l l l l l l Estate Tax Branch. mentation should be forwarded to the Inheritance and The supplemental affidavit along with supporting docu- market value of each on the decedent's date of death. description of the items being reported, including the fair Data submitted should consist of a thorough but concise representative of the estate, next of kin, or beneficiary. supplemental affidavit executed by the duly authorized the original return should be reported in the form of a For all estates, any assets or liabilities not disclosed in AMENDMENTS TO AN ORIGINAL RETURN
Trenton, NJ 08695-0249 PO Box 249 Inheritance and Estate Tax New Jersey Division of Taxation SEND correspondence, checks and documents to: INHERITANCE AND ESTATE TAX All CHECKS should be made payable to NJ the accrual of interest. PAYMENTS ON ACCOUNT should be made to avoid the required SOCIAL SECURITY NUMBERS. All returns, forms and correspondence must contain INCOME TAX RETURN is required. A copy of the decedent's last full year's FEDERAL estate. WRITINGS which may affect the distribution of the CILS (addendums to the will) and/or any SEPARATE supply a legible copy of the WILL, plus any CODI- If the decedent died Testate (with a will) you must
When filing with the Division IMPORTANT REMINDERS
(01-17, R-13) O-10-C
Inheritance and Estate INFORMATION
Inheritance and Estate
For additional information call: New Jersey Division of
“Inheritance & Estate T 3 John Fitch Way, 6th Floor
(8:30 Trenton, NJ 08695-0249 GENERAL
AM–4:30
nj.gov/taxation (609)
PO Box 249
or go to:
292-5033
PM, M–F)
Tax Branch
Taxation
ax”
Tax
(e.g., bank accounts, stock, Jersey. transfer of real or tangible personal property located in New For a Jersey and ALL transfer of real or tangible personal property located in New For a resident decedent after the date of death. the transfer of real or An Inheritance WHEN INHERITANCE TAX Division's web page at Estate ax return may be obt ained at or from the Inheritance andT to be Necessary forms and FORMS, INSTRUCTIONS 2018. the estates of resident decedents dying on or after Jan. 1, Additionally, no New Jersey Estate T to New Jersey Estate for instead follows the current Federal Internal Internal Tax no January 1, 2018. For these estates, the New Jersey Estate decedents dying on or after January 1, 2017, but before from that the New Jersey Estate exemption .L. 2016, c. 57 P WHAT’S NEW? the Federal Estate amount of the Credit for State Its ciaries. New Jersey first enacted an Estate with an 11% to 16% on the transfer of real and the law imposes a deceased person 5% tax was New Jersey has had an Inheritance an estate pays the Inheritance Tax is a credit against the Estate Tax; exemptions for spouses and charities. does Estate Tax is based assets, and based on Transfer Inheritance Tax is a “beneficiary” tax, and is INTRODUCTION
determining purpose
nonresident ax Branch T followed Revenue longer $675,000 aggregate not
Though imposed how who
only
decedent personal Trenton or in signed graduated the break the on
there is no direct tax on int ax return must be filed and the tax paid onT into law on was to ensure New Jersey receives the full higher down the size of the entire estate, and
etc.), RETURNS ("decedent")
the value of the estate which will be subject
intangible personal property. nj.gov/taxation downloaded in completing conforms to the to $2 Death allowed specifically
instructions Code in effect on Dec. 31, 2001, and million Oct. ax. Taxes value of $500 or more to certain benefi- personal distribution much each beneficiary received. The
T
ARE DUE ax.T Revenue provisions on property transferred from a In receives
14, 2016, provides
a return must be filed for the Tax
for the estates of resident
an Inheritance Inheritance to a beneficiary. Currently,
a return must be filed for the property within eight months
all such assets are used in concerning the procedure Tax since 1892 when a of the two.
ax will be imposed on
.
Tax a decedent’s
angible assets ax or EstateT of the Federal ranging of assets beyond
will increase Tax in 1934.
from the New Jersey,
property
against
Code from
l l l l l follows: There are four active Inheritance Tax beneficiary classes as BENEFICIARY CLASSES AND TAX RATES with the Inheritance and Estate Tax Branch in Trenton. decedent's date of death. The return should be filed directly the rate of 10% per annum beginning eight months after a acceptable bond is filed. Interest on unpaid tax will accrue at date of death unless the tax is paid before that time, or an tax is a lien on all New Jersey property for 15 years from the passing to someone other than Class A beneficiaries. The must be filed whenever any tax is due or when property is For either a resident or nonresident decedent the calculation of the tax and must be reported on the return.
Class E – Class D – Class C Class B – Class A –
• • • • • Including but not limited to: Over First Over Next Next Next First • • • • • • • • • • •
divisions. The State of New Jersey or any of its political sub- Non-profit benevolent or scientific institutions, Educational and medical institutions, Religious institutions, Qualified charities (generally 501(c)3), of a child of a decedent (after Feb. 19, 2007). Civil union partner or surviving civil union partner dent ( i.e., son-in-law or daughter-in-law), Spouse or surviving spouse of a child of a dece- Brother or sister of a decedent, Stepchild (but not step-grandchild or their issue). Mutually acknowledged child, Parents, grandparents, etc., Grandchild, great-grandchild, etc., Child (includes legally adopted child) Domestic partner after July 10, 2004, Civil union partner after Feb. 19, 2007, Spouse,
Exempt from tax beneficiary not classified as A, C, or E. Every other transferee, distributee or Eliminated by amendment July 1, 1963. Exempt from tax
Rate for Each Beneficiary $1,700,000 $1,075,000 Rate for Each Beneficiary
$700,000 $700,000 $300,000 $300,000 $25,000
@ 16% @ 15% @ 16% @ 14% @ 13% @ 11% No tax
a return