reglab/statecodes huggingface dataset:
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.11 - Counsel fees

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A deduction for counsel fees is allowed if
				such fees are reasonable. The appraised value of a decedent's estate, for New Jersey
				transfer inheritance tax and Federal estate tax purposes will not be considered as a
				criterion for the determination of the amount allowable as a deduction for counsel
				fees.
(b) No deduction is allowed for
				counsel fees paid to an attorney who is not a member of the Bar of the State of New
				Jersey, except in cases where the services rendered by such counsel relate to
				matters not involving the New Jersey transfer inheritance tax proceedings.
(c) At the discretion of the Director, counsel may
				be required to submit an affidavit of services provided for the personal
				representative of an estate where it appears that the amount claimed as a deduction
				for counsel fees is other than ordinary or reasonable.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.12 - Real estate broker commissions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A deduction is
				allowed for commissions paid or payable to a real estate broker or agent in
				connection with the sale of real estate of which a decedent dies seized, so long as:
1. The real estate was the subject of a contract
				of sale entered into by the decedent during his or her lifetime;
2. The real estate is actually sold by the
				executor or administrator (the real estate must be sold by the representative of an
				estate and not the beneficiary or beneficiaries in order to qualify); or
3. It is necessary in the administration of the
				decedent's estate to affect a sale of said real estate for the purpose of
				liquidating debts, or the payment of the expenses of administration of the estate,
				or for the payment of legacies.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.13 - Storage expense

Current through Register Vol. 56, No. 14, July 15, 2024
(a) No deduction is allowed for expenses incurred
				by an executor or administrator for the storage or preservation of tangible personal
				property, except where the nature of the property or the value thereof is such that
				delivery to the legatee thereof is not possible within a reasonable time subsequent
				to a decedent's death.
(b) No deduction
				is allowed for expenses incurred for the preservation, maintenance, or upkeep of
				real property of which a decedent dies seized, either individually, jointly, or as a
				tenant in common.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.14 - Operating costs of business

Current through Register Vol. 56, No. 14, July 15, 2024
No deduction is allowed for the cost of operating a business in
				  which the decedent had an interest at death. These expenses are not deemed an
				  ordinary expense of administration and should be charged as an expense of the
				  business.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.15 - State, county, and local taxes

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A deduction is
				allowed for any State, county, and municipal taxes owing and unpaid at the date of
				death on any real property of a decedent that is subject to the New Jersey transfer
				inheritance tax. The amount of the deduction on such property for the current fiscal
				year, however, is limited to that sum representing unpaid taxes as the elapsed
				portion of said year bears to the full year. No deduction is allowed for State,
				county, or municipal taxes assessed or accruing subsequent to the death of the
				decedent.
(b) No deduction for unpaid
				State, county, and municipal taxes is allowed where the real property owned by the
				decedent was held by such decedent and a surviving spouse/civil union partner as
				tenants by the entirety, unless it can be shown that during the decedent's lifetime,
				the decedent appropriated all of the income from such property without having paid
				any of the State, county, and municipal taxes and other charges assessed against the
				real property.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.16 - Transfer taxes due to other jurisdictions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A deduction is
				allowed for any transfer, succession, or legacy taxes paid or payable to any state
				or territory of the United States, including the District of Columbia or any foreign
				country provided the property upon which such tax is paid or payable is subject to
				the New Jersey transfer inheritance tax.
(b) The amount due or paid to the United States as
				a Federal estate tax is not allowed as a deduction.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 7 - DEDUCTION › Section 18:26-7.17 - Loans secured by life insurance policies

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A deduction is not
				allowed for a loan by an insurance company made to a decedent as the insured against
				a life insurance policy, because it is not considered a debt of the decedent but
				rather an advancement of the cash value of the policy.
(b) A deduction is not allowed for a loan made by
				a third party to a decedent secured by the assignment of a life insurance policy on
				the life of the decedent and satisfied from the proceeds of the policy. However, the
				right of a beneficiary to reimbursement from the estate for the amount of the loan
				is a proper claim by way of subrogation against the decedent's estate and is an
				allowable deduction unless a contrary intention is indicated.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.1 - Appointment of appraisers

Current through Register Vol. 56, No. 14, July 15, 2024
(a) All appraisals of
				real and tangible personal property are made by a Division of Taxation
				representative exercising jurisdiction where the decedent is a resident or
				nonresident.
(b) The appraisal of all
				intangible personal property is made by an auditor at the Transfer Inheritance Tax
				Branch.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.2 - Notice of appraisal; evidence; report

Current through Register Vol. 56, No. 14, July 15, 2024
(a) An auditor, when it
				is deemed necessary, may give notice by mail to any person having knowledge of the
				assets of any estate, indicating the time and place an appraisal of property is to
				be made, requesting the presence of such person if necessary as a witness to give
				evidence under oath concerning property and the value thereof
(b) The auditor, should the witness fail or refuse
				to attend, may issue a subpoena to compel the attendance of a witness.
(c) If an estate has filed a Federal estate tax
				return, for which a formal appraisal of any nature is required, an auditor may
				request that a copy of such appraisal be submitted for New Jersey transfer
				inheritance tax purpose.
(d) Upon
				completion of the examination for any property and attainment of any information
				solicited from witnesses, the appraiser is required to make a report and file the
				same with the Transfer Inheritance Tax Branch.
(e) These powers are in addition to or supplement
				the power of the Director to examine records, conduct hearings, issue subpoenas, and
				compel witnesses to attend hearings and produce records as provided in
				N.J.A.C.
				18:26-12.4, 12.5, 12.6, and 12.7.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.3 - Additional assessment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In the absence of fraud or clerical error,
				after a final determination and assessment has been made and a notice thereof has
				been sent to the representative(s) of the estate, the Director will not reverse a
				determination or reopen an assessment. This, however, does not bar an additional or
				corrected assessment being made upon the discovery of assets or liabilities after an
				original report has been filed and the taxes assessed thereon have been
				paid.
(b) Where an asset is the subject
				of litigation at the time of a decedent's death, the appraisal of such an asset is
				suspended until the suit is terminated.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.4 - Final assessment

Current through Register Vol. 56, No. 14, July 15, 2024
Subsequent to receipt of the return and payment of any applicable
				  tax, the Transfer Inheritance Tax Branch will advise the estate representative(s) as
				  to whether the return filed by the estate and the tax calculation contained therein
				  are accepted, in which case the Branch's notification will be the assessment. In the
				  event that the Branch decides to examine the return further, the Branch will
				  subsequently notify the estate representative as to the amount of tax
				  assessed.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.5 - Assessment notices

Current through Register Vol. 56, No. 14, July 15, 2024
Any assessment notice, regardless of any changes to the tax as
				  reported by the taxpayer, will conform to the requirements of
				  N.J.S.A.
				  54:50-6.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.6 - Time limit for assessment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Upon the expiration
				of a period of 15 years after the date of death of a decedent, no proceeding may be
				instituted to assess or collect any tax, interest, or penalties due to this State
				for transfer inheritance tax purposes against any estate, executor, administrator,
				trustee, grantee, donee, buyer, devisee, legatee, heir, next of kin, or beneficiary.
				However, this subsection does not affect any rights to collection which this State
				has by reason of filing with the Clerk of the Superior Court, a Certificate of Debt
				or Decree of Judgment for the New Jersey transfer inheritance tax, including any
				interest and penalties; nor does the period of limitation affect the rights of this
				State to assess and collect the New Jersey transfer inheritance tax including any
				interest and penalties under the terms of a bond or agreement securing the payment
				of such tax, interest, and penalties.
(b) No assessment of additional transfer
				inheritance tax can be made after the expiration of more than four years from the
				date of the filing of an inheritance tax return, except in the following cases:
1. As allowed by the New Jersey State Uniform Tax
				Procedure Law,
				N.J.S.A.
				54:49-6.b;
2. Tax on executory devises, contingent future
				interests, and estates subject to a power of appointment is assessed pursuant to the
				provisions of NJ.A.C. 18:26-8.12, 8.21, 8.24, and 9.16;
3. If the inheritance tax return is amended by the
				taxpayer to include additional property of a decedent, the assessment of tax on the
				additional property cannot be made after four years from the date of the filing of
				the amended return;
4. The assessment of
				tax on an estate passing to a beneficiary discovered after the filing of an
				inheritance tax return cannot be made after four years from the date of the
				discovery of the beneficiary and receipt of notification thereof by the Division;
				or
5. If a decedent's interest in
				property, or the value thereof as of the decedent's date of death, has not been
				determined at the time of the filing of an inheritance tax return due to litigation
				or controversy, the assessment of tax must be made within four years after the
				decedent's interest in the property, or the value thereof on the decedent's date of
				death, has been definitely established and the Division receives notification
				thereof
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.7 - Appeals from assessment

Current through Register Vol. 56, No. 14, July 15, 2024
Any interested person dissatisfied with an appraisement or
				  assessment made by the Transfer Inheritance Tax Branch may, before appealing to the
				  Tax Court in accordance with
				  N.J.A.C.
				  18:26-12.12, submit a written protest to the
				  Branch in accordance with
				  N.J.A.C.
				  18:26-12.9. Executors, administrators, trustees,
				  or other interested parties may also avail themselves of an informal hearing as
				  provided under N.J.A.C. 18:26-12.10.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.8 - Valuations generally

Current through Register Vol. 56, No. 14, July 15, 2024
(a) All property -- real, personal, tangible, or
				intangible -- subject to the New Jersey transfer inheritance tax is appraised
				according to its clear market value on the date of decedent's death.
(b) In the Director's judgment and discretion, the
				Director may require that the appraisal of any tangible assets subject to the
				transfer inheritance tax or estate tax, be supported by an appraisal made by a
				broker, dealer, jobber, or any other person having expert knowledge with respect to
				the market value of any such tangible property.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.9 - Fractional interest in real property

Current through Register Vol. 56, No. 14, July 15, 2024
In cases where a discounted fractional interest in real property
				  is claimed by an estate, the Division will make a determination as to whether a
				  discount in value is warranted, and, if so, the amount of the discount to be
				  allowed.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.10 - Life estate in real property held by the entirety

Current through Register Vol. 56, No. 14, July 15, 2024
(a) When real property
				is devised or transferred to spouses/civil union couple/domestic partners as tenants
				by the entirety each having a vested life estate in common with the other for their
				joint lives with a vested estate in fee in the entire remainder subject to
				defeasance, as to the one first dying, the value of such property for New Jersey
				transfer inheritance tax purposes, is ascertained as follows:
1. A life estate is computed on the basis of the
				lesser life expectancy of the devisees or grantees and the value so determined is
				considered as immediately vested in equal shares, and subject to tax
				accordingly.
2. The remainder is treated
				as contingent and a compromise tax is suggested in accordance with
				N.J.S.A.
				54:36-6, based upon the following alternatives:
i. The tax chargeable if the devisee or grantee
				against whom the lower rate of tax would apply survives;
ii. The tax chargeable if the devisee or grantee
				against whom the higher rate of tax would apply survives; or
iii. The tax chargeable determined on the basis
				that the devisees or grantees will share the remainder equally as the result of a
				sale of the real property or the entry of a judgment of divorce.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.11 - Bonds and mortgages

Current through Register Vol. 56, No. 14, July 15, 2024
The face value or balance due of a bond and mortgage held as an
				  investment, as of the date of death, plus any accrued interest as of such date, is
				  presumed to be the correct value unless conclusive proof to the contrary is
				  submitted that clearly indicates a different value as of the date of
				  death.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.12 - Partnerships

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In the case of a decedent who was a member of
				one or more partnerships, the partnership interest of such decedent is given a value
				as of the date of death, based upon the following information, which is to be
				submitted with the return:
1. A detailed balance
				sheet, revised to reflect the market value of the assets as distinguished from the
				net book value, as of the date of death of the decedent, or as near thereto as may
				be deemed acceptable;
2. Detailed
				balance sheets (setting forth the partner's capital accounts) and establishing the
				net worth of the partnership for each of the three years preceding the date of death
				of the decedent;
3. Detailed profit and
				loss statements for the three years immediately preceding the date of death of the
				decedent;
4. A copy of a partnership
				agreement if any;
5. The nature of the
				business in which the partnership is engaged;
6. A copy or copies if any, of a mutual purchase
				agreement to which the decedent was a party at the time of his or her death;
				and
7. A copy or copies, of any
				insurance policies, on the life of the decedent, held by the surviving partners as
				beneficiaries.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.13 - "Close" or "family" corporation

Current through Register Vol. 56, No. 14, July 15, 2024
(a) To the extent that
				the valuation of stock of a "close" or "family" corporation is generally incapable
				of being appraised on the basis of arms-length sales of stock, the Director will
				base the value of such corporation on the following data to be submitted with the
				return:
1. The basis of the clear market value
				reported in the return;
2. A detailed
				balance sheet and profit and loss statement, revised to reflect the market value of
				the assets thereof as distinguished from the net book value, as of the date of death
				of the decedent, or as near thereto as the Director may deem acceptable;
3. Detailed balance sheets establishing the net
				worth of the corporation for each of the three years preceding the date of death of
				the decedent;
4. Detailed profit and
				loss statements for the three years immediately preceding the date of the death of
				the decedent;
5. A copy or copies of any
				stock purchase or option agreement to which the decedent was a party at the time of
				his or her death;
6. A copy or copies of
				any insurance policies, if any, held by the corporation as beneficiary on the life
				of the decedent. The proceeds of such insurance are included as an asset of the
				corporation on the date of death in arriving at the value of the stock;
				and
7. If corporation owned realty,
				description of same, assessed and market value thereof should be shown.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.14 - Assets of close corporation or partnership of known market value

Current through Register Vol. 56, No. 14, July 15, 2024
(a) When determining
				book value of the stock of a closely held corporation or interest in a partnership,
				no discount will be allowed on assets that have a definite, established, and known
				daily market value and are readily reducible to cash at that value (that is, stocks
				and bonds).
(b) In ascertaining the book
				value of the common stock of a closely held corporation, the preferred stock, issued
				and outstanding, must be deducted at par value.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.15 - Government bonds and securities

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Treasury bonds and
				similar negotiable obligations issued by the United States are valued at:
1. The intermediate price between the low and high
				price prevailing on the date of death of the decedent if traded on an exchange or
				over the counter;
2. If there were no
				sales of bonds or similar negotiable obligations issued by the United States on the
				date of death, either the mean between the highest and lowest selling price for the
				previous day, or the nearest trading day prior to the date of death, or the prorated
				value used for Federal estate tax purposes reflecting the mean between the highest
				and lowest selling price on the nearest trading dates prior to and subsequent to the
				date of death may be used. The Alternative Valuation Date method of valuing bonds
				for Federal estate tax purposes is, however, not acceptable for New Jersey transfer
				inheritance tax purposes. All of the assets must be valued using the same
				method;
3. Interest accrued from last
				interest date to date of death is required to be added to the taxable estate in
				addition to the quoted value of bonds or similar obligations, except:
i. Interest accrued from the last interest date to
				the date of death is not included in the appraisal of the United States Savings
				Bonds Series "H."
ii. Government
				securities acceptable in payment of Federal estate taxes at par will be valued for
				New Jersey transfer inheritance tax purposes at their market value as of the date of
				a decedent's death in accordance with (a)1 above.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.16 - Stocks, bonds, mutual funds, and securities

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The value of
				stocks, bonds, and securities listed on any stock exchange is appraised on the basis
				of the intermediate price between the low and high price prevailing on the date of
				death.
1. If there were no sales of stocks, bonds,
				and securities listed on a stock exchange on the date of death, either the mean
				between the highest and lowest selling price for the previous day, or the nearest
				trading day prior to the date of death, or the prorated value used for Federal
				estate tax purposes reflecting the mean between the highest and lowest selling price
				on the nearest trading dates prior to and subsequent to the date of death may be
				used. The Alternative Valuation Date method of valuing stocks and bonds for Federal
				estate tax purposes is, however, not applicable for New Jersey transfer inheritance
				tax purposes. All of the assets must be valued using the same method;
2. Where stock on the date of death or thereafter
				is selling "ex dividend," the dividend is required to be added to the taxable estate
				in addition to the quoted value of the stock.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.17 - Patents, trademarks, copyrights, and other items

Current through Register Vol. 56, No. 14, July 15, 2024
The valuation of a patent, trademark, copyright, license, or
				  franchise, is a question of fact in each instance. The representative(s) of the
				  estate has the burden of proof to show the history of the item being valued, the
				  state of the art, or the monopoly created as of the date of death. The bookkeeping
				  entries or original costs are not regarded as a reliable gauge of value. In most
				  cases, the date of death value is primarily based upon the probable earnings such
				  items will bring their owner(s).
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.18 - Discretionary and legal common trust funds

Current through Register Vol. 56, No. 14, July 15, 2024
(a) As the admission and
				withdrawal to the funds are controlled by contract, the value of the fund,
				therefore, is to be determined as of the close of business on the last bank business
				days of January, April, July, and October of each year. For transfer inheritance tax
				purposes the valuation date shall be:
1. Where
				approval was obtained by the donor in his or her lifetime, then the valuation date
				so approved will control the value of his or her interest in the fund.
2. If the donor dies more than five days prior to
				a contractual valuation date without having applied for approval, it shall be deemed
				that such a request was in fact made; then the valuation date shall be the one next
				following his or her death.
3. If the
				donor dies five days or less prior to a valuation date, then the valuation date
				shall be the one next following the valuation date immediately after
				death.
4. If the donor dies one or more
				days subsequent to a valuation date, but more than five days prior to the next
				valuation date, the valuation date shall be the one following the date of
				death.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.19 - Contingent or defeasible estates

Current through Register Vol. 56, No. 14, July 15, 2024
(a) When an instrument
				creates an executory devise, or an estate in expectancy of any kind or character
				that is contingent or defeasible, the property which is the subject of such devise
				or in which such contingent or defeasible interest is created is appraised
				immediately at its clear market value. The value of the estate for life or term of
				years is then deducted from the appraised value of the property which is the subject
				of devise or limitation and the tax on such balance of the estate will not be levied
				or assessed until the person or corporation entitled thereto comes into the
				beneficial enjoyment, seizing, or possession thereof
(b) Where the provisions of an inter vivos trust
				or decedent's last will and testament create a right in the beneficiary to request
				that a limited sum be paid to him or her annually and no right exists in the
				beneficiary to terminate the trust, the interest of said beneficiary will be
				construed as contingent in character for transfer inheritance tax
				purposes.
(c) Where a number of years
				have elapsed between the date of death and the date of initial assessment, the
				Branch will inquire as to the amounts and dates of any payments to, or withdrawals
				by the beneficiary. If such payments or withdrawals have been made a contingent
				assessment, based upon the amount of corpus paid less any vested life estate value
				or discounted value will be completed.
(d) To secure contingent taxes, the bond of a New
				Jersey bank as principal or as one of the principals and as surety will be accepted,
				provided such bond meets the requirements of form and content of the approved Form
				of Bond, Form O-54. In the case of a foreign fiduciary, however, a bond issued by a
				surety company licensed to operate in New Jersey as surety must be filed.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.20 - Estates for life, estates for a term of years, and annuities

Current through Register Vol. 56, No. 14, July 15, 2024
Life estates, estates for a term of years, and annuities are
				  valued using an interest rate assumption of six percent and the mortality data for
				  persons of the relevant gender set forth in the tables of mortality contained in the
				  United States Decennial Life Tables (Life Table for Males: United States and Life
				  Table for Females: United States) most recently published by the United States
				  Department of Health and Human Services as of the date of the decedent's death. This
				  valuation methodology applies even in cases in which a holder of a life estate,
				  estate for a term of years, or annuity survives the decedent by only a short
				  period.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.21 - Vested remainders after estate for life, estate for a term of years, or annuity

Current through Register Vol. 56, No. 14, July 15, 2024
When a vested remainder interest in any property subject to the
				  New Jersey transfer inheritance tax is bequeathed, devised, conveyed, granted, sold,
				  or given subject to one or more life estates, estates for a term of years, or
				  annuities, such vested remainder is valued by first ascertaining the clear market
				  value of the whole property and then deducting the value of each such life estate,
				  estate for a term of years, or annuity as determined in accordance with the
				  provisions of N.J.A.C. 18:26-8.20.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.22 - Estates subject to power of appointment

Current through Register Vol. 56, No. 14, July 15, 2024
When an instrument creates a power of appointment, the life estate
				  or estate for years, to which such power is subject, is immediately appraised and
				  taxed according to the provisions of N.J.A.C. 18:26-8.22; however, the appraisal and
				  taxation of the remainder interest is suspended until the exercise of the power, at
				  which time it is taxed at the clear market value as of the date of death of the
				  creator of the power.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.23 - Certificates of deposit, savings certificates, and special savings accounts

Current through Register Vol. 56, No. 14, July 15, 2024
Certificates of deposit, savings certificates, special savings
				  accounts, and other accounts with banking institutions that provide for a penalty
				  for premature withdrawal are to be reported at face value at the death of the
				  decedent, plus interest that may have been credited up to the date of death, unless
				  it is necessary to redeem any or all of the items so described in order to pay the
				  debts of the estate, to carry out the provisions of the will, to effect distribution
				  of the estate under the intestate law, or for the payment of taxes. In those cases,
				  the actual amount received on redemption is reportable for
				  taxation.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.24 - Estates subject to power of appointment

Current through Register Vol. 56, No. 14, July 15, 2024
When an instrument creates a power of appointment, the life
				  estate or estate for years, to which such power is subject, is immediately appraised
				  and taxed according to the provisions of
				  18:26-8.2 2; however, the appraisal and
				  taxation of the remainder interest is suspended until the exercise of the power, at
				  which time it is taxed at the clear market value as of date of death of the death of
				  the creator of the power.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 8 - ASSESSMENT AND VALUATION › Section 18:26-8.25 - Certificates of deposit, savings certificates and special savings accounts

Current through Register Vol. 56, No. 14, July 15, 2024
Certificates of deposit, savings certificates, special savings
				  accounts and other accounts with banking institutions which provide for a penalty
				  for premature withdrawal are to be reported at face value at the death of the
				  decedent, plus interest which may have been credited up to the date of death, unless
				  it is necessary to redeem any or all of the items so described in order to pay the
				  debts of the estate, to carry out the provisions of the will, to effect distribution
				  of the estate under the intestate law or for the payment of taxes. In those cases,
				  the actual amount received on redemption is reportable for taxation.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 9 - RETURNS, PAYMENT AND PENALTIES › Section 18:26-9.1 - Date return due

Current through Register Vol. 56, No. 14, July 15, 2024
(a) All New Jersey transfer inheritance tax
				returns must be filed, together with payment of the reported tax, within eight
				months following the death of the decedent. Failure of the personal representative,
				heir-at-law or next-of-kin, surviving joint tenant, trustee, or transferee to file a
				return within the time prescribed subjects such party responsible for such filing to
				the penalties provided in
				N.J.S.A.
				54:35-3.
(b) The Director may grant an extension of time
				during which the return may be filed. An estate representative may request an
				extension of time to file the New Jersey transfer inheritance tax return by filing
				Form IT-EXT (Application for Extension of Time to File a Return). An extension may
				be requested for a period of four months beyond the original due date. If it is not
				possible to file the return within the four month extension period, the estate
				representative may request an additional two month extension, or a total of six
				months. Extension beyond six months from the original due date of the return will be
				granted only in cases where the Director determines that exceptional circumstances
				exist.
1. This subsection provides the authority
				only for an extension of time to file the New Jersey transfer inheritance tax
				return, and does not extend the time to pay the tax due. The tax liability arises as
				of the decedent's date of death and must be paid in full within eight
				months.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 9 - RETURNS, PAYMENT AND PENALTIES › Section 18:26-9.2 - By whom filed

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A return may be prepared, executed, and filed
				by:
1. The personal representative of the
				estate;
2. Any beneficiary entitled to
				share in the estate where letters testamentary or of general administration are not
				applied for or not required;
3. A
				surviving joint tenant where the decedent dies intestate and his or her entire
				estate passes to a surviving joint tenant by operation of law; or
4. The director of any county welfare board in
				cases where no executor or administrator has been appointed and an heir-at-law or
				next-of-kin is not available, or is unwilling to execute such returns, provided that
				such return is accompanied by a copy of the report of the board upon which the
				decision to grant assistance was based, and a copy of any document signed by the
				applicant (decedent) for assistance.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 9 - RETURNS, PAYMENT AND PENALTIES › Section 18:26-9.3 - Form of returns

Current through Register Vol. 56, No. 14, July 15, 2024
Returns are required to be made on Forms IT-R (Resident) and IT-NR
				  (Non-Resident) approved by the Director. These forms may be obtained by writing to
				  the Transfer Inheritance Tax Branch, PO Box 249, Trenton, NJ 08695-0249, or obtained
				  electronically via the Division of Taxation website at
www.nj.gov/treasury/taxation
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 9 - RETURNS, PAYMENT AND PENALTIES › Section 18:26-9.4 - Resident decedents' returns

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In the case of a
				resident decedent, all returns must be filed and tax must be computed on one of the
				following forms and accompanied by payment of tax, a copy of the decedent's will, if
				such decedent died testate, as well as a copy of the decedent's income tax return
				(Form 1040 or 1040A) filed with the Internal Revenue Service for the last full year
				preceding his or her date of death, and any relevant document outlined in the
				instructions of the appropriate form:
1. Form IT-R
				(Resident): Must be used in all resident estates;
2. Form L-4: Preliminary affidavit to be used in
				making application for consents to transfer prior to completion of the original
				return. The Branch in every case will retain control over a sufficient portion of
				the liquid assets (those assets that are readily converted to cash) to assure
				collection of the tax and filing of necessary returns. Payment on account may be
				taken into consideration but will not guarantee the issuance of consents to
				transfer. In no case will waivers be released unless payment is made by guaranteed
				funds;
3. Form L- 8: Self-executing
				waiver for use in permitting a transfer of assets to a Class "A"
				beneficiary;
4. Form L-9: Application by
				the representative of the estate of a resident decedent for issuance of a waiver
				permitting a transfer of real property to a Class "A" beneficiary; or
5. Form L-10: Affidavit and self- executing waiver
				of County Welfare Director.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 9 - RETURNS, PAYMENT AND PENALTIES › Section 18:26-9.5 - Nonresident returns

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In the case of a nonresident decedent, a
				return must be filed on one of the following forms and be accompanied by payment of
				tax, a certified copy of the decedent's will, if such decedent died testate, and any
				relevant document outlined in the instructions of the appropriate form:
1. Form IT-NR (Non-resident): Must be used in all
				nonresident estates; or
2. Form L-9NR:
				Application by the representative of the estate of a nonresident decedent for
				issuance of a waiver permitting a transfer of real property to a Class "A"
				beneficiary.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 9 - RETURNS, PAYMENT AND PENALTIES › Section 18:26-9.6 - Amendment to original return

Current through Register Vol. 56, No. 14, July 15, 2024
In the case of both resident and nonresident estates, any assets
				  and liabilities not disclosed in the original return and all supplemental data
				  requested by the Branch is to be filed in affidavit form on legal size paper 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 Transfer Inheritance Tax Branch, PO Box
				  249, Trenton, NJ 08695-0249.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 9 - RETURNS, PAYMENT AND PENALTIES › Section 18:26-9.7 - Confidential nature of returns

Current through Register Vol. 56, No. 14, July 15, 2024
(a) All New Jersey
				transfer inheritance tax returns and data filed in connection therewith are
				considered privileged communications pursuant to
				N.J.S.A.
				54:33-8 and
				54:50-8 and are not to
				be inspected or copied by any person other than:
1. In the case of an intestate decedent, the
				administrator duly appointed, or beneficiary entitled to share in the estate under
				the intestate laws or any duly authorized attorney for the foregoing
				persons;
2. In the case of a testate
				decedent, those persons entitled to share under a probated will or the executor, or
				any duly authorized attorney for the aforementioned persons; or
3. In the case of either an intestate or testate
				proceeding, a surviving joint tenant, or cestui que trust (trust beneficiary), or
				trustee or any duly authorized attorney for such persons, but only to the extent of
				such persons' legal or equitable interest in a decedent's estate.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 9 - RETURNS, PAYMENT AND PENALTIES › Section 18:26-9.8 - Payment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Due date of payment. The New Jersey transfer
				inheritance tax is due at the date of a decedent's death; however, payment may be
				made at any time within eight months after the date of death. There is no extension
				of time permitted or granted for the payment of the tax.
(b) Due date, executory devises, contingent future
				estates, estates subject to power of appointment. The New Jersey transfer
				inheritance tax on executory devise or the transfer of property subject to a
				contingency or a power of appointment is due and payable within two months after the
				person entitled to the property comes into enjoyment, seisin, or possession of such
				property.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 9 - RETURNS, PAYMENT AND PENALTIES › Section 18:26-9.9 - How tax is payable

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Full payment of the tax and interest, if any,
				must be submitted together with the return directly to the Transfer Inheritance Tax
				Branch, PO Box 249, Trenton, NJ 08695-0249.
(b) Where interest has accrued at the time of any
				payment, such payment is first credited in satisfaction of the accrued interest, and
				the excess credited in payment of the tax chargeable. The interest continues to
				accrue on any remaining balance from the date of said payment to the date of final
				adjustment.
(c) Payment on account of
				any transfer inheritance tax to be assessed may be made in advance of the actual
				assessment. Any payment on account will also be accepted to cover any compounded,
				contingent, or compromise assessment.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 9 - RETURNS, PAYMENT AND PENALTIES › Section 18:26-9.10 - Persons responsible

Current through Register Vol. 56, No. 14, July 15, 2024
Any administrator, executor, trustee to the extent of any estate
				  funds in his or her possession, grantee, donee, cestui que trust, beneficiary, and
				  buyer is personally liable for any and all New Jersey transfer inheritance taxes
				  until paid or provided for by bond in double the amount of the tax due to the extent
				  of his or her interest in the estate and an action at law may be brought in the name
				  of the State against any such person for payment of such tax. See
				  N.J.A.C.
				  18:26-10.4.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 9 - RETURNS, PAYMENT AND PENALTIES › Section 18:26-9.11 - Liability for nonpayment

Current through Register Vol. 56, No. 14, July 15, 2024
The tax on a gift in contemplation of death, or to take effect in
				  possession or enjoyment at or after death, if not paid by the donee must be paid by
				  the executor or administrator to the extent of the assets within such fiduciary's
				  possession or control.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 9 - RETURNS, PAYMENT AND PENALTIES › Section 18:26-9.12 - Late payment; general provisions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Any payment of the
				New Jersey transfer inheritance tax after the expiration of the corresponding day of
				the eighth month following the date on which it became due and payable will bear
				interest at the rate of 10 percent per annum on any unpaid portion of the tax, from
				the expiration of eight months after the date on which it became due and payable
				until the date of actual payment. See N.J.A.C. 18:2-4for general rules regarding
				timely filing and remittance.
(b) In
				cases where there is no corresponding day in the eighth calendar month following the
				date of death, the first business day of the succeeding month will be the effective
				date for purposes of determining interest and penalties; for example where decedent
				died June 30, 2013, the tax payment will not bear interest if made on or before
				March 1, 2014.
(c) In cases where a
				decedent dies while a member of the Armed Forces of the United States, the tax due
				begins to bear interest at the rate of 10 percent per annum on any unpaid balance
				due after the expiration of eight months after receipt of official notification of
				the death of the decedent by the spouse/civil union partner, parent, or next of kin
				of such decedent.
(d) Any person liable
				for the payment of the tax, may, in order to avoid a penalty, estimate and pay the
				tax believed to be owing prior to actual receipt of a tax bill. In the event of any
				overpayment of the tax, a refund will be made. In the event of an underpayment,
				interest will be charged on the balance due.
(e) Tax on any sum recovered as compensation for
				the death of a person caused by a wrongful act, neglect, or default not paid within
				30 days of the receipt of the award or settlement will bear interest at the rate of
				10 percent per annum from the expiration of eight months after the date of the award
				determination to the date of actual payment subject to the exceptions in (a)
				above.
(f) For returns due on or after
				July 1, 1993, the Director will waive the payment of any part of any penalty or
				interest attributable to the executor's, administrator's, or trustee's reasonable
				reliance on erroneous advice furnished to the taxpayer in writing by an employee of
				the Transfer Inheritance Tax Branch acting in the employee's official capacity,
				provided that the penalty or interest did not result from the failure of the
				executor, administrator, or trustee to provide adequate or accurate information
				giving rise to the erroneous advice. The executor, administrator, or trustee has the
				affirmative obligation to show that it was reasonable to rely on the written
				advice.