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

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Answered on 6/06/05, 5:45 pm


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