NEW JERSEY TRANSFER INHERITANCE TAX form was revised in October, 2009
New Jersey has had a Transfer Inheritance Tax since 1892 when a 5% tax was imposed on property transferred from a decedent
to a beneficiary. Currently, the law imposes a graduated Transfer Inheritance Tax ranging from 11% to 16% on the transfer of real and
personal property with a value of $500.00 or more to certain beneficiaries.
The Transfer Inheritance Tax recognizes five beneficiary
classes, as follows:
Class “A” - Father, mother, grandparents, spouse/civil union
partner (after 2/19/07), domestic partner (after 7/10/04), child or
children of the decedent, adopted child or children of the decedent,
issue of any child or legally adopted child of the decedent and stepchild
of the decedent.
Class “B” - Eliminated by statute effective July 1, 1963.
Class”C” - Brother or sister of the decedent, including half brother
and half sister, wife/civil union partner (after 2/19/07) or widow/
surviving civil union partner (after 2/19/07) of a son of the
decedent, or husband/civil union partner (after 2/19/07) or
widower/surviving civil union partner (after 2/19/07) of a daughter
of the decedent.
Class “D” - Every other transferee, distributee or beneficiary who
is not included in Classes “A”, “C” or “E”.
Class “E” - The State of New Jersey or any political subdivision
thereof, or any educational institution, church, hospital, orphan
asylum, public library or Bible and tract society or to, for the use of
or in trust for religious, charitable, benevolent, scientific, literary or
educational purposes, including any institution instructing the blind
in the use of dogs as guides, no part of the net earnings of which
inures to the benefit of any private stockholder or other individual
or corporation; provided, that the exemption does not extend to
transfers of property to such educational institutions and
organizations of other states, the District of Columbia, territories
and foreign countries which do not grant an equal, and like
exemption on transfers of property for the benefit of such
institutions and organizations of this State.
NOTES: If any beneficiary is claimed to be the mutually
acknowledged child of the decedent, said claim should be set forth
in the detailed manner prescribed under N.J.A.C. 18:26-2.6.
For the purposes of the New Jersey Transfer Inheritance Tax
an adopted child is accorded the same status as a natural child and,
therefore, his relations are treated in the same manner as those of a
natural child. (i.e. if the decedent’s adopted son marries/enters into
a civil union, his spouse/civil union partner is “the wife/civil union
partner of a son of the decedent” and therefore a class “C”
beneficiary).
The offspring of a biological parent conceived by the artificial
insemination of that parent who is a partner in a civil union is
presumed to be the child of the non-biological partner. In the
Matter of the Parentage of the Child of Kimberly Robinson, 383
N.J. Super. 165; 890 A.2d 1036 (Ch. Div. 2005) (Non-biological
parent of New York registered domestic partnership recognized in
New Jersey, presumed to be the biological parent of child
conceived by the other partner through artificial insemination
where the non-biological partner has "show[n] indicia of
commitment to be a spouse and to be a parent to the child.").
A devise of real property to a husband and wife/civil union
partner as “tenants by the entirety” provides each with a vested life
estate, the remainder being contingent. See N.J.A.C. 18:26-8.12.
The issue of stepchildren ARE Class “D” (NOT Class “A”)
beneficiaries.
The following ARE Class “D” (NOT Class “C”) beneficiaries:
stepbrother or stepsister of the decedent, husband/wife/civil union
partner/domestic partner or widow/widower/surviving civil union
partner/surviving domestic partner of a stepchild or mutually
acknowledged child of the decedent.
The fact that a beneficiary may be considered “nonprofit” by
the Internal Revenue Service does not necessarily mean that it
qualifies for exemption as a Class “E” beneficiary since the criteria
are different.
TAX RATES
Each class of beneficiary has its own separate tax rate. See the
Rate Schedule on Page 4.
EXEMPTIONS
1. The transfer of real and personal property in this State held by
a husband and wife/civil union couple as “tenants by the
entirety” to the surviving spouse/civil union partner is not
taxable for New Jersey Inheritance Tax purposes.
2. The transfer of intangible personal property such as stocks,
bonds, corporate securities, bank deposits and mortgages
owned by a nonresident decedent is not subject to the New
Jersey Inheritance Tax.
3. Any sum recovered under the New Jersey Death Act as
compensation for wrongful death of a decedent is not subject
to the New Jersey Inheritance Tax except as provided below:
a. Any sum recovered under the New Jersey Death Act
representing damages sustained by a decedent between the
date of injury and date of death, such as the expenses of
care, nursing, medical attendance, hospital and other
charges incident to the injury, including loss of earnings
and pain and suffering are to be included in the decedent’s
estate.
b. Where an action is instituted under the New Jersey Death
Act and terminates through the settlement by a compromise
payment without designating the amount to be paid under
each count, the amount which must be included in the
inheritance tax return is an amount, to the extent recovered,
which is equal to specific expenses related to the injury.
These expenses are similar to those mentioned in sections
a. above and include funeral expenses, hospitalization and
medical expenses, and other expenses incident to the injury.
Any amount which is recovered in excess of these expenses
is considered to be exempt from the tax.
4. The proceeds of any contract of insurance insuring the life of
a resident or nonresident decedent paid or payable, by reason
of the death of such decedent, to one or more named
beneficiaries other than the estate, executor or administrator of
such decedent are exempt for New Jersey Inheritance Tax
purposes.
5. The transfer of property to a beneficiary or beneficiaries of a
trust created during the lifetime of a resident or nonresident
decedent, to the extent such property results from the proceeds
of any contract of insurance, insuring the life of such decedent
and paid or payable to a trustee or trustees of such decedent by
reason of the death of such decedent, is exempt from the New
Jersey Inheritance Tax irrespective of whether such
beneficiary or beneficiaries have a present, future, vested,
contingent or defeasible interest in such trust.
6. The transfer of life insurance proceeds insuring the life of a
resident or nonresident decedent, paid or payable by reason of
the death of such decedent to a trustee or trustees of a trust
created by such decedent during his lifetime for the benefit of
one or more beneficiaries irrespective of whether such
beneficiaries have a present, future, vested, contingent or
defeasible interest in such trust, is exempt from the New Jersey
Inheritance Tax.
7. The transfer, relinquishment, surrender or exercise at any time
or times by a resident or nonresident of this State, of any right
to nominate or change the beneficiary or beneficiaries of any
contract of insurance insuring the life of such resident or
nonresident, regardless of when such transfer, relinquishment,
surrender or exercise of such right occurred, is exempt from
the tax.
8. Any amount recovered (under the Federal Liability for Injuries
to Employees Act) for injuries to a decedent by the personal
representative for the benefit of the classes of beneficiaries
designated in that Statute, whether for the pecuniary loss
sustained by such beneficiaries as a result of the wrongful
death of the decedent or for the loss and suffering by the
decedent while he lived, or both is not subject to the
Inheritance Tax.
Any amount recovered by the legal representatives of any
decedent by reason of any war risk insurance certificate or
policy, either term or converted, or any adjusted service
certificate issued by the United States, whether received
directly from the United States or through any intervening
estate or estates, is exempt from the New Jersey Inheritance
Tax.
This exemption does not entitle any person to a refund of any
tax heretofore paid on the transfer of property of the nature
aforementioned; and does not extend to that part of the estate
of any decedent composed of property, when such property
was received by the decedent before death.
9. The proceeds of any pension, annuity, retirement allowance,
return of contributions or benefit payable by the Government
of the United States pursuant to the Civil Service Retirement
Act, Retired Serviceman’s Family Protection Plan and the
Survivor Benefit Plan to a beneficiary or beneficiaries other
than the estate or the executor or administrator of a decedent
are exempt.
10. All payments at death under the Teachers Pension and Annuity
Fund, the Public Employees’ Retirement System for New
Jersey , and the Police and Firemen’s Retirement System of
New Jersey, and such other State, county and municipal
systems as may have a tax exemption clause as broad as that
of the three major State systems aforementioned, whether such
payments either before or after retirement are made on death to
the employee’s estate or to his specifically designated
beneficiary, are exempt from the New Jersey Inheritance Tax.
The benefit payable under the supplementary annuity plan of
the State of New Jersey is not considered a benefit of the
Public Employee’s Retirement System and is taxable whether
paid to a designated beneficiary or to the estate.
The death benefits paid by the Social Security Administration
or railroad Retirement Board to the spouse of a decedent are
also exempt. For purposes of filing a return these amounts
need not be reported nor are they to be deducted from the
amount claimed as a deduction for funeral expenses.
In all other cases the death benefit involved should either be
reported as an asset of the estate or deducted from the amount
claimed for funeral expenses.
11. Other pensions. An exemption is provided for payments from
any pension, annuity, retirement allowance or return of
contributions, which is a direct result of the decedent’s
employment under a qualified plan as defined by section
401(a), (b), and (c) or 2039(c) of the Internal Revenue Code,
which is payable to a surviving spouse or domestic partner.
12. No Fault Insurance. The amount payable by reason of medical
expenses incurred as a result of personal injury to the decedent
should be reflected by reducing the amount claimed for
medical expenses as a result of the accident.
The amount payable at the death of an income producer as a
result of injuries sustained in an accident, which are paid to the
estate of the income producer, is reportable for taxation. In all
other instances this amount is exempt.
The amount paid at death to any person under the essential
services benefits section is exempt from taxation.
The claim for funeral expense is to be reduced by the amount
paid under the funeral expenses benefits section of the law.
SAFE DEPOSIT BOXES
Safe deposit boxes are no longer inventoried by the New
Jersey Division of Taxation. On September 30, 1992, the Division
issued a blanket release in the form of a letter from the Director,
Division of Taxation, to all banking institutions, safe deposit
companies, trust companies, and other institutions which serve as
custodians of safe deposit boxes. The contents of the boxes may be
released without inspection by the Division.
WHERE TO FILE
All returns except the L-8 are to be filed with the New Jersey
Division of Taxation, Individual Tax Audit Branch, Transfer
Inheritance and Estate Tax, 50 Barrack Street, PO Box 249,
Trenton, New Jersey 08695-0249.
WHEN 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
ANONRESIDENT 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.
Page 3
IMPORTANT REMINDERS
• If the decedent died TESTATE you must supply a legible copy of the LAST WILL AND TESTAMENT, all CODICILS thereto and any
SEPARATE WRITINGS.
• A copy of the decedent’s last full year’s FEDERAL INCOME TAX RETURN is required.
• All returns, forms and correspondence must contain the decedent’s SOCIAL SECURITY NUMBER.
• PAYMENTS ON ACCOUNT may be made to avoid the accrual of interest. (Form IT-EP)
• If PAYMENTS are not made by CERTIFIED CHECK the issuance of waivers may be delayed.
• All CHECKS should be made payable to NJ INHERITANCE AND ESTATE TAX and sent to the New Jersey Division of Taxation, Individual
Tax Audit Branch, Transfer Inheritance and Estate Tax, 50 Barrack Street, PO Box 249, Trenton, NJ 08695-0249.
acknowledged child exists.
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.
For EXEMPTIONS see the heading “EXCEPTIONS”
below.AMENDMENTS TO AN ORIGINAL RETURN
In the case of both resident and non-resident estates, any assets
and/or liabilities not disclosed in the original return and all
supplemental data requested by the Division is to be filed in
affidavit form and attested to by the duly authorized statutory
representative of the estate, next of kin, or beneficiary certifying in
detail a description of the asset, real or personal and/or the liability
and the reasons for failure to disclose same in the original return
and filed directly with the NJ Transfer Inheritance.
ESTATE TAX
In addition to the inheritance tax, the State of New Jersey
imposes an estate tax on the estate of certain resident decedents.
Even estates that are partially or fully exempt from the inheritance
tax may be subject to the New Jersey Estate Tax.
A New Jersey Estate Tax Return must be filed when the gross
estate plus adjusted taxable gifts as determined in accordance with
the provisions of the Internal Revenue Code in effect on December
31, 2001, exceeds $675,000.
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. Instructions are contained in
form IT-Estate.
WAIVERS
Bank accounts, certificates of deposit etc., in the name of, or
belonging to a RESIDENT decedent, in financial institutions
located in this state, cannot be transferred without the written
consent of the Division of Taxation. This consent is referred to as
a WAIVER.
Stocks and bonds etc., in the name of, or belonging to a
RESIDENT decedent, of corporations organized under the laws of
this state are subject to the same waiver requirements.
Real property, located in New Jersey, in the name of, or
belonging to a RESIDENT or a NON-RESIDENT decedent is
subject to the same waiver requirements, however, real property
held by a husband and wife/civil union couple as “tenants by the
entirety” in the estate of the spouse/civil union partner dying first
need not be reported, regardless of the date of death and waivers are
not required.
A membership certificate or stock in a cooperative housing
corporation held in the name of the decedent and a surviving
spouse/civil union partner or domestic partner as joint tenants with
the right of survivorship is exempt, if it entitled them to use it as
their principal residence. However a waiver is required for this
transfer in the estate of a RESIDENT decedent.
Waivers are not required for automobiles, household goods,
personal effects, accrued wages or mortgages, but these items must
be reported in the return filed.
EXCEPTIONS
Notwithstanding the waiver provisions above any financial
institution may release up to 50% of any bank account, certificate
of deposit etc. to the survivor, in the case of a joint account, the
executor, administrator or other legal representative of a
RESIDENT decedent’s estate. This procedure is referred to as a
BLANKET WAIVER. This procedure is not available for the
transfer of stocks and bonds. For a detailed explanation see
N.J.A.C. 18:26-11.16.
A SELF EXECUTING WAIVER, FORM L-8, has been
created for Class “A” beneficiaries in the estates of RESIDENT
decedents.
Use of this form MAY eliminate the need to file a formal
Inheritance Tax return. Your attention is directed to the instructions
contained in the body of the L-8, a copy of which is included in this
booklet. (Not included in IT-R Schedule Booklet.)
This form is to be filed with the financial institution which will
then be authorized to release the subject asset without the necessity
of receiving a waiver from the Division. DO NOT file this form
with the Division.
A REQUEST FOR A REAL PROPERTY TAX WAIVER,
FORM L-9, has been created for Class “A” beneficiaries in the
estates of RESIDENT decedents. This form may be used in two
instances where property passes to class “A” beneficiaries.
Use of this form MAY eliminate the need to file a formal
Inheritance Tax Return. Your attention is directed to the
instructions contained in the body of the L-9.
This form is to be filed directly with the Branch. If the form
is in order the necessary waiver/waivers will be promptly issued.
NEITHER THE L-8 NOR THE L-9 may be used where it is
claimed that a relationship of mutually acknowledged child exists.
• If the decedent died TESTATE you must supply a legible copy of the LAST WILL AND TESTAMENT, all CODICILS thereto and any
SEPARATE WRITINGS.
• A copy of the decedent’s last full year’s FEDERAL INCOME TAX RETURN is required.
• All returns, forms and correspondence must contain the decedent’s SOCIAL SECURITY NUMBER.
• PAYMENTS ON ACCOUNT may be made to avoid the accrual of interest. (Form IT-EP)
• If PAYMENTS are not made by CERTIFIED CHECK the issuance of waivers may be delayed.
• All CHECKS should be made payable to NJ INHERITANCE AND ESTATE TAX and sent to the New Jersey Division of Taxation, Individual
Tax Audit Branch, Transfer Inheritance and Estate Tax, 50 Barrack Street, PO Box 249, Trenton, NJ 08695-0249.
First $700,000 15%
Over $700,000 16%
CLASS “D” TRANSFEREES IN ESTATES OF DECEDENTS
DYING ON OR AFTER 3-29-62
If less than $500: no tax
If $500 or more: no exemption
CLASS “A” TRANSFEREES ARE ENTIRELY EXEMPT
IN ESTATES OF DECEDENTS DYING ON OR AFTER JULY 1, 1988
Page 4
Exempt
11%
13%
14%
16%
First $ 25,000
Next 1,075,000
Next 300,000
Next 300,000
Over 1,700,000
Class “C” TRANSFEREES IN ESTATES OF DECEDENTS
DYING ON OR AFTER 7/1/88
contingency or condition which renders a definite determination of
the Transfer Inheritance Tax due impossible, the Division will
suggest a compromise of the tax based upon immediate payment
and final disposition of the tax. N.J.A.C. 18:26-2.14, N.J.S.A.
54:36-5 AND 54:36-6.
Therefore, enter on Line 8, the amount of the estate that is
“Contingent.”
In the event you wish to compute a compromise for the
Division’s review, you should include a rider setting forth full
computations and details and enter the proposed amount on Line
15. Following this procedure may speed the auditing of the
decedent’s return.
Be advised that where all or any portion of the contingent
amount has vested in a beneficiary by reason of the happening of
any contingency event, full details should be set forth on a rider,
the tax computed on a rider and entered on Line 16.
Line 18
Interest accrues at the rate of 10% per annum on any direct
tax or portion thereof not paid within eight months of the
decedent’s death.
With respect to the payment of the tax due on an executory
devise, or a transfer subject to a contingency or power of
appointment, any payment on such a transfer after the expiration
of two months from the date the contingency occurs or the
property vests, shall bear interest at the rate of 10% per annum
from the date the contingency occurs or the property vests, until
the date of actual payment.
In any case where a contingent remainder vests in beneficial
possession and enjoyment subsequent to the death of the original
decedent, but prior to the expiration of the statutory interest
period, interest on the contingent tax does not start to accrue until
eight months from the date of death of the original decedent.
Line 20
Payments on account may be made at any time to avoid
further accrual of interest on the amount paid. In any case where
the amount paid on account for New Jersey inheritance taxes
exceeds the amount of such tax due after final assessment has
been made, the amount so overpaid shall be refunded by the
State Treasurer in the due course of business, provided, however,
that all applications for a full or partial refund of the payment of the
transfer inheritance tax shall be made within three years from the
date of such payment. Make checks payable to: NJ Inheritance
and Estate Tax, P.O. Box 249, Trenton, New Jersey 08695-0249.
INSTRUCTIONS FOR RECITAL PAGE
Examples of Interest Computations
Date of Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-28-90
Interest Date (eight months) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-28-91
Tax Assessed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,120.48
Interest @ 10% per annum from 1-28-91 to 9-19-91 ($7,120.48 x 10% x 234/365) . . . . . . . . . . . . . . . . . . 456.49
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,576.97
Payment on Account (9-19-91) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,120.48)
Balance Due (plus interest @ 10% per annum from 9-19-91 to date of final payment) . . . . . . . . . . . . . . . . 456.49
Date of Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-29-90
Interest Date (eight months) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-29-91
Tax Assessed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $68,389.70
Payment of Account (4-19-91) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,974.56)
Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,415.14
Payment on Account (4-28-91) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31,927.02)
Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,488.12
Interest @ 10% per annum from 4-29-91 to 5-10-91 ($19,488.12 x 10% x 11/365) . . . . . . . . . . . . . . . . . 58.73
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,546.85
Payment on Account (5-10-91) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27,048.67)
Overpayment (to be refunded) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,501.82
INSTRUCTIONS FOR SCHEDULE “A”
Only list real property situated in New Jersey
DESCRIPTION: The real property should, wherever possible, be described by lot and block number, or street
and street number, or by a general description, with a reference to a record of the deed by which title was conveyed.
MORTGAGES: State the amount of mortgage encumbrances upon any parcel at date of decedent’s death.
State whether there was any mortgage insurance and, if so, submit verification as to the amount of same. If decedent
died without a will, state date of acquisition of each parcel of real property.
FRACTIONAL INTEREST: If the decedent owned a fractional interest, state the names in which the realty
was held, whether as joint tenants with right of survivorship or as tenants in common, and set forth in detail how the
interest was acquired. Submit a copy of the deed.
TENANTS BY THE ENTIRETY: Real property held by husband and wife/civil union partners, as “tenants
by the entirety” in the estate of the spouse/civil union partner dying first need not be reported.
OTHER LIENS: Taxes, assessments, accrued interest on mortgages, etc. must not be claimed in this schedule
but are to be listed on Schedule “D” of this return.
WAIVERS: Unpaid inheritance taxes constitute a lien on real property and waivers are therefore required to
transfer said real property, with the exception of real property held by husband and wife/civil union partners as
“tenants by the entirety” in the estate of the spouse/civil union partner dying first.
CO-OPS: A membership certificate or stock in a New Jersey cooperative housing corporation held in the name
of the decedent and a surviving spouse/civil union partner or domestic partner as joint tenants with the right of
survivorship is exempt, if it entitled them to use it as their principal residence. However a waiver is required for this
transfer in the estate of a resident decedent. (This should be reported on Schedule “B(1)-Stock”).
CONDOMINIUMS: An interest in a condominium is an interest in Real Property and therefore reportable on
Schedule “A”.
APPRAISALS: Submit a copy of any appraisal, contract of sale and/or closing statement. Only recital or
valuation page of appraisals are initially required. Additional supporting documentation will be requested if needed
INSTRUCTIONS FOR SCHEDULE “B”
If the taxpayer had any interest in a closely held corporation, partnership, joint venture or sole proprietorship,
the following information is required (in each instance):
1. A detailed balance sheet and profit and loss statement, revised to reflect the market value of the assets
thereof as distinguished from the net book value, as of the decedent’s date of death, or as near thereto as
the Director may deem acceptable.
2. For the five year period preceding the decedent’s date of death;
A. Detailed balance sheets.
B. Detailed profit and loss statements.
3. The nature of the business.
4. Describe and state the assessed and market value of any real property.
5. Set forth your basis for determining the clear market value as reported.
CLOSELY HELD CORPORATIONS
If the decedent had any interest in a closely held corporation, submit (in addition to the general information
required above):
1. For the five year period preceding the decedent’s date of death:
A. A listing of salaries paid to officers.
B. A listing of dividends paid, together with the name(s) of the payees.
2. Copy/copies of any stock purchase or option agreement to which the decedent was a party as of the date of
death.
3. Copy/copies of any insurance policy/policies on the decedent’s life payable to the corporation as
beneficiary together with a statement of the benefits payable thereunder.
4. The number of shares of stock of all classes issued and outstanding and the par value thereof.
5. List of stockholders setting forth the number of shares held by each.
PARTNERSHIPS OR JOINT VENTURES
If the decedent had any interest in a partnership or joint venture, submit (in addition to the general information
required above):
1. Copy of the partnership agreement.
2. Copy/copies of any mutual purchase agreement(s) to which the decedent was a party at the date of death.
3. Copy/copies of any insurance policy/policies on the decedent’s life payable to the surviving partners as
beneficiary together with a statement of the benefits payable thereunder.
SOLE PROPRIETORSHIPS
If the decedent had any interest in a sole proprietorship, submit (in addition to the general information required
above):
1. If any of the sole proprietorship’s assets are listed elsewhere on this return, (i.e. Schedule “A”), make full
disclosure.
1) SCHEDULE B-1: BANK ACCOUNTS/BROKERAGE ACCOUNTS
2) SCHEDULE B-1: STOCK
3) SCHEDULE B-1: INVESTMENT BONDS
4) SCHEDULE B-1: ALL OTHER PROPERTY
TOTAL LINES 1-4
Insert this total on Page 1, Line 3 “All Other Personal Property”
SCHEDULE “B (1)” RECAPITULATION - ALL OTHER PERSONAL PROPERTY
RESIDENT DECEDENT
(See Instructions Below)
_______________________________________________________ ____________/____________/____________
Decedent’s Name Decedent’s Social Security Number
BRING FORWARD TOTALS FROM EACH OF THE FOLLOWING SCHEDULES:
GENERAL INSTRUCTIONS FOR SCHEDULE “B (1)”
List all other personal property (excluding that on Schedule B) including all tangible personal property located permanently
in New Jersey.
These schedules must disclose not only all other personal property owned individually by the decedent but also all other
personal property standing in joint names (such as United States Savings Bonds, bank accounts, shares of stock, etc.) which may
be claimed by another or others as survivors.
Unless the surviving joint tenant is also a Class A beneficiary (see General Instructions), the transfer of ownership to a
surviving joint tenant or tenants pursuant to a joint tenancy with the right of survivorship is a transfer subject to tax. The deceased
joint tenant is deemed to have been the absolute owner of the property and the survivor/survivors are presumed to have received
a devise or bequest of the whole and not a part of the property. This presumption can be rebutted to the extent that the survivor
can prove contributions out of funds separate and apart from those that originated in the decedent. All joint assets including those
passing to exempt beneficiaries and those claimed not to have belonged to the decedent must be listed, with full market value as
of date of death.
These schedules must list all other intangible personal property such as, but not limited to, United States Savings Bonds;
treasury certificates; cash on hand; cash in the bank; deposits in Federal or State Credit Unions; mutual funds; bonds and
mortgages; promissory notes; claims; accounts receivables; corporate bonds; corporate stocks; accrued interest; dividends; salaries
or wages; insurance payable to the estate or its representatives; interest in any undistributed estate or income from any property
held in trust under the will or agreement of another, even though physically located outside the state at the time of death.
Waivers are not required for automobiles, household goods, accrued wages or mortgages, but these items must be reported on
Schedule B-1 “All Other Property”.
A membership certificate or stock in a New Jersey housing corporation held in the name of the decedent and a surviving
spouse/civil union partner or domestic partner as joint tenants with the right of survivorship is exempt, if it entitled them to use it
as their principal residence; however, a waiver is required for this transfer in the estate of a resident decedent.
INSTRUCTIONS FOR SCHEDULE “D”
If any notes, brokerage accounts or other claims are secured by collateral, describe the collateral pledged, with
its value as of the date of death of the decedent and state whether or not said collateral is included among the assets
disclosed in Schedule B or B(1). If collateral is not pledged, state after each loan “No collateral pledged”.
NOTE: No debt or claim is to be listed in this schedule unless still owing and unpaid at the time of death and unless
such debt or claim is to be paid out of the assets of the estate.
(EXAMPLE: That portion of medical bills paid or reimbursed by Medicare or other medical insurance
should not be claimed on this schedule).
Contested claims must be explained in detail. Do not list any taxes, either real, personal or income, chargeable
for any period subsequent to date of death; nor any claim against property located outside of New Jersey, unless such
property is subject to tax in this state.
The estate agrees to advise the Division if the amount actually paid in settlement of any fee, commission or debt
is greater or less than the estimated amount allowed and further agrees to the correction of the assessment, if
necessary.
For mortgages see instructions for Schedule “A”.
Examples of Allowable Deductions
FUNERAL EXPENSES:
Cemetery Plot (immediate family)
Funeral Luncheon
Flowers
Minister/Rabbi/Priest/Imam
Monument/Lettering
Funeral Costs
Acknowledgments
ADMINISTRATION EXPENSES:
Appraisal of real estate
Appraisal of personal effects
Surrogate’s fees
Probate expenses
Fee to notify creditors
Death certificates
Telephone tolls
Cost of Executor’s or Administrator’s Bond
Collection costs
Court costs
Cost on recovery and/or discovery of assets
Realty commissions in accordance with
N.J.A.C. 18:26-7.12
Storage of property if delivery to legatee not possible
within reasonable time
DEBTS OF DECEDENT OWING and
UNPAID AT TIME OF DEATH:
Personal accounts
Judgments
Federal income and gift taxes generally
Real estate mortgage:
(a) Interest accrued before death, deducted in
Schedule D
(b) Principal offset in Schedule A
Charitable pledges
State, county and local taxes accrued before death
Unpaid Inheritance Tax on interrelated estate
Examples of Non-Allowable Deductions
Contingent liabilities
Mortgage, taxes and accrued interest on tenants by entirety
property
Debts paid by insurance
Medical expenses paid prior to death
Liabilities of corporation of which decedent was a
shareholder
Real estate and property maintenance costs
Storage expense
State, county and local taxes accruing after date of death
Transfer Inheritance Tax
Real estate brokers commissions, except if real property sold
during administration of estate
Debts on property located outside of New Jersey
Federal Estate Tax
REMEMBER TO:
1. Attach a copy of the decedent’s will, codicils, trusts, and last full year’s Federal
Income Tax Return.
2. Fill-in the decedent’s social security number.
3. Sign the return and have it notarized.
FAILURE TO DO ANY OF THE ABOVE
MAY RESULT IN PROCESSING DELAYS
All checks should be made payable to N.J. Inheritance and Estate Tax and mailed to:
N.J. Division of Taxation
Individual Tax Audit Branch
Transfer Inheritance and Estate Tax
PO Box 249
Trenton, New Jersey 08695-0249
For information regarding the N.J. Transfer Inheritance and Estate Taxes call:
(609) 292-5033
