If you have a long-term partner, you may expect them to inherit from you after your death. In New Jersey, an unmarried partner who is not a registered domestic partner or civil union partner has no automatic right to inherit through the state’s intestacy laws. Without a valid will, your probate estate passes under those laws instead.
You can use a will or trust to leave property to your partner. New Jersey gives separate inheritance rights to registered domestic partners and civil union partners.
Naming your partner in your estate plan
Your probate estate includes property that passes through your will or under state inheritance law. A will lets you choose who receives that property.
If you die without a valid will, New Jersey law decides who inherits your probate estate. Those rules recognize certain relatives as well as a surviving spouse, civil union partner or registered domestic partner. An unmarried partner without one of those legal relationships does not receive a share under the default intestacy rules.
You may also use a trust to hold property for your partner. You set the terms for how the trustee manages or gives out those assets. This approach may give you more control over when and how your partner receives the property.
How inheritance tax affects your partner
Your relationship with the person who inherits also affects New Jersey inheritance tax. A spouse, civil union partner or registered domestic partner falls into Class A. New Jersey does not charge inheritance tax on property that a Class A beneficiary receives.
A live-in partner who is not a registered domestic partner generally falls into Class D. New Jersey exempts Class D transfers under $500. For transfers of $500 or more, the state charges 15% on amounts up to $700,000 and 16% on amounts above $700,000. That tax reduces the amount your partner receives.
Reviewing your plans
You may want to review how you own your major assets and who you named on your beneficiary forms. It may also help to compare those details with your will or trust. With legal guidance, this review could help you find outdated or conflicting terms and give those handling your estate clearer records to work with.