Legal Question in Wills and Trusts in New Jersey

Re: Inheritance Tax - Which form to use?

Because you recieve the bulk of your brother's estate, and you are not a Class 'A' beneficiary, you will need to file a NJ Inheritance tax return in order to release the NJ Inheritance tax lien on the assets.

In addition, if the estate exceeds $675,000 you will also need to file a NJ Estate tax return.

Please contact me if you need any help preparing the tax returns.

Re: Inheritance Tax - Which form to use?

Jon is correct, but I add the following. Since you are inheriting assets outside the intestacy statute (covers who inherits when there is no Will), by account designation (POD), if the aggregate you will be receiving exceeds $25,000 you will require a Tax Waiver and are subject to pay Inheritance Taxes. Most entities will freeze 1/2 of Class "C" beneficiary accounts until the Waiver or an exemption is issued, and, being cautious, may do so even if the aggregate is within the $25,000 exemption amount. Question, are you keeping the account proceeds or giving them to your parents? If the latter, you must issue a Disclaimer (to be filed with the Surrogate within 9 months of the date of death), and your parents will become entitled to the accounts. As Class "A" beneficiaries, no taxes will be imposed unless the aggregate net estate exceeds $675,000. If you have questions or need or want to discuss my response, contact me directly.