Legal Question in Tax Law in New Jersey
NJ inheritence tax
Hi,
my mom will inherit approximatly 500k from her sister's estate. Some funds are in IRA accounts, i understand the inheritence tax is 11% after the first 25k. My questions...
are the retirement funds subject to inheritence tax? Are there any exemptions or deductions? Thanks, Karl
Asked on 6/06/05, 2:26 pm
1 Answer from Attorneys
Ronald Cappuccio
Ronald J. Cappuccio, J.D., LL.M.(Tax)
Re: NJ inheritence tax
Not only are the IRA's subject to NJ Inheritance tax, they are also subject to US and NJ Income tax. If your Mom is in a high income tax bracket, the combined State and Federal Rate can exceed 40%. Try to have your Aunt see a good estate tax lawyer right away!
I hope this helps.
Ronald J. Cappuccio, J.D., LL.M.(Tax)
http://www.SaveYourEstate.com
Answered on 6/06/05, 5:45 pm