WHEN NJ INHERITANCE TAX RETURNS ARE DUE

WHEN NJ INHERITANCE TAX RETURNS ARE DUE

       A Transfer Inheritance Tax Return must be filed and the tax paid on the transfer of real and personal property within eight months after the death of either:

A RESIDENT decedent for the transfer of real or tangible personal property located in New Jersey or intangible personal property wherever situated, or

A NONRESIDENT decedent for the transfer of real or tangible personal property located in New Jersey. No tax is imposed on nonresident decedents for real property located outside of New Jersey and intangible personal property wherever situated.

       The return must be filed whenever any tax is due or a waiver is needed. The tax is a lien on all property for fifteen years unless paid sooner or secured by an acceptable bond. Interest accrues on unpaid taxes at the rate of 10% per annum.

ESTATE TAX

       In addition to the inheritance tax, the State of New Jersey  imposes an estate tax on the estate of certain resident decedents.  The estate tax is designed to absorb any portion of the credit allowable for State death taxes under the federal estate tax law that is not fully taken up by the aggregate amount of all death taxes paid to any State, United States territory or the District of Columbia. The tax is the difference, if any, determined by subtracting the amount of the inheritance, legacy and succession taxes paid to this State and elsewhere from the allowable credit. Even estates that are partially or fully exempt from the inheritance tax may be subject to the New Jersey State Tax.

       The New Jersey Estate Tax obligation is in no way discretionary on the part of the taxpayer. It MAY NOT be satisfied by payment of the appropriate amount to the Federal Government in lieu of claiming the credit allowable for Federal Estate Tax purposes.

       The law requires that a copy of the Federal Estate Tax return be filed with the Division within thirty days after the filing of the  original with the Federal Government. Also, the Division must be supplied with copies of all communications from the Federal  Government making final changes or confirming, increasing or decreasing the tax shown to be due. Further instructions are  contained in the body of the Estate Tax return, a copy of which is included in this booklet.