Legal Question in Wills and Trusts in New Jersey

Re: Inheritance Tax & Disclosure Form

Inheritance Tax and Estate tax are collected based upon a return filed by the estate with the proper state and federal offices. The return should list all assets of the estate and all liabilities of the estate. The tax is based upon the net valuation of the estate.

Re: Inheritance Tax & Disclosure Form

If there is no specific language in the Will, the taxes paid are to be ratably allocated between all residual beneficiaries. If one gets stock, another gets cash and another gets real estate, the taxes would still be allocated. If necessary, assets may be required to be liquidated to cover the allocation. Not having read the Will, I do not know the language or the responsibility. These taxes can be paid one of two ways: They can be charged against the estate generally, or against the beneficiaries. This can impact on how and from what assets they are paid. If the residual estate is allocated by percentages one result can take place. If it is allocated by specific assets, another result can take place. More information is needed to give you a better answer. As to the notice to the attorney, there is no specific form. A simple letter should suffice. If you are a residual heir, you are entitled to progress reports, an accounting, and you will have to provide a Refunding Bond and Release at some time so the Executor can be discharged by the Surrogate's Court. If you need more information, e-mail me or call me at 973-377-3313.