02-10-2007, 06:32 PM
Join Date: Jun 2006
Location: Florida Keys
Originally Posted by NoDecafPlz
What a wonderful state NJ is. I think this states that whatever mom and dad share jointly, when Dad dies, even though they are married, She gets hit with both Federal and State.
New Jersey collects an inheritance tax called an inheritance transfer tax. For transfer inheritance tax purposes, New Jerseyís Domestic Partnership Act applies to decedents dying on or after July 10, 2004. It exempts all transfers made by will, survivorship or contract to a surviving domestic partner. In addition to the inheritance tax, New Jersey imposes a separate estate tax which may be applicable even in cases where there no New Jersey inheritance tax is due.
The property that is taxed must be valued at $500 or more. The New Jersey transfer inheritance tax ranges from 11% to 16% and is applied to real property that was transferred.
If a decedentís death occurs on or after January 1, 1985, property passing to a surviving spouse is entirely exempt from the tax. If a decedentís death occurs on or after July 1, 1988, property passing to a decedentís surviving parents, grandparents, children, stepchildren or grandchildren is entirely exempt from the tax. In addition to the inheritance tax there is an estate tax applied too.
Inheritance tax exemptions and rates may vary depending on who received the property, i.e. the decedentís spouse may be taxed at a lower rate than would be a friend of the decedent. A number of states are phasing out their inheritance tax systems.
Those that support inheritance tax say that it is not a death tax per say but a tax on a transfer of wealth that was received upon the death of a person. Those that are against it state that the full estate, not the amount transferred, increases the effective transfer tax rate. It should be less than the value of the estate.
I just though it was important to let you know that inheritance tax in New Jersey exists and it is piggybacked along with the estate tax for the state.
read slower, Joe.
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