Exempts transfers of residential real property between family members from inheritance tax.

S 985 would exempt transfers of residential real property (such as single- or two-family homes, including attached garages) between family members who already co-own the property from New Jersey's inheritance tax. Currently, only transfers to spouses, domestic partners, children, and some immediate relatives are exempt; this bill expands the exemption to include siblings, cousins, nieces, nephews, aunts, uncles, and in-laws. The change applies to property passing between co-owning family members, not new transfers to unrelated parties. The bill would take effect for taxable years beginning after its enactment.