Legal Question in Wills and Trusts in New Jersey

My wife and I inherited her grandmothers estate 7 years ago.In the will her grandmother willed my wife and I her home.My wifes brother and sister contested the will and it went on for over a year we finally decided to give them money from the will and took a loan against the home after it was put into our names. We are now in a short sale on the home and the title company told us we owe 16% taxes at closing because I am a D class inheriter.#1- we took 55,000 loan on the home to pay off her relitives souldnt this come off our taxes from the home? #2 its a short sale we are not getting money from the home do we still owe taxes at clocing on it ?


Asked on 12/31/15, 4:10 am

1 Answer from Attorneys
Jonathan Chester The Law Office of Jonathan S. Chester, Esq., LLC

The inheritance tax is based upon the facts as of the grandmother's date of death. Your 50% interest in the house's then value would be taxed at 15%. A tax return should have been filed at the time. If you didn't pay the tax then, you will also owe 10% interest. The post-death facts [estate settlement, short-sale, etc.] do not matter.

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Answered on 12/31/15, 5:54 am


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