Legal Question in Wills and Trusts in New Jersey

Re: Estate Returns

Yes, you must file both Federal and State ESTATE tax returns. Even though there will be no Federal Estate Tax, the filing of the return will start the Statute of Limitations running. It will also be valuable for establishing a tax basis in the assets transferred. There will be a New Jersey Estate Tax (even though there is no Inheritance Tax) and you must file and pay to NJ.

My suggestion is you retain a good Tax and Estate attorney to prepare the returns and assist you with the estate.

I hope this helps!

Ron Cappuccio

http://www.SaveYourEstate.com

Re: Estate Returns

If the gross estate is $860,000, the estate should not be required to file a federal estate tax return [form 706]... unless the decedent made large taxable gifts during lifetime that would exceed the amount of the federal exemption.

If all beneficiaries are Class A, then no NJ Inheritance tax return will be required.

However, since the gross estate exceeds the NJ Estate tax limit of $675,000, a NJ Estate Tax return will be required. There will likely be some NJ estate tax to pay, unless admin. expenses, debts, etc. reduce the taxable estate to under $675,000.

I would be happy to review any questions you might have and assist with the tax return preparation to reduce the tax the estate may owe.