Federal Estate Tax Return

If a Federal Estate Tax Return is files, a New Jersey Law requires that a copy of the Federal estate tax return be filed with the Inheritance Tax Branch within 30 days after the filing of the original with the Federal government. Also, the Branch must receive a copy of any communication from the Federal government making any final change in the return, or confirming, increasing or reducing the tax shown to be due.
UNIFIED ESTATE AND GIFT TAX CREDIT
A single unified credit against both estate and gift taxes is available. This credit, to the extent available, reduces dollar-for-dollar estate and gift taxes computed under the unified rates schedule.
No estate or gift taxes would be payable on an estate which is valued at less than $2,000,000.
Please note: The tax rate is subject to change by Congress.

FEDERAL ESTATE & GIFT TAX Contemplation of Death
Gifts made more than three years of death are not included in donor's gross estate; exceptions are life insurance, transfers with a retained life estate, transfers and transfers under powers of appointment; gifts made within three years of death are included in gross estate to determine qualification for current use evaluation, deferred payment of estate tax and Section 303 redemptions, etc.
GIFT TAX ?(Annual Exclusion)
New Jersey does not levy a tax on gifts, except in anticipation of death. Any gift made within 3 years of death is presumed to be in anticipation of death and may be subject to New Jersey Inheritance Tax.
An individual may give an amount up to $10,000 to any one person during a calendar year, exempt from tax. A married couple can give up to $20,000 to a person yearly without tax. Any number of tax-free gifts may be made during a year.
If you make gifts to one person of more than $10,000 during the calendar year, file a Federal Gift Tax Return with the District Director of Internal Revenue.
FEDERAL MARITAL DEDUCTIONS
Presently, unlimited amounts of property can be transferred between spouses without estate or gift tax.
Note: Certain transfers of an interest in property do not apply under this deduction. To determine whether this last note applies to your particular case, you may wait to contact your attorney or the Internal Revenue Service.
FILING FEDERAL ESTATE TAX RETURNS
Form 706 must be filed and any tax due must be paid within 9 months. The nearest Internal Revenue office will furnish tax Form 706:
If your estate is subject to Federal Estate Tax, you may want to seek professional assistance in estate planning. Consideration of tax aspects can save heirs money.

Source http://www.co.middlesex.nj.us/surrogate/taxes.asp