Quick answer: life insurance to a named beneficiary, transfers under $500, and gifts to qualifying charities all escape this tax, on top of the class-based rates in Rates & Who Pays.
Life insurance passes outside the tax entirely
A $500 floor, even for Class D
Class D beneficiaries otherwise have essentially no exemption — but transfers under $500 fall below the tax's threshold entirely, regardless of class. It's a modest floor, but a real one, and the only relief a Class D beneficiary gets outside of life insurance.
Class E charities are fully exempt
Class E covers the State of New Jersey and its political subdivisions, educational institutions, churches, hospitals, public libraries, and most 501(c)(3) charitable organizations — a charitable bequest under a will passes to these organizations with no inheritance tax at all.
A revocable trust doesn't avoid this tax
Assets held in a revocable trust are still treated as part of the taxable transfer for New Jersey inheritance tax purposes, since the decedent retained control over them during life. Simply retitling assets into this kind of trust doesn't change who owes the tax or how much.
A local probate attorney can review your estate — many offer a free consultation.
Class A waivers (Form L-8 or L-9) must still be filed even when no tax is owed — exempt status doesn't eliminate the paperwork needed to release frozen accounts and transfer deeds.