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Dimitry Esquire
Dimitry Esquire, Attorney
Category: Estate Law
Satisfied Customers: 41220
Experience:  JA Mentor. I run my own practice that specializes in Estate Preparation and Administration
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My aunt passed away in NJ. Her nephew was executor and her

Customer Question

My aunt passed away in NJ. Her nephew was executor and her request to him was to sell all and gift half to me. I live in Florida. My question is what tax laws apply to myself as well as my Aunt's nephew? thank you.
Submitted: 6 months ago.
Category: Estate Law
Expert:  Dimitry Esquire replied 6 months ago.

Thank you for your question. Please permit me to assist you with your concerns. I am a licensed New Jersey professional and will do my best to help.

That depends. Are the items in question personal property or real estate, or both types of property exist?

Customer: replied 6 months ago.
real estate
Customer: replied 6 months ago.
The home was sold and the gift comes from that sale. Thank you.
Expert:  Dimitry Esquire replied 6 months ago.

Hi,

Real estate is paid based on tax laws in the state where the real estate is located in. Since the property is in New Jersey, there is a tax rate of 15-16% because you would be a Class D beneficiary. Your nephew, being a direct descendant, would be listed as a Class A beneficiary and would pay no tax for the transfer of funds. Please look to this sumary direct from the NJ Department of the Treasury for more information:

http://www.state.nj.us/treasury/taxation/inheritance_over.shtml

Sincerely,

Dimitry, Esq.

Customer: replied 6 months ago.
You misunderstood me, her executer is actually her nephew and I am her niece. I am a direct descendant but her nephew is actually by marriage. Since I was not named in the will, I assume he would be gifting the money to me at my Aunt's verbal request.
Expert:  Dimitry Esquire replied 6 months ago.

Hi,

My apologies on the misunderstanding. Regardless, since you are not a direct descendant or an ascendant (parent), you are not deemed close enough under NJ law to avoid tax consequence. To be a direct descendant you must be her child, not one step removed which appears to be the case. As far as receiving the funds, that only occurs if there is no will and your aunt left no descendants, living parents, or others who are closer to inheriting. If not, then all parties that are legally similarly far away from your aunt would inherit equal shares of the estate. Both the nephew and the niece would therefore have tax consequences.

Sincerely,

Dimitry, Esq.

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