Toms River, NJ - Christine Matus of The Matus Law Group (https://matuslaw.com/how-to-transfer-property-to-a-family-member-without-paying-taxes/) released practical guidance to help households navigate real estate transfers among relatives without unnecessary tax exposure. As a leading New Jersey estate planning attorney, Matus outlines coordinated federal and state strategies designed to reduce gift, estate, and potential capital gains consequences while preserving long-term goals across generations.
The advisory explains key federal thresholds that frequently guide decision-making. Under the annual gift tax exclusion, gifts up to $18,000 per recipient in 2024 and $19,000 in 2025 may be made without a filing requirement beyond standard records. Married couples may elect gift splitting for combined amounts of $36,000 in 2024 and $38,000 in 2025 per recipient. For larger transfers, the lifetime gift and estate tax exemption stands at 13.61 million dollars in 2024 and 13.99 million dollars in 2025, with excess gifts reported on IRS Form 709 and applied against the lifetime amount. The firm notes the scheduled reduction of the federal exemption beginning in 2026, which heightens the importance of timely planning with a New Jersey estate planning attorney when significant real property is involved.
The release also addresses New Jersey’s distinct framework. The state imposes no gift tax and repealed its estate tax in 2018, yet it maintains an inheritance tax that varies by beneficiary class. Class A beneficiaries, including spouses, children, grandchildren, and parents, are exempt. By contrast, many Class C and Class D beneficiaries, such as siblings, in-laws, nieces, nephews, cousins, unmarried partners, and friends, may face rates that commonly range in the low-to-mid teens depending on value. Because the inheritance tax attaches to the beneficiary rather than the estate, beneficiary selection and timing can materially affect outcomes. A New Jersey estate planning attorney can align beneficiary designations, titling, and anticipated transfers with these rules.
Beyond tax thresholds, the guidance highlights practical structures that can support family objectives. Inheritance through a will or revocable living trust often pairs tax efficiency with a stepped-up basis at death for Class A beneficiaries. Outright lifetime gifts can remove future appreciation from a taxable estate, but they carry the donor’s basis forward and may affect Medicaid eligibility because of the five-year lookback. Trust solutions, including an irrevocable trust or a Qualified Personal Residence Trust, can reduce transfer values and provide continued occupancy for a defined term, subject to survivorship and administration requirements. On the conveyancing side, accurate deed selection (quitclaim or warranty as appropriate), a title search to identify liens or judgments, attention to any due-on-sale clause in an existing mortgage, and proper notarization and county recording remain essential. Many counties permit electronic recording, which can streamline finalization. Coordinating these steps under the guidance of a New Jersey estate planning attorney helps reduce avoidable mistakes and post-transfer disputes.
About The Matus Law Group:
The Matus Law Group is a New Jersey firm focused on estate planning, special needs planning, probate and estate administration, and residential real estate matters. Led by attorney Christine Matus, the team serves clients across New Jersey, including Ocean and Monmouth Counties and surrounding communities. The firm emphasizes clear planning, thoughtful beneficiary alignment, and practical real estate solutions that support multigenerational goals. For a consultation, contact (732) 785-4453 or visit www.matuslaw.com.
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Company Name: The Matus Law Group
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Website: https://matuslaw.com/monmouth-county-nj/
