Financing in New Jersey>Question Details

Sarah, Home Buyer in New Jersey

My brother and I are about to inherit property in NJ. Do you know how much tax the gov. can charge us?

Asked by Sarah, New Jersey Mon Mar 3, 2008

Also, are our spouses intitled to anything and/or our children? Thank you.

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In the state of New Jersey there is no Inheritance Tax but there is an Estate Tax that you maybe subject to. I'm not a tax professional but from what I read if the estate is greater than $675,000 an Estate Tax is applicable. IT would have to be paid within 9 months of the date of death. (see link below). Also since the state of New Jersey is a dual property state and you reside in the state, it means your spouse would be entitled to 1/2 of anything you come to possess. Your children have no applicable rights. I hope this helps
1 vote Thank Flag Link Thu Mar 20, 2008
Dear Sarah,

Below is some information on the NJ inheritance tax. I hope this helps answer some of your questions regarding the property. The other issue regards your spouses and children, I suppose that would all depend on whether or not they were named in the will as a beneficiary. If the property is in intestate meaning without a will then the state will appoint an administrator and then determines the manner in which the property is distributed. Best of Luck to you. Lucy
http://www.state.nj.us/treasury/taxation/index.html?ot7.htm~…
If a decedent's death occurs on or after January 1, 1985, property passing to a surviving spouse is entirely exempt from the tax. If a decedent's death occurs on or after July 1, 1988, property passing to a decedent's surviving parents, grandparents, children, stepchildren or grandchildren is entirely exempt from the tax. If a decedent’s death occurs on or after July 10, 2004, property passing to a surviving domestic partner (Domestic Partnership Act) is entirely exempt from tax. If a decedent’s death occurs on or after February 19, 2007, property passing to a surviving civil union partner is entirely exempt from tax.

In many instances, if all of a decedent's property passes to a surviving spouse, domestic partner, civil union partner, children, stepchildren, parents, grandparents or grandchildren, it will not be necessary to file an Inheritance Tax return with the Division of Taxation. In such cases, Form L-8 may be used to secure the release of bank accounts, stocks, bonds and brokerage accounts and Form L-9 may be used to secure the release of the State's lien on real property owned by the decedent.
0 votes Thank Flag Link Tue Mar 4, 2008
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