The Transfer Inheritance Tax recognizes five beneficiary
classes, as follows:
classes, as follows:
Class “A” - Father, mother,
grandparents, spouse, child or children of the decedent, adopted child or
children of the decedent, issue of any child or legally adopted child of the
decedent and step-child of the decedent.
grandparents, spouse, child or children of the decedent, adopted child or
children of the decedent, issue of any child or legally adopted child of the
decedent and step-child of the decedent.
Class “B” - Eliminated by
statute effective July 1, 1963.
statute effective July 1, 1963.
Class ”C” - Brother or sister
of the decedent, including half brother and half sister, wife or widow of a son
of the decedent, or husband or widower of a daughter of the decedent.
of the decedent, including half brother and half sister, wife or widow of a son
of the decedent, or husband or widower of a daughter of the decedent.
Class “D” - Every other
transferee, distributee or beneficiary who is not included in Classes “A”, “C”
or “E”.
transferee, distributee or beneficiary who is not included in Classes “A”, “C”
or “E”.
Class “E” - The State of New
Jersey or any political subdivision thereof, or any educational institution,
church, hospital, orphan asylum, public library or Bible and tract society or
to, for the use of or in trust for religious, charitable, benevolent,
scientific, literary or educational purposes, including any institution
instructing the blind in the use of dogs as guides, no part of the net earnings
of which inures to the benefit of any private stockholder or other individual
or corporation; provided, that the exemption does not extend to transfers of
property to such educational institutions and organizations of other states,
the District of Columbia, territories and foreign countries which do not grant
an equal, and like
Jersey or any political subdivision thereof, or any educational institution,
church, hospital, orphan asylum, public library or Bible and tract society or
to, for the use of or in trust for religious, charitable, benevolent,
scientific, literary or educational purposes, including any institution
instructing the blind in the use of dogs as guides, no part of the net earnings
of which inures to the benefit of any private stockholder or other individual
or corporation; provided, that the exemption does not extend to transfers of
property to such educational institutions and organizations of other states,
the District of Columbia, territories and foreign countries which do not grant
an equal, and like
exemption on transfers of
property for the benefit of such institutions and organizations of this State.
property for the benefit of such institutions and organizations of this State.
Rate
The
Transfer Inheritance Tax rates depend on the amount received and the
relationship between the decedent and the beneficiary. No tax is imposed on
class A beneficiaries (father, mother, grandparents, descendants, spouses,
civil union partners, or domestic partners). Class C beneficiaries (brother or
sister of decedent; husband, wife, or widow(er) of a child of decedent; civil
union partner or surviving civil union partner of a child of decedent) are
taxed at 11%–16%, with the first $25,000 exempt. Class D beneficiaries (not
otherwise classified) are taxed at 15%–16%, with no tax on transfers having an
aggregate value of less than $500. Charitable institutions are exempt from tax
Transfer Inheritance Tax rates depend on the amount received and the
relationship between the decedent and the beneficiary. No tax is imposed on
class A beneficiaries (father, mother, grandparents, descendants, spouses,
civil union partners, or domestic partners). Class C beneficiaries (brother or
sister of decedent; husband, wife, or widow(er) of a child of decedent; civil
union partner or surviving civil union partner of a child of decedent) are
taxed at 11%–16%, with the first $25,000 exempt. Class D beneficiaries (not
otherwise classified) are taxed at 15%–16%, with no tax on transfers having an
aggregate value of less than $500. Charitable institutions are exempt from tax
NOTES: If any beneficiary is
claimed to be the mutually acknowledged child of the decedent, said claim
should be set forth in the detailed manner prescribed under N.J.A.C. 18:26-2.6.
For the purposes of the New Jersey Transfer Inheritance Tax an adopted child is
accorded the same status as a natural child and, therefore, his relations are
treated in the same manner as those of a natural child. (i.e. if the decedent’s
adopted son marries, his spouse is “the wife of a son of the decedent” and
therefore a class “C”
claimed to be the mutually acknowledged child of the decedent, said claim
should be set forth in the detailed manner prescribed under N.J.A.C. 18:26-2.6.
For the purposes of the New Jersey Transfer Inheritance Tax an adopted child is
accorded the same status as a natural child and, therefore, his relations are
treated in the same manner as those of a natural child. (i.e. if the decedent’s
adopted son marries, his spouse is “the wife of a son of the decedent” and
therefore a class “C”
beneficiary).
A devise of real property to a husband and
wife as “tenants by the entirety” provides each with a vested life estate, the
remainder being contingent. See N.J.A.C. 18:26-8.12. The issue of stepchildren
ARE Class “D” (NOT Class “A”) beneficiaries.
wife as “tenants by the entirety” provides each with a vested life estate, the
remainder being contingent. See N.J.A.C. 18:26-8.12. The issue of stepchildren
ARE Class “D” (NOT Class “A”) beneficiaries.
The following ARE Class “D” (NOT Class
“C”) beneficiaries: stepbrother or stepsister of the decedent, wife or widow of
a stepchild of the decedent, husband or widower of a step-child of the
decedent, wife or widow of a mutually acknowledged child of the decedent, and
husband or widower of a mutually acknowledged child of the decedent. The fact
that a beneficiary may be considered “nonprofit” by the Internal Revenue
Service does not necessarily mean that it qualifies for exemption as a Class
“E” beneficiary since the criteria are different.
“C”) beneficiaries: stepbrother or stepsister of the decedent, wife or widow of
a stepchild of the decedent, husband or widower of a step-child of the
decedent, wife or widow of a mutually acknowledged child of the decedent, and
husband or widower of a mutually acknowledged child of the decedent. The fact
that a beneficiary may be considered “nonprofit” by the Internal Revenue
Service does not necessarily mean that it qualifies for exemption as a Class
“E” beneficiary since the criteria are different.
TAX RATES
Each class of beneficiary has its own separate tax rate.
EXEMPTIONS
1. The transfer of real and
personal property in this State held by a husband and wife as “tenants by the
entirety” to the surviving spouse is not taxable for New Jersey Inheritance Tax
purposes.
personal property in this State held by a husband and wife as “tenants by the
entirety” to the surviving spouse is not taxable for New Jersey Inheritance Tax
purposes.
2. The transfer of intangible
personal property such as stocks, bonds, corporate securities, bank deposits
and mortgages owned by a nonresident decedent is not subject to the New Jersey
Inheritance Tax.
personal property such as stocks, bonds, corporate securities, bank deposits
and mortgages owned by a nonresident decedent is not subject to the New Jersey
Inheritance Tax.
3. Any sum recovered under the
New Jersey Death Act as compensation for wrongful death of a decedent is not
subject to the New Jersey Inheritance Tax except as provided below:
New Jersey Death Act as compensation for wrongful death of a decedent is not
subject to the New Jersey Inheritance Tax except as provided below:
a. Any sum recovered under the
New Jersey Death Act representing damages sustained by a decedent between the
date of injury and date of death, such as the expenses of care, nursing,
medical attendance, hospital and other charges incident to the injury,
including loss of earnings and pain and suffering are to be included in the
decedent’s estate.
New Jersey Death Act representing damages sustained by a decedent between the
date of injury and date of death, such as the expenses of care, nursing,
medical attendance, hospital and other charges incident to the injury,
including loss of earnings and pain and suffering are to be included in the
decedent’s estate.
b. Where an action is
instituted under the New Jersey Death Act and terminates through the settlement
by a compromise payment without designating the amount to be paid under each
count, the amount which must be included in the inheritance tax return is an
amount, to the extent recovered, which is equal to specific expenses related to
the injury. These expenses are similar to those mentioned in sections a. above
and include funeral expenses, hospitalization and medical expenses, and other
expenses incident to the injury. Any amount which is recovered in excess of
these expenses is considered to be exempt from the tax.
instituted under the New Jersey Death Act and terminates through the settlement
by a compromise payment without designating the amount to be paid under each
count, the amount which must be included in the inheritance tax return is an
amount, to the extent recovered, which is equal to specific expenses related to
the injury. These expenses are similar to those mentioned in sections a. above
and include funeral expenses, hospitalization and medical expenses, and other
expenses incident to the injury. Any amount which is recovered in excess of
these expenses is considered to be exempt from the tax.
4. The proceeds of any contract
of insurance insuring the life of a resident or nonresident decedent paid or
payable, by reason of the death of such decedent, to one or more named beneficiaries
other than the estate, executor or administrator of such decedent are exempt
for New Jersey Inheritance Tax purposes.
of insurance insuring the life of a resident or nonresident decedent paid or
payable, by reason of the death of such decedent, to one or more named beneficiaries
other than the estate, executor or administrator of such decedent are exempt
for New Jersey Inheritance Tax purposes.
5. The transfer of property to
a beneficiary or beneficiaries of a trust created during the lifetime of a
resident or nonresident decedent, to the extent such property results from the
proceeds of any contract of insurance, insuring the life of such decedent and
paid or payable to a trustee or trustees of such decedent by reason of the
death of such decedent, is exempt from the New Jersey Inheritance Tax
irrespective of whether such beneficiary or beneficiaries have a present,
future, vested,
a beneficiary or beneficiaries of a trust created during the lifetime of a
resident or nonresident decedent, to the extent such property results from the
proceeds of any contract of insurance, insuring the life of such decedent and
paid or payable to a trustee or trustees of such decedent by reason of the
death of such decedent, is exempt from the New Jersey Inheritance Tax
irrespective of whether such beneficiary or beneficiaries have a present,
future, vested,
contingent or defeasible
interest in such trust.
interest in such trust.
6. The transfer of life
insurance proceeds insuring the life of a
resident or nonresident decedent, paid or payable by reason of the death
of such decedent to a trustee or trustees of a trust created by such decedent
during his lifetime for the benefit of one or more beneficiaries irrespective
of whether such beneficiaries have a present, future, vested, contingent or
defeasible interest in such trust, is exempt from the New Jersey Inheritance
Tax.
insurance proceeds insuring the life of a
resident or nonresident decedent, paid or payable by reason of the death
of such decedent to a trustee or trustees of a trust created by such decedent
during his lifetime for the benefit of one or more beneficiaries irrespective
of whether such beneficiaries have a present, future, vested, contingent or
defeasible interest in such trust, is exempt from the New Jersey Inheritance
Tax.
7. The transfer,
relinquishment, surrender or exercise at any time or times by a resident or
nonresident of this State, of any right to nominate or change the beneficiary
or beneficiaries of any contract of insurance insuring the life of such
resident or nonresident, regardless of when such transfer, relinquishment,
surrender or exercise of such right occurred, is exempt from the tax.
relinquishment, surrender or exercise at any time or times by a resident or
nonresident of this State, of any right to nominate or change the beneficiary
or beneficiaries of any contract of insurance insuring the life of such
resident or nonresident, regardless of when such transfer, relinquishment,
surrender or exercise of such right occurred, is exempt from the tax.
8. Any amount recovered (under
the Federal Liability for Injuries to Employees Act) for injuries to a decedent
by the personal representative for the benefit of the classes of beneficiaries
designated in that Statute, whether for the pecuniary loss sustained by such
beneficiaries as a result of the wrongful death of the decedent or for the loss
and suffering by the decedent while he lived, or both is not subject to the
Inheritance Tax.
the Federal Liability for Injuries to Employees Act) for injuries to a decedent
by the personal representative for the benefit of the classes of beneficiaries
designated in that Statute, whether for the pecuniary loss sustained by such
beneficiaries as a result of the wrongful death of the decedent or for the loss
and suffering by the decedent while he lived, or both is not subject to the
Inheritance Tax.
Any amount recovered by the legal representatives of any
decedent by reason of any war risk insurance certificate or policy, either term
or converted, or any adjusted service certificate issued by the United States,
whether received directly from the United States or through any intervening
estate or estates, is exempt from the New Jersey Inheritance Tax.
decedent by reason of any war risk insurance certificate or policy, either term
or converted, or any adjusted service certificate issued by the United States,
whether received directly from the United States or through any intervening
estate or estates, is exempt from the New Jersey Inheritance Tax.
This exemption does not entitle any person to a refund of any
tax heretofore paid on the transfer of property of the nature aforementioned;
and does not extend to that part of the estate of any decedent composed of
property, when such property was received by the decedent before death.
tax heretofore paid on the transfer of property of the nature aforementioned;
and does not extend to that part of the estate of any decedent composed of
property, when such property was received by the decedent before death.
9. The proceeds of any pension,
annuity, retirement allowance, return of contributions or benefit payable by
the Government of the United States pursuant to the Civil Service Retirement
Act, Retired Serviceman’s Family Protection Plan and the Survivor Benefit Plan
to a beneficiary or beneficiaries other than the estate or the executor or
administrator of a decedent are exempt.
annuity, retirement allowance, return of contributions or benefit payable by
the Government of the United States pursuant to the Civil Service Retirement
Act, Retired Serviceman’s Family Protection Plan and the Survivor Benefit Plan
to a beneficiary or beneficiaries other than the estate or the executor or
administrator of a decedent are exempt.
10. All payments at death under
the Teachers Pension and Annuity Fund, the Public Employees’ Retirement System
for New Jersey , and the Police and Firemen’s Retirement System of New Jersey,
and such other State, county and municipal systems as may have a tax exemption
clause as broad as that of the three major State systems aforementioned,
whether such payments either before or after retirement are made on death to
the employee’s estate or to his specifically designated beneficiary, are exempt
from the New Jersey Inheritance Tax.
the Teachers Pension and Annuity Fund, the Public Employees’ Retirement System
for New Jersey , and the Police and Firemen’s Retirement System of New Jersey,
and such other State, county and municipal systems as may have a tax exemption
clause as broad as that of the three major State systems aforementioned,
whether such payments either before or after retirement are made on death to
the employee’s estate or to his specifically designated beneficiary, are exempt
from the New Jersey Inheritance Tax.
The
benefit payable under the supplementary annuity plan of the State of New Jersey
is not considered a benefit of the Public Employee’s Retirement System and is
taxable whether paid to a designated beneficiary or to the estate. The benefits
paid to decedent’s widow by the New Jersey State Firemen’s Association per
N.J.S.A. 43:17-35 and benefits paid to decedent’s widow by the New Jersey State
Judges Pension Act per N.J.S.A.. 2A:3-21.4 et seq. and 43:6 et seq. are exempt
from taxation.
benefit payable under the supplementary annuity plan of the State of New Jersey
is not considered a benefit of the Public Employee’s Retirement System and is
taxable whether paid to a designated beneficiary or to the estate. The benefits
paid to decedent’s widow by the New Jersey State Firemen’s Association per
N.J.S.A. 43:17-35 and benefits paid to decedent’s widow by the New Jersey State
Judges Pension Act per N.J.S.A.. 2A:3-21.4 et seq. and 43:6 et seq. are exempt
from taxation.
The death benefits paid by the Social Security Administration
or railroad Retirement Board to the spouse of a decedent are also exempt. For
purposes of filing a return these amounts need not be reported nor are they to
be deducted from the amount claimed as a deduction for funeral expenses. In all
other cases the death benefit involved should either be reported as an asset of
the estate or deducted from the amount claimed for funeral expenses.
or railroad Retirement Board to the spouse of a decedent are also exempt. For
purposes of filing a return these amounts need not be reported nor are they to
be deducted from the amount claimed as a deduction for funeral expenses. In all
other cases the death benefit involved should either be reported as an asset of
the estate or deducted from the amount claimed for funeral expenses.
11. Other pensions. An
exemption is provided for payments from any pension, annuity, retirement
allowance or return of contributions, which is a direct result of the
decedent’s employment under a qualified plan as defined by section 401(a), (b),
and (c) or 2039(c) of the Internal Revenue Code, which is payable to a
surviving spouse.
exemption is provided for payments from any pension, annuity, retirement
allowance or return of contributions, which is a direct result of the
decedent’s employment under a qualified plan as defined by section 401(a), (b),
and (c) or 2039(c) of the Internal Revenue Code, which is payable to a
surviving spouse.
12. The amount payable by
reason of medical expenses incurred as a result of personal injury to the
decedent should be reflected by reducing the amount claimed for medical
expenses as a result of the accident.
reason of medical expenses incurred as a result of personal injury to the
decedent should be reflected by reducing the amount claimed for medical
expenses as a result of the accident.
The amount payable at the death of an income producer as a
result of injuries sustained in an accident, which are paid to the estate of
the income producer, is reportable for taxation. In all other instances this
amount is exempt.
result of injuries sustained in an accident, which are paid to the estate of
the income producer, is reportable for taxation. In all other instances this
amount is exempt.
The amount paid at death to any person under the essential
services benefits section is exempt from taxation. The claim for funeral
expense is to be reduced by the amount paid under the funeral expenses benefits
section of the law.
services benefits section is exempt from taxation. The claim for funeral
expense is to be reduced by the amount paid under the funeral expenses benefits
section of the law.
SAFE DEPOSIT BOXES
Safe deposit boxes are no longer inventoried by the New Jersey
Division of Taxation. On September 30, 1992, the Division issued a blanket
release in the form of a letter from the Director, Division of Taxation, to all
banking institutions, safe deposit companies, trust companies, and other
institutions which serve as custodians of safe deposit boxes. The contents of
the boxes may be released without inspection by the Division.
Division of Taxation. On September 30, 1992, the Division issued a blanket
release in the form of a letter from the Director, Division of Taxation, to all
banking institutions, safe deposit companies, trust companies, and other
institutions which serve as custodians of safe deposit boxes. The contents of
the boxes may be released without inspection by the Division.
WHERE TO FILE
All returns except the L-8 are to be filed with the New Jersey
Division of Taxation, Individual Tax Audit Branch, Transfer Inheritance and
Estate Tax, 50 Barrack Street, PO Box 249, Trenton, New Jersey 08695-0249.
Division of Taxation, Individual Tax Audit Branch, Transfer Inheritance and
Estate Tax, 50 Barrack Street, PO Box 249, Trenton, New Jersey 08695-0249.
WHEN TAX RETURNS ARE DUE
A Transfer Inheritance Tax Return must be filed and the tax
paid on the transfer of real and personal property within eight months after
the death of either:
paid on the transfer of real and personal property within eight months after
the death of either:
A RESIDENT decedent for the
transfer of real or tangible personal property located in New Jersey or
intangible personal property wherever situated, or
transfer of real or tangible personal property located in New Jersey or
intangible personal property wherever situated, or
A NONRESIDENT decedent for the
transfer of real or tangible personal property located in New Jersey. No tax is
imposed on nonresident decedents for real property located outside of New
Jersey and intangible personal property wherever situated.
transfer of real or tangible personal property located in New Jersey. No tax is
imposed on nonresident decedents for real property located outside of New
Jersey and intangible personal property wherever situated.
The return must be filed whenever any tax is due or a waiver
is needed. The tax is a lien on all property for fifteen years unless paid
sooner or secured by an acceptable bond. Interest accrues on unpaid taxes at
the rate of 10% per annum.
is needed. The tax is a lien on all property for fifteen years unless paid
sooner or secured by an acceptable bond. Interest accrues on unpaid taxes at
the rate of 10% per annum.
For EXEMPTIONS see the heading
“EXCEPTIONS” below.
“EXCEPTIONS” below.
________
IMPORTANT REMINDERS
• If the decedent died TESTATE
you must supply a legible copy of the LAST WILL AND TESTAMENT, all CODICILS
thereto and any SEPARATE WRITINGS.
you must supply a legible copy of the LAST WILL AND TESTAMENT, all CODICILS
thereto and any SEPARATE WRITINGS.
• A copy of the decedent’s last
full year’s FEDERAL INCOME TAX RETURN is required.
full year’s FEDERAL INCOME TAX RETURN is required.
• All returns, forms and
correspondence must contain the decedent’s SOCIAL SECURITY NUMBER.
correspondence must contain the decedent’s SOCIAL SECURITY NUMBER.
• PAYMENTS ON ACCOUNT may be
made to avoid the accrual of interest. (Form IT-EP)
made to avoid the accrual of interest. (Form IT-EP)
• If PAYMENTS are not made by
CERTIFIED CHECK the issuance of waivers may be delayed.
CERTIFIED CHECK the issuance of waivers may be delayed.
• All CHECKS should be made
payable to N.J. INHERITANCE TAX and sent to the New Jersey Division of
Taxation, Individual Tax Audit Branch, Transfer Inheritance and Estate Tax, 50
Barrack Street, PO Box 249, Trenton, NJ 08695-0249.
payable to N.J. INHERITANCE TAX and sent to the New Jersey Division of
Taxation, Individual Tax Audit Branch, Transfer Inheritance and Estate Tax, 50
Barrack Street, PO Box 249, Trenton, NJ 08695-0249.
AMENDMENTS TO AN ORIGINAL
RETURN
RETURN
In the case of both resident and non-resident estates, any
assets and/or liabilities not disclosed in the original return and all
supplemental data requested by the Division is to be filed in affidavit form
and attested to by the duly authorized statutory representative of the estate,
next of kin, or beneficiary certifying in detail a description of the asset,
real or personal and/or the liability and the reasons for failure to disclose
same in the original return and filed directly with the NJ Transfer
Inheritance.
assets and/or liabilities not disclosed in the original return and all
supplemental data requested by the Division is to be filed in affidavit form
and attested to by the duly authorized statutory representative of the estate,
next of kin, or beneficiary certifying in detail a description of the asset,
real or personal and/or the liability and the reasons for failure to disclose
same in the original return and filed directly with the NJ Transfer
Inheritance.
ESTATE TAX
In addition to the inheritance tax, the State of New
Jersey imposes an estate tax on the
estate of certain resident decedents.
The estate tax is designed to absorb any portion of the credit allowable
for State death taxes under the federal estate tax law that is not fully taken
up by the aggregate amount of all death taxes paid to any State, United States
territory or the District of Columbia. The tax is the difference, if any,
determined by subtracting the amount of the inheritance, legacy and succession
taxes paid to this State and elsewhere from the allowable credit. Even estates
that are partially or fully exempt from the inheritance tax may be subject to
the New Jersey State Tax.
Jersey imposes an estate tax on the
estate of certain resident decedents.
The estate tax is designed to absorb any portion of the credit allowable
for State death taxes under the federal estate tax law that is not fully taken
up by the aggregate amount of all death taxes paid to any State, United States
territory or the District of Columbia. The tax is the difference, if any,
determined by subtracting the amount of the inheritance, legacy and succession
taxes paid to this State and elsewhere from the allowable credit. Even estates
that are partially or fully exempt from the inheritance tax may be subject to
the New Jersey State Tax.
The New Jersey Estate Tax obligation is in no way
discretionary on the part of the taxpayer. It MAY NOT be satisfied by payment
of the appropriate amount to the Federal Government in lieu of claiming the
credit allowable for Federal Estate Tax purposes.
discretionary on the part of the taxpayer. It MAY NOT be satisfied by payment
of the appropriate amount to the Federal Government in lieu of claiming the
credit allowable for Federal Estate Tax purposes.
The law requires that a copy of the Federal Estate Tax return
be filed with the Division within thirty days after the filing of the original with the Federal Government. Also,
the Division must be supplied with copies of all communications from the
Federal Government making final changes
or confirming, increasing or decreasing the tax shown to be due. More info at
http://www.njlaws.com/inheritance_tax.html
be filed with the Division within thirty days after the filing of the original with the Federal Government. Also,
the Division must be supplied with copies of all communications from the
Federal Government making final changes
or confirming, increasing or decreasing the tax shown to be due. More info at
http://www.njlaws.com/inheritance_tax.html
WAIVERS
Bank accounts, certificates of deposit etc., in the name of,
or belonging to a RESIDENT decedent, in financial institutions located in this
state, cannot be transferred without the written consent of the Division of
Taxation. This consent is referred to as a WAIVER.
or belonging to a RESIDENT decedent, in financial institutions located in this
state, cannot be transferred without the written consent of the Division of
Taxation. This consent is referred to as a WAIVER.
Stocks and bonds etc., in the name of, or belonging to a
RESIDENT decedent, of corporations organized under the laws of this state are
subject to the same waiver requirements. Real property, located in New Jersey,
in the name of, or belonging to a RESIDENT or a NON-RESIDENT decedent is
subject to the same waiver requirements, however, real property held by a
husband and wife as “tenants by the entirety” in the estate of the spouse dying
first need not be reported, regardless of the date of death and waivers are not
required.
RESIDENT decedent, of corporations organized under the laws of this state are
subject to the same waiver requirements. Real property, located in New Jersey,
in the name of, or belonging to a RESIDENT or a NON-RESIDENT decedent is
subject to the same waiver requirements, however, real property held by a
husband and wife as “tenants by the entirety” in the estate of the spouse dying
first need not be reported, regardless of the date of death and waivers are not
required.
A membership certificate or stock in a cooperative housing
corporation held in the name of the decedent and a surviving spouse as joint
tenants with the right of survivorship is exempt on or after May 6, 1980, if it
was their principal residence. However a waiver is required for this transfer
in the estate of a RESIDENT decedent. Waivers are not required for automobiles,
household goods, personal effects, accrued wages or mortgages, but these items
must be reported in the return filed.
corporation held in the name of the decedent and a surviving spouse as joint
tenants with the right of survivorship is exempt on or after May 6, 1980, if it
was their principal residence. However a waiver is required for this transfer
in the estate of a RESIDENT decedent. Waivers are not required for automobiles,
household goods, personal effects, accrued wages or mortgages, but these items
must be reported in the return filed.
EXCEPTIONS
Notwithstanding the waiver provisions above any financial
institution may release up to 50% of any bank account, certificate of deposit
etc. to the survivor, in the case of a joint account, the executor,
administrator or other legal representative of a RESIDENT decedent’s estate.
This procedure is referred to as a BLANKET WAIVER. This procedure is not
available for the transfer of stocks and bonds. For a detailed explanation see
N.J.A.C. 18:26-11.16.
institution may release up to 50% of any bank account, certificate of deposit
etc. to the survivor, in the case of a joint account, the executor,
administrator or other legal representative of a RESIDENT decedent’s estate.
This procedure is referred to as a BLANKET WAIVER. This procedure is not
available for the transfer of stocks and bonds. For a detailed explanation see
N.J.A.C. 18:26-11.16.
A SELF EXECUTING WAIVER, FORM L-8, has been created for Class
“A” beneficiaries in the estates of RESIDENT decedents. This form may be used
in two instances:
“A” beneficiaries in the estates of RESIDENT decedents. This form may be used
in two instances:
1. Transfers to a surviving
spouse in estates of decedents dying on or after January 1, 1985.
spouse in estates of decedents dying on or after January 1, 1985.
2. Transfers to a surviving
spouse or any other Class “A” beneficiary in estates of decedents dying on or
after July 1, 1988.
spouse or any other Class “A” beneficiary in estates of decedents dying on or
after July 1, 1988.
Use of this form MAY eliminate the need to file a formal
Inheritance Tax return. Your attention is directed to the instructions
contained in the body of the L-8, a copy of which is included in this booklet.
(Not included in IT-R Schedule Booklet.) This form is to be filed with the
financial institution which will then be authorized to release the subject
asset without the necessity of receiving a waiver from the Division. DO NOT
file this form with the Division.
Inheritance Tax return. Your attention is directed to the instructions
contained in the body of the L-8, a copy of which is included in this booklet.
(Not included in IT-R Schedule Booklet.) This form is to be filed with the
financial institution which will then be authorized to release the subject
asset without the necessity of receiving a waiver from the Division. DO NOT
file this form with the Division.
A REQUEST FOR A REAL PROPERTY
TAX WAIVER,
TAX WAIVER,
FORM L-9, has been created for Class “A” beneficiaries in the
estates of RESIDENT decedents. This form may be used in two instances:
estates of RESIDENT decedents. This form may be used in two instances:
1. Transfers to a surviving
spouse in estates of decedents dying on or after January 1, 1985 and the
decedent’s interest was in the decedent’s name alone.
spouse in estates of decedents dying on or after January 1, 1985 and the
decedent’s interest was in the decedent’s name alone.
2. Transfers to a surviving
spouse or any other Class “A” beneficiary in estates of decedents dying on or
after July 1, 1988 and the decedent’s interest in the real estate was in the
name of the decedent alone or with any other Class “A” beneficiary.
spouse or any other Class “A” beneficiary in estates of decedents dying on or
after July 1, 1988 and the decedent’s interest in the real estate was in the
name of the decedent alone or with any other Class “A” beneficiary.
Use of this form MAY eliminate the need to file a formal
Inheritance Tax Return. Your attention is directed to the instructions
contained in the body of the L-9, a copy of which is included in this booklet.
(Not included in IT-R Schedule Booklet.)
Inheritance Tax Return. Your attention is directed to the instructions
contained in the body of the L-9, a copy of which is included in this booklet.
(Not included in IT-R Schedule Booklet.)
This form is to be filed directly with the Branch. If the
form is in order the necessary
waiver/waivers will be promptly issued. NEITHER THE L-8 NOR THE L-9 may be used
where it is claimed that a relationship of mutually acknowledged child exists.
form is in order the necessary
waiver/waivers will be promptly issued. NEITHER THE L-8 NOR THE L-9 may be used
where it is claimed that a relationship of mutually acknowledged child exists.
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