Legal Question in Wills and Trusts in New Jersey

Re: Inheritence Taxes

Looks like no federal tax (under $1.5 million. There will be a NJ Inheritance tax. For assets passing to a brother, the first $25,000 is exempt. The amount over that will be taxed at 11%. You will need to file an inheritance tax return and obtain a tax waiver to release the inheritance tax lien on the house.

Re: Inheritence Taxes

I concur with Mr. Chester. The NJ Inheritance Tax is a two-part tax: the size of the estate/inheritance and the relationship of the beneficiary to the decedent. Only Class "A" heirs (spouse, children, grandchildren, parents) are exempt from the tax. Brothers are taxed at 11% if the value of assets exceeds $25,000.00. At $255,000 of value, $230,000 would be taxed at 11% (tax due is $25,300). To have clear title an inheritance tax return has to be filed for the estate, listing all assets, debts and expenses and allocating the remainder of the estate among the beneficiaries and submitting the tax and a waiver applied for the house, which must be recorded, as well as a Deed from the Executor to your father. The responsibility for the tax (who has to pay it) derpends upon the language of the Will. The liability may be the estate's or the individual beneficiary depending upon the language. Without seeing a copy of the Will I cannot answer that part of the question. The excecutor should have an attorney who is responsible for preparing the return. Doing this regulalrly (filing returns and handling estate administration) I could estimate the fees at a few hundred dollars or more, depending upon the nature of the assets and the number of heirs involved and their relationship to the decedent. A consultation would run about $200 if not more than a hour or so. I would need to see the Will to give you a better answer.