New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX › Subchapter 1 - DEFINITIONS › Section 18:26-1.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
In addition to those terms that are defined in the Act, the
				  following words and terms, when used in this chapter, shall have the following
				  meanings unless the context clearly indicates otherwise:
"The Act", "the Law" or "the Tax Act" means Chapters 33 through 38
				  of Title 54 of the Revised Statutes of New Jersey.
"Blanket waiver" means the general written consent of the Director
				  issued by rule permitting banks, trust companies, savings institutions, and building
				  and loan and savings and loan associations operating in this State, to transfer up
				  to 50 percent of any shares held for or of the total funds on deposit to the credit
				  of a deceased resident of this State, either individually as a co-depositor,
				  trustee, agent, cestui que trust, or in any other capacity, prior to the final
				  payment of the tax and in the absence of a formal waiver. The blanket waiver also
				  authorizes the release of an amount in addition to the said 50 percent, called for
				  by a check or checks made payable to New Jersey Inheritance and Estate Tax, in
				  payment of transfer inheritance taxes chargeable.
"Branch" means the Transfer Inheritance Tax Branch.
"Civil union couple" means the legally recognized union of two
				  eligible individuals of the same sex established pursuant to
				  N.J.S.A.
				  37:1-28et seq., partners of which shall receive
				  the same benefits and protections and be subject to the same responsibilities as
				  spouses in a marriage.
"Civil union partner" means a person who has established a civil
				  union pursuant to the provisions of N.J.S.A. 37:1 -28 et seq.
"Class A transferee" means any person identified in
				  N.J.S.A.
				  54:34-2.a, which includes the following:
1. A father, mother, grandparent, grandchild, spouse, civil union
				  partner, or domestic partner;
2. A child or children of a decedent, including any stepchild of a
				  decedent or child or children adopted by a decedent in conformity with the laws of
				  this State, of any of the United States, or of a foreign country. A Class A
				  transferee also includes a non-biological child of a decedent where the child was
				  the offspring of a biological parent partner conceived by the artificial
				  insemination of that parent during the term of a marriage, civil union, or domestic
				  partnership with the decedent unless it is otherwise shown that the non-biological
				  parent had not intended to be the parent of the child;
3. The issue of any child or legally adopted child of a decedent;
				  or
4. Any child to whom the decedent for not less than 10 years prior
				  to the transfer stood in the mutually acknowledged relationship of a parent,
				  provided the relationship began at or before the child's 15th birthday and was
				  continuous for 10 years thereafter. This applies to persons who were taken into the
				  household and reared as children of the decedent, but who were never legally adopted
				  by the decedent.
"Class C transferee" means any person identified in
				  N.J.S.A.
				  54:34-2.c, which includes the following:
1. A brother or sister of a decedent;
2. A spouse/civil union partner or surviving spouse/civil union
				  partner of a son or daughter of a decedent.
"Class D transferee" means any other transferee, distributee, or
				  beneficiary who is not a Class "A," "C," or "E" transferee, as identified in
				  N.J.S.A.
				  54:34-2.d.
"Class E transferee" means any of the following:
1. The State of New Jersey or any political subdivision
				  thereof:
2. A tax-exempt organization that is organized and administered
				  exclusively for religious, benevolent, scientific, literary, educational, or
				  charitable purposes in which no part of the net earnings inures to the benefit of
				  any private stockholder or other individual or corporation, to include, but not
				  limited to, any tax-exempt organization under
				  26 U.S.C.
				  §
										501(c)(3) of the Internal
				  Revenue Code; provided, that the exemption does not extend to transfers of property
				  to such education institutions and organizations of other states, the District of
				  Columbia, territories, and foreign countries that do not grant an equal and like
				  exemption of transfers of property for the benefit of such institutions and
				  organizations of this State.
"Clear market value" means the market value of any property
				  included in any transfer, less any deductions allowable under the Law.
"Director" means the Director of the Division of Taxation of the
				  State Department of the Treasury.
"Domestic partner" means an individual who is in a relationship
				  that satisfies the definition of a domestic partnership as set forth in
				  N.J.S.A.
				  26:8A-3.
"Estate and property" means the interest of the testator,
				  intestate, grantor, bargainor, or seller, passing or transferred to the individual
				  or specific legatee, devisee, heir, next of kin, grantee, donee, or buyer, not
				  exempt from the provisions of the Act, whether such property be situated within or
				  outside this State and includes family partnership interest or family limited
				  partnership interest.
"Gross estate" means the value, as of the date of a decedent's
				  death of all property wherever situated, which is included in the decedent's estate
				  for inheritance tax purposes.
"Market value--date determined" means the value of property as of
				  the date of death of the transferor, whether or not the transfer was made during the
				  lifetime of the transferor.
"Person" means any individual, domestic partner, corporation,
				  organization, association, partnership, or any other legal entity.
"Proper representative of the estate" means the appropriate
				  representative as determined under the estate administration statutes, N.J.S.A.
				  3B:1-l et seq.
"Transfer" means and includes the passing of property or any
				  interest therein, in possession or enjoyment, present or future, by distribution by
				  statute, descent, devise, bequest, grant, deed, bargain, sale, or gift.
"Transferee" means any person to whom a transfer is made, and
				  includes any legatee, devisee, heir, next of kin, grantee, donee, buyer, assignee,
				  successor, or survivor or beneficiary.
"Waiver" means the written consent of the Director permitting the
				  transfer of one or more assets held in the name of a decedent or a decedent and
				  others.