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 Tax INFORMATION
Inheritance and Estate Tax Branch
For additional information call: New Jersey Division of
“Inheritance & Estate Tax” 3 John Fitch Way, 6th Floor
(8:30 Trenton, NJ 08695-0249 GENERAL
www.njtaxation.org
(609)
AM–4:30 PM, M–F) PO Box 249
or go to:
292-5033
T
axation
(e.g., bank accounts, stock, etc.), all such assets are used in Jersey. Though there is no direct tax on intangible assets transfer of real or tangible personal property located in New For a nonresident decedent 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 personal property within eight months An Inheritance Tax return must be filed and the tax paid on WHEN INHERITANCE TAX RETURNS ARE DUE Division's web page at www.njtaxation.org. Estate Tax Branch in Trenton or downloaded from the Tax return may be obtained at or from the Inheritance and to be followed in completing an Inheritance Tax or Estate Necessary forms and instructions concerning the procedure FORMS, INSTRUCTIONS 2018. the estates of resident decedents dying on or after Jan. 1, Additionally, no New Jersey Estate Tax will be imposed on to New Jersey Estate Tax. for determining the value of the estate which will be subject instead follows the current Federal Internal Revenue Code Internal Revenue Code in effect on Dec. 31, 2001, and Tax no longer conforms to the provisions of the Federal January 1, 2018. For these estates, the New Jersey Estate decedents dying on or after January 1, 2017, but before from $675,000 to $2 million for the estates of resident that the New Jersey Estate Tax exemption will increase P.L. 2016, c. 57 signed into law on Oct. 14, 2016, providess, etc., WHAT’S NEW? the Federal Estate Tax. amount of the Credit for State Death Taxes allowed against Its purpose was to ensure New Jersey receives the full ciaries. New Jersey first enacted an Estate Tax in 1934. with an aggregate value of $500 or more to certain benefi- 11% to 16% on the transfer of real and personal property the law imposes a graduated Inheritance Tax ranging from deceased person ("decedent") to a beneficiary. Currently, 5% tax was imposed on property transferred from a New Jersey has had an Inheritance Tax since 1892 when a an estate pays only the higher of the two. the Inheritance Tax is a credit against the Estate Tax; exemptions for spouses and charities. In New Jersey, does not break down the distribution of assets beyond Estate Tax is based on the size of the entire estate, and assets, and how much each beneficiary received. The based on who specifically receives a decedent’s Transfer Inheritance Tax is a “beneficiary” tax, and is INTRODUCTION
intangible personal property.
a return must be filed for the
a return must be filed for the
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, grandparent Grandchild, great-grandchild, etc., Child (includes legally adopted child) Domestic partner after July 10, 2004, Civil union partner after Feb. 19, 2007, Spouse,
beneficiary not classified as A, C, or E.
Rate for Each Beneficiary Rate for Each Beneficiary
Exempt from tax Every other transferee, distributee or Eliminated by amendment July 1, 1963. Exempt from tax
$1,700,000 $1,075,000
$700,000 $700,000 $300,000 $300,000
$25,000
a return
@ 16% @ 15% @ 16% @ 14% @ 13% @ 11% No tax