reglab/statecodes huggingface dataset:
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 3C - ESTATE TAX-DECEDENTS DYING AFTER DECEMBER 31, 2017 › Section 18:26-3C.2 - Transfer of property requires waiver

Current through Register Vol. 56, No. 14, July 15, 2024
Although no estate tax is imposed upon the estate,
				  N.J.S.A.
				  54:38-6requires that property owned by the
				  decedent as of the date of the decedent's death may be transferred only with the
				  written consent of the Director. The Director requires that any such transfer comply
				  with the provisions of N.J.A.C. 18:26-11.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 4 - COMPROMISES (INHERITANCE AND ESTATE TAXES) › Section 18:26-4.1 - Domicile doubtful; terms of settlement

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Where
				the Director and taxing authorities in another jurisdiction claim that a decedent
				was domiciled in each respective state or jurisdiction at the time of a decedent's
				death and an investigation discloses a reasonable doubt regarding decedent's
				domicile, the Director may, in his or her discretion, enter into a written agreement
				with such other taxing authority and the executor, administrator, or trustee, to fix
				the sum acceptable to this State in full settlement of the New Jersey transfer
				inheritance tax; provided, that said agreement also fixes the sum acceptable to such
				other state or jurisdiction in full settlement of the death taxes imposable by said
				state or jurisdiction; and, provided further, that said agreement has the approval
				of the Superior Court or Tax Court of this State.
(b) Any agreement as to the decedent's domicile
				will provide that, if the aggregate amount payable under such agreement to all
				states or jurisdictions involved is less than the maximum sum allowable as a credit
				to the estate against the Federal estate tax imposed thereon, then the executor,
				administrator, or trustee must also pay to the Director so much of the difference
				between such aggregate amount and the amount of such credit as the amount payable to
				the Director under the agreement bears to such aggregate amount.
(c) Payment of the sum or sums fixed by said
				agreement will be accepted by the Director in full satisfaction of this State's
				claim for New Jersey transfer inheritance and estate tax that would otherwise be
				chargeable under the law.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 4 - COMPROMISES (INHERITANCE AND ESTATE TAXES) › Section 18:26-4.2 - Compromise and settlement of certain tax claims or liens; waiver of defenses

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Director may
				enter into an agreement with the executor, administrator, trustee, or beneficiary of
				any estate to alter, revise, compromise, and settle all claims or liens for past due
				transfer inheritance tax or estate or transfer taxes, together with all interest or
				interest penalties thereon, where:
1. Any lien or
				claim for any past due transfer inheritance tax or estate or transfer taxes are
				brought into question, claimed to be invalid or impaired, or are the subject of
				litigation; or
2. The Director, after
				investigation, determines that there is reasonable doubt as to the State's ability
				to enforce said lien or claim, or to collect the taxes due or claimed to be due, or
				that there is a reasonable doubt that said lien is valid or unimpaired.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 4 - COMPROMISES (INHERITANCE AND ESTATE TAXES) › Section 18:26-4.3 - Payment pursuant to compromise

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Any compromise or
				settlement is considered null and void unless the amount agreed to be paid is paid
				pursuant thereto within the time or times fixed in said agreement and in such event
				all payments made thereunder belongs to the State and will be credited to the
				arrears of taxes and interest or interest and penalties due. The person making
				payment is entitled to a receipt conforming to
				N.J.S.A.
				54:35-8, which may be recorded as allowed under
				N.J.S.A.
				54:35-9.
(b) If a judgment or decree has been entered in
				favor of the State of New Jersey for unpaid taxes, the Treasurer or Director, upon
				payment of the amount agreed upon or upon determination that the assessment be
				cancelled, will execute and record a satisfaction of the lien, claim, judgment, or
				decree in accordance with the facts.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.1 - Transfers generally

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Any transfers of property, real or personal,
				with a value of $ 500.00 or more, or any interest in a transfer or income from a
				transfer which interest or income is $ 500.00 or more in value, whether such
				transfer, interest, or income is held in trust or otherwise to or for the use of any
				transferee, distributee, or beneficiary, is subject to the transfer inheritance tax
				at the rates designated in
				N.J.A.C.
				18:26-2.3, 2.7, and 2.8.
(b) In any case where a transfer or any interest
				or income is less than $ 500.00 in value, the transfer, interest, or income is
				exempt from the tax; provided, however, if the transfer, interest or income is
				valued at $ 500.00 or more, then the entire transfer, interest, or income is subject
				to tax.
Example: Mr. X bequeaths his gold ring worth $ 250.00 to Ms. Y.
				  Since this is the only transfer made to Ms. Y, the transfer is not subject to tax.
				  If Mr. X had bequeathed not only the ring but a watch and chain worth $ 300.00, then
				  the transfer would be taxable and the tax would be based upon the entire amount,
				  that is, $ 550.00.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.2 - Transfers of residents and nonresidents

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Residents. Transfers
				by will or by the intestate laws of this State of real or tangible personal property
				situated in this State and intangible personal property, such as stock (including a
				share in a co-operative), bonds, securities, and mortgages, wherever located from
				the estate of a resident decedent who died seized or possessed of such property, are
				subject to the tax. Intangible personal property of a resident decedent is deemed
				situated in this State, regardless of where it is actually located, since by law
				personal property is deemed to follow the domicile of its owner.
(b) Nonresidents. In the case of a nonresident
				decedent, only real or tangible personal property located within this State of which
				the decedent was seized or possessed transferred by will or intestate law are
				subject to the tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.3 - Property includible in estate of decedent

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Moneys recovered
				under New Jersey Death Act (
				N.J.S.A. 2A:31-1et
				seq.). Any sum recovered under the New Jersey Death Act representing damages
				sustained by a decedent between the date of injury and date of decedent's 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.
1.
				Where an action is instituted under the New Jersey Death Act and terminates through
				settlement by a compromise payment without designating the amount to be paid under
				each count, the amount so recovered is first applied toward the payment of funeral
				expenses, the expenses of care, nursing, medical attendance, hospital, and other
				proper charges incident to the injury and is fully includible in the estate of the
				decedent.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.4 - Classification of property as real or personal

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The doctrine of
				equitable conversion is not applicable to estates of New Jersey decedents that
				involve real property situated in New Jersey for the purposes of the transfer
				inheritance tax.
(b) The doctrine of
				equitable conversion is not applicable to those estates where:
1. A New Jersey decedent was a party to a contract
				of sale involving real estate situated in a foreign jurisdiction.
Example 1. The interest of a deceased resident seller located in
				  another state, which was under contract of sale at the date of his or her death, is
				  deemed to be an interest in real property, the transfer of which is not subject to
				  tax under the inheritance tax laws of this State.
Example 2. The interest of a deceased resident buyer, under a
				  contract of sale in effect at the date of death for the purchase of real property
				  located in another state, is deemed personal property and taxable to the extent of
				  the sum paid on account of the contract price at the time of a decedent's death.
				  Pursuant to the provisions of
				  N.J.S.A.
				  54:34-5, the balance due under the contract will
				  not be allowed as a deduction in determining the clear market value of a decedent's
				  estate subject to tax under the inheritance tax laws of this State;
2. A nonresident decedent was involved
				as a party to a contract of sale involving real property situated in New Jersey.
Example 1. The interest of a deceased nonresident seller of real
				  property located in New Jersey, which was under contract of sale at the date of such
				  nonresident decedent's death, is deemed to be an interest in real property, the
				  transfer of which shall be taxable under the inheritance tax laws of this State. If
				  such nonresident dies intestate, the interest in the New Jersey real property is,
				  for the purposes of the inheritance tax laws of this State, deemed to have descended
				  under the intestate laws of this State to the decedent's heirs at law.
Example 2. The interest of a deceased nonresident buyer, under a
				  contract in effect at the date of death to purchase real property located in New
				  Jersey, is deemed personal property and is not subject to tax under the inheritance
				  tax laws of this State; and
3.
				N.J.A.C. 18:26-5.4are applicable regardless of whether a decedent died testate or
				intestate, or where real property is specifically devised but is under contract of
				sale at the date of death.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.5 - Devises in lieu of commissions

Current through Register Vol. 56, No. 14, July 15, 2024
In any case where a decedent appoints or names one or more
				  executors or trustees and makes a devise of property to such fiduciaries in the
				  decedent's will in lieu of commissions or allowances or appoints him, her, or them a
				  residuary legatee or legatees, the transfer to such fiduciary or fiduciaries of that
				  portion of the property in excess of the reasonable compensation fixed by the
				  Superior Court having jurisdiction in the matter, is subject to the New Jersey
				  transfer inheritance tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.6 - Inter vivos transfers

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Any transfer of real or tangible personal
				property located in this State or of intangible personal property wherever situated
				in the case of a resident decedent or of real or tangible personal property situated
				in this State in the case of a nonresident decedent made by such decedent during his
				or her lifetime, whether in contemplation of death or intended to take effect in
				possession or enjoyment at or after decedent's death, is subject to the New Jersey
				transfer inheritance tax. Any such transfers will be taxed upon the clear market
				value of the transferred property on the date of the decedent's death.
(b) In the case of a resident decedent, all
				intangible personal property is deemed to be situated in this State, even though it
				may be actually located anywhere outside the State.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.7 - Transfers made in contemplation of death

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Any transfer by
				deed, grant, bargain, sale, or gift made without adequate valuable consideration
				within three years ending with the date of death of the grantor, seller, or donor,
				in the absence of proof to the contrary, is deemed to have been made in
				contemplation of death. Any transfer made prior to such three-year period is not
				deemed to be in contemplation of death.
(b) "Contemplation of death" includes that
				expectancy of death that actuates the mind of a person of the execution of the will
				and is, therefore, not restricted to the expectancy of death that actuates the mind
				of a person making a gift causa mortis.
(c) "Adequate valuable consideration" means the
				clear market value of property in money or money's worth on the date of
				transfer.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.8 - Transfers taking effect in possession or enjoyment at or after death

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Any transfer of
				property by deed, grant, bargain, sale, or gift, or in trust (except in the case of
				a bona fide sale for an adequate valuable consideration in money or money's worth)
				is subject to the New Jersey transfer inheritance tax where made by a decedent
				transfer or during the decedent's lifetime, under which the decedent has retained
				for life or for any period not ascertainable without reference to the decedent's
				death, or for any period which does not in fact end before the decedent's death:
1. The possession or enjoyment of the property so
				that possession or enjoyment of the property can be obtained only by surviving the
				transferor; or
2. The right to income
				from the property.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.9 - Certain profit sharing and retirement plans

Current through Register Vol. 56, No. 14, July 15, 2024
The proceeds of a profit sharing or retirement plan payable at the
				  date of death of a decedent to a beneficiary named by the decedent or in accordance
				  with the preference schedule of beneficiaries is deemed to be a transfer that takes
				  effect at or after death and is as such subject to the tax, except for the exemption
				  provided by
				  N.J.S.A.
				  54:34-4.j.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.10 - Transfers not deemed to take effect at or after death

Current through Register Vol. 56, No. 14, July 15, 2024
Any transfer of property by deed, grant, bargain, sale, gift, or
				  interest under which the transferor is entitled to some income, right, interest, or
				  power including the possession or enjoyment of the property, either expressly or by
				  operation of law, is not deemed a transfer to take effect at or after the
				  transferor's death if the transferor at any time more than three years prior to
				  death completely and irrevocably disposes of all of his or her reserved income,
				  rights, interests, and powers in and over the transferred property, including any
				  right to possession, use, and enjoyment of the property.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.11 - Jointly held property

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Where, in the case of a resident decedent,
				real or tangible personal property situated in this State or intangible personal
				property wherever situated, or in the case of a nonresident decedent, real or
				tangible personal property located in this State, is held in the joint names of the
				decedent and one or more of such persons as joint tenants, the transfer of
				ownership, possession, and enjoyment of such property to a surviving joint tenant or
				tenants is a transfer subject to the New Jersey transfer inheritance tax.
(b) Such transfers are taxed in the same manner as
				if such property had belonged absolutely to the decedent joint tenant and had been
				devised or bequeathed by will to the surviving joint tenant or tenants. Only that
				part or interest in such property which the surviving joint tenant or tenants prove,
				to the satisfaction of the Director, to have originally belonged to the surviving
				joint tenant or tenants and not the decedent, is exempt from the tax.
(c) This section applies to property deposited in
				banks or other institutions or depositories in the joint names of two or more
				persons and payable to either or the survivor under NJ.S.A. 17:16I-5.
(d) This section applies only to property held by
				two or more persons as joint tenants, and not tenants by the entirety. For the rule
				applicable to property held by tenants by the entirety, see
				N.J.A.C.
				18:26-6.4.
(e) In the case of a nonresident decedent holding
				real property in this State as a joint tenant together with one or more other
				persons, the transfer of such property at death is deemed to pass to the surviving
				joint tenant or tenants as though specifically devised and as such is not subject to
				the ratio tax imposed upon the transfer of property of a nonresident under
				N.J.S.A.
				54:34-3.
(f) The right of a spouse/civil union partner or
				the right of a domestic partner as defined in
				N.J.S.A.
				26:8A-3, as a surviving joint tenant with his or
				her deceased spouse/civil union partner or domestic partner, to the immediate
				ownership or possession and enjoyment of a membership certificate or stock in a
				cooperative housing corporation, the ownership of which entitles such member or
				stockholder to occupy real estate for dwelling purposes as the principal residence
				of the decedent and spouse/civil union partner or domestic partner is exempt from
				the transfer inheritance tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.12 - Powers of appointment; estates in expectancy

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Transfers are
				subject to the New Jersey transfer inheritance tax, where, by transfer of a resident
				decedent of real or tangible personal property within this State or of intangible
				personal property wherever situated, or by transfer of a nonresident decedent of
				real or tangible personal property within this State, a transferee comes into the
				possession or enjoyment of:
1. An estate in
				expectancy of any kind or character that is contingent or defeasible, transferred by
				an instrument taking effect on or after July 4, 1909; or
2. Property transferred pursuant to a power of
				appointment contained in an instrument taking effect on or after July 4,
				1909;
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.13 - Insurance proceeds subject to New Jersey transfer inheritance tax

Current through Register Vol. 56, No. 14, July 15, 2024
Proceeds of any contract of insurance insuring the life of a
				  resident of this State paid or payable to the estate or the executor or
				  administrator of such decedent is subject to the New Jersey transfer inheritance
				  tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.14 - Proceeds payable to testamentary trustee

Current through Register Vol. 56, No. 14, July 15, 2024
Life insurance proceeds payable to a trustee or trustees of a
				  testamentary trust created under the will of a decedent are not subject to transfer
				  inheritance tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.15 - Proceeds under matured endowment policies

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In the case of a
				decedent who dies subsequent to the maturity of an endowment policy, the proceeds
				are taxable whether payable to a designated beneficiary or beneficiaries or to the
				estate of such decedent.
(b) Endowment
				policies that have all the attributes of life insurance policies prior to maturity
				are exempt if payable to a specific beneficiary and if the decedent died prior to
				maturity, but are taxable if payable to the estate for distribution by
				will.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.16 - Proceeds under claim settlement certificates and supplementary contracts

Current through Register Vol. 56, No. 14, July 15, 2024
Payments made under a claim settlement certificate or a
				  supplementary contract are subject to the New Jersey transfer inheritance tax,
				  except when they represent a continuation of payments made under an insurance policy
				  on the life of a prior decedent, which life insurance policy provided for such
				  payment at decedent insured's specific directions.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.17 - Proceeds of retirement contracts

Current through Register Vol. 56, No. 14, July 15, 2024
The proceeds of a retirement contract purchased on an installment
				  plan are subject to the New Jersey transfer inheritance tax when the decedent dies
				  prior to the date of retirement and the payments are returned to either his or her
				  estate or to a designated beneficiary, except for the exemption provided by
				  N.J.S.A.
				  54:34-4.j.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.18 - Proceeds of single premium life insurance with annuity contracts

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The proceeds of
				single premium life insurance contracts combining a life insurance feature and an
				annuity feature are subject to the New Jersey transfer inheritance tax.
(b) The proceeds of life insurance contracts
				combining a life insurance feature and an annuity feature are subject to the New
				Jersey transfer inheritance tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.19 - Annuity contracts

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Annuity contracts purchased by or vested in a
				decedent and made payable by him or her to another person at or after his or her
				death are subject to the New Jersey transfer inheritance tax.
(b) Annuities payable under certain trusts and
				plans that are exempt under Section 2039(c) of the Internal Revenue Code of 1954 may
				not be exempt for New Jersey transfer inheritance tax purposes. The treatment to be
				accorded payments made under such trusts and plans depends upon the facts and
				circumstances that exist in each case (See
				N.J.S.A.
				54:34-4.j).
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 5 - TRANSFERS SUBJECT TO TAX › Section 18:26-5.20 - Dividends and refunds on life insurance policies

Current through Register Vol. 56, No. 14, July 15, 2024
Dividend accumulations, post mortem dividends, terminal dividends,
				  and premium refunds on contracts of life insurance although payable at the same time
				  as the life insurance proceeds, are not considered part of the life insurance
				  proceeds of the policy and are taxable to the beneficiary as transfers taking effect
				  at or after the death of the insured.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.1 - Class "A" transfers

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Transfers to a spouse are exempt.
(b) Transfers to all Class "A" transferees are
				exempt, except that transfers to a domestic partner are only exempt where the
				decedent dies on or after July 10, 2004, and transfers to a civil union partner are
				only exempt where the decedent dies on or after February 19, 2007.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.2 - Class "C" transfers

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The transfer of property having an aggregate
				clear market value of $ 25,000 or less that is transferred to a brother or sister of
				decedent or to a spouse or surviving spouse of a child of a decedent is exempt from
				the New Jersey transfer inheritance tax.
(b) In instances where the decedent dies on or
				after February 19, 2007, the transfer of property having an aggregate clear market
				value of $ 25,000 or less, which is transferred to a civil union partner or
				surviving civil union partner of a child of a decedent is exempt from the New Jersey
				transfer inheritance tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.3 - Dower or curtesy

Current through Register Vol. 56, No. 14, July 15, 2024
In the case of a resident decedent dying on or after May 28, 1980,
				  there is no exemption for the interest of the spouse in real property by way of
				  dower or curtesy, unless both the real estate was purchased and the marriage took
				  place prior to May 28, 1980.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.4 - Tenancy by the entirety

Current through Register Vol. 56, No. 14, July 15, 2024
The transfer of real property or personal property in this State
				  held by spouses/civil union couple as tenants by the entirety to the surviving
				  spouse/civil union partner is not taxable for New Jersey transfer inheritance tax
				  purposes, see N.J.S.A. 46:3 -17.2, except that where words such as "husband and
				  wife" and "spouse/wife/husband" are used in the statute, the words "civil union
				  couple" and "civil union partner" shall be given the same treatment as the former
				  terms, respectively.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.5 - Intangible property of a nonresident

Current through Register Vol. 56, No. 14, July 15, 2024
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 transfer inheritance
				  tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.6 - Wrongful death action

Current through Register Vol. 56, No. 14, July 15, 2024
Any sum recovered under sections 1, 2, 3, and 4 of the New Jersey
				  Death Act (
				  N.J.S.A. 2A:31-1et
				  seq.) as compensation for the wrongful death of a decedent is not subject to the New
				  Jersey transfer inheritance tax, except as provided in
				  N.J.A.C.
				  18:26-5.3(a).
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.7 - Life insurance proceeds

Current through Register Vol. 56, No. 14, July 15, 2024
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 transfer inheritance tax
				  purposes.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.8 - Beneficiary of insurance trust

Current through Register Vol. 56, No. 14, July 15, 2024
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 trust by reason of the death of such decedent, is exempt from the New Jersey
				  transfer inheritance tax irrespective of whether such beneficiary or beneficiaries
				  have a present, future, vested, contingent, or defeasible interest in such
				  trust.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.9 - Trustee of insurance trust

Current through Register Vol. 56, No. 14, July 15, 2024
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 transfer inheritance
				  tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.10 - Surrender of right to change beneficiary of contract of insurance

Current through Register Vol. 56, No. 14, July 15, 2024
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.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.11 - Public educational, scientific, and charitable institutions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Property
				passing to or for the use of the State of New Jersey, or to or for the use of a
				municipal corporation within the State or other political subdivision thereof, for
				exclusively public purposes is exempt.
(b) Any property of any decedent that passes to a
				Class "E" transferee is exempt.
(c)
				Cemetery corporations are deemed to be charitable institutions within the meaning of
				the Act.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.12 - Property received from the Federal government

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Any amount
				recovered by a decedent's personal representative for the benefit of the classes of
				beneficiaries designated under the Federal Liability for Injuries to Employees Act
				for injuries to a decedent, 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 the decedent lived, or both, is not subject to the
				New Jersey transfer inheritance tax.
(b)
				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 transfer inheritance tax.
(c) The
				exemption under this section does not entitle any person to a refund of any tax
				heretofore paid on the transfer of property of the nature mentioned in this section;
				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.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.13 - Federal pensions

Current through Register Vol. 56, No. 14, July 15, 2024
The proceeds of any pension, annuity, retirement allowance, return
				  of contributions, or benefit payable by 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 from the New Jersey transfer
				  inheritance tax. All other pensions, annuities, retirement allowances, or returns of
				  contributions payable by the United States to a beneficiary are not exempt under
				  this provision.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.14 - State pensions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) All payments at death under the Teachers'
				Pension and Annuity Fund, the Public Employees' Retirement System of 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 addressed in this section, whether such payments
				either before or after retirement are made on death to the employee's estate or to
				his or her specifically designated beneficiary, are exempt from the New Jersey
				transfer inheritance tax.
(b) All other
				benefit plans that do not have an exemption clause as broad as those under (a)
				above, such as, but not limited to, TIAA-CREF, are not exempt.
(c) The benefit payable under the supplementary
				annuity plan of the State of New Jersey is not considered a benefit of the Public
				Employees' Retirement System and is taxable whether paid to a designated beneficiary
				or to the estate.
(d) The death benefits
				paid by the Social Security Administration or Railroad Retirement Board to the
				spouse of a decedent are also exempt from the New Jersey transfer inheritance tax.
				For purposes of filing a return these amounts neither need to 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.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.15 - No fault insurance

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The insurance proceeds received by reason of
				medical expenses incurred as a result of personal injury to the decedent should be
				included in any calculations for purposes of the New Jersey transfer inheritance
				tax, so as to offset the amount claimed for medical expenses as a result of the
				accident.
(b) The insurance proceeds
				payable at the death of an income producer, defined by
				N.J.S.A. 39:6A-2.d, as a
				result of injuries sustained in an accident, which are paid to the estate of the
				income producer, are subject to the New Jersey transfer inheritance tax. In all
				other instances this amount is exempt.
(c) The amount paid at death to any person under
				the essential services benefits section of personal injury protection coverage as
				defined by
				N.J.S.A.
				39:6A-4.c is exempt from taxation.
(d) The claim for funeral expenses is to be
				reduced by the amount paid under the funeral expenses benefits section of personal
				injury protection coverage as defined by
				N.J.S.A.
				39:6A-4.e.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.16 - Other pensions

Current through Register Vol. 56, No. 14, July 15, 2024
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/surviving civil union partner as defined in
				  P.L.
				  2006, c. 103 or a surviving
				  domestic partner as defined in
				  section
				  3 of
				  P.L.
				  2003, c. 246 (26:8A-3 ).
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 6 - EXEMPTIONS › Section 18:26-6.17 - No fault insurance

Current through Register Vol. 56, No. 14, July 15, 2024
(a) 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.
(b) 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.
(c) The amount paid at death to any person under
				the essential services benefits section is exempt from taxation.
(d) The claim for funeral expense is to be reduced
				by the amount paid under the funeral expenses benefits section of the law.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.1 - Deductions generally permitted

Current through Register Vol. 56, No. 14, July 15, 2024
The New Jersey transfer inheritance tax is imposed upon the
				  transfer of property based upon the clear market value of such property. The "clear
				  market value" of property means the market value of the property less the debts,
				  expenses, and taxes that constitute an encumbrance upon the property of a decedent.
				  No deductions are allowed, however, against any property that is exempt or not
				  subject to the New Jersey transfer inheritance tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.2 - Decedent's debts

Current through Register Vol. 56, No. 14, July 15, 2024
All debts owing at the date of a decedent's death are deductible
				  from the property comprising such decedent's estate unless the property for which
				  the debt is owing or for which it is secured is not subject to the New Jersey
				  transfer inheritance tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.3 - Debts secured by out-of-State real property

Current through Register Vol. 56, No. 14, July 15, 2024
The debts of a resident decedent owing for or secured by real
				  property outside this State are not allowed as a deduction, unless such debt exceeds
				  the value of the property securing it or for which it was contracted, in which event
				  only that amount by which such debt exceeds the value of the out-of-State realty is
				  permitted as a deduction.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.4 - Mortgages

Current through Register Vol. 56, No. 14, July 15, 2024
The balance of a mortgage owing on the date of death is allowed as
				  a deduction from the value of any real property securing such mortgage. In the case
				  of real property held by a decedent and a surviving spouse/civil union partner as
				  tenants by the entirety, the amount of any mortgage owing on such real property at
				  the decedent's death is not allowable as a deduction since such property is exempt
				  from the New Jersey transfer inheritance tax.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.5 - Debts secured by life insurance

Current through Register Vol. 56, No. 14, July 15, 2024
Any debt of a decedent owing at the date of death and covered by
				  the purchase of life insurance payable to a creditor of the decedent, in order to
				  liquidate a debt arising from the acquisition of property for which the decedent was
				  liable to such creditor, is not allowed as a deduction, because the debt is regarded
				  as extinguished at the date of death by payment to said creditor of the insurance
				  proceeds and, therefore, the decedent's estate is not diminished by the amount of
				  the debt.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.6 - Debt for claim of county welfare boards or State institutions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A deduction
				is allowed in the case of a claim by a county welfare board or a State institution
				for money advanced to or on account of the care provided to a decedent as an
				indigent person, provided that such claim is accompanied by the following documents:
1. A letter signed by a representative of the
				welfare board or State institution stating the exact amount due from the decedent as
				of the date of death;
2. A supplemental
				affidavit of the executor, heir, or administrator, as the case may be, stating
				whether or not he or she acknowledges the correctness of the amount of the claim and
				will pay the same in full out of the assets of the estate. If not, the supplemental
				affidavit should set forth the facts involved, and if the matter has been settled,
				set forth the amount that has been paid or will be paid in settlement.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.7 - Estates subject to escheat

Current through Register Vol. 56, No. 14, July 15, 2024
Estates subject to escheat that contain claims for services
				  rendered to the decedent or advances made to the decedent are held in abeyance
				  pending a final determination made with respect thereto by the Attorney General's
				  Office, Unclaimed Property Section. The representatives of the estate will be so
				  notified.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.8 - Funeral and last illness expenses

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A deduction is
				allowed for all reasonable funeral expenses and last illness expenses uncompensated
				for by insurance or otherwise, owing and unpaid at the decedent's death for which
				the decedent's estate is liable.
(b)
				Funeral expenses include any reasonable costs incurred on behalf of the decedent
				payable by the estate:
1. Any deduction for
				funeral expenses is to be reduced by the amount of any death benefit paid or payable
				under the Social Security or Railroad Retirement Acts of the United States where the
				same are paid or payable to any person or fiduciary other than the spouse of the
				decedent;
2. What constitutes a
				reasonable funeral cost or expense will depend upon the facts and circumstances in
				each case; however, primary consideration will be given to the size of the estate in
				relation to the amount claimed as a deduction for such expenses.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.9 - Administration expenses

Current through Register Vol. 56, No. 14, July 15, 2024
A deduction is allowed for all the reasonable and ordinary
				  expenses of administering a decedent's estate including reasonable and ordinary fees
				  for executors, administrators, and attorneys, and, in addition, the reasonable cost
				  incurred on an appeal from a determination of the Transfer Inheritance Tax
				  Branch.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.10 - Executor's and administrator's expenses

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In the absence of a
				judgment of the court exercising jurisdiction over the probate of an estate, the
				deduction for executor or administrator commissions is determined in accordance with
				N.J.S.A. 3B:18-14as
				of the date of death of decedent as follows:
First $ 200,000 of corpus -- 5 percent
Next $ 800,000 of corpus -- 3 1/2 percent
Excess over $ 1,000,000 of corpus -- 2 percent
If more than one executor or administrator has been appointed,
				  each additional executor or administrator may take an additional one percent of all
				  corpus provided that no one executor or administrator shall be entitled to any
				  greater commission than that which would be allowed if there were but one executor
				  or administrator.
1. Where the amount
				claimed by the executor or administrator or allowed by the court is less than that
				determined by the application of the rates set forth in (a) above, only such amount
				as claimed or allowed shall be permitted as a deduction.