In New Jersey, an inheritance will be taxed based on the “Class” scheme below: Class A beneficiaries are exempt from the inheritance tax; they pay no NJ inheritance tax. This group includes the deceased person’s spouse, domestic partner, or civil union partner, parent or grandparent, child (biological, adopted, or mutually acknowledged), stepchild (but not step- grandchild or great-step-grandchild), grandchild or other lineal descendant of a child. (Class B was deleted by the legislature in 2018) Class C: includes the decedent’s sibling(s), half-sibling(s), son-in-law(s), daughter-in-law(s), and widows of deceased children. Class C beneficiaries are taxed as follows: 11% tax on any amount over $25,000 up to $1,100,000 (no tax below $25,000) 13% on any amount over $1,100,000 up to $1,400,000 14% on any amount over $1,400,000 up to $1,700,000 16% on any amount over $1,700,000 Class D: includes anyone who is not a Class A, C or E beneficiary. So, a nephew, niece, cousin, fiancé, friend, or non-civil union partner is considered a Class D beneficiary. Class D beneficiaries are taxed as follows: 15% on any amount up to $700,000 (unless the bequest is less than $500) 16% on any amount in excess of $700,000 Class E: charitable beneficiaries owe no inheritance tax.