Creek Crossing Blvd., Hainesport, NJ 08036