Legal Question in Wills and Trusts in New Jersey

Yes and no. You have not explained the relationship between the decedent and recipient of the account, as this could impact the tax question. Plus, the language of the Will on tax responsibility might also be important. If the intended recipient is a Class "A" heir (spouse, child, grandchild, parent, etc.) there might be no tax responsibility so withholding the distribution might not be fair, as Class "A" heirs can inherit up to an aggregate of $625,000 without an incidence of tax. Of course, if there were a more remote relationship or no relationship, the tax-free estate size would be diminished and there could be a tax imposed. Further, if the Will was silent upon tax-payment responsibility (the estate itself or the asset reciipient) this would mean that person getting the asset would be responsible for the taxes. NJ law is unique as the death tax law has several ramifications, including the relationship, if any, between the parties, the size of the inheritance, the size of the estate and the Will provisions, if any, on the tax payment responsibility. Plus, if the recipient is not a Class "A" heir, distribution can be held up by the State until taxes are finally determined. This could take months. This is a response to an Inetnet question and the reply is for information purposes only and is not intended to be legal advice or as creating an attorney-client relationship. As you can see, different facts produce different results.