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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11361
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I need an Estate Accountant to help me. New jersey - My mom

Customer Question

I need an Estate Accountant to help me. New jersey - My mom passed away recently. Small estate of 105,000 aggregate of all probate and non probate assets. I am executor and beneficiary of residual. Mom also left me a TOD account and TOD asset. Of the 6 beneficiaries, there is only one that is a Taxable class D beneficiary. The condo and a small stock was in moms name and the only items that went into probate. Attorney advised that for tax matters, a NJ Transfer Inheritence tax Rtn needed and thereby also attorney said Tax waivers will be requested. I understand why Tax waivers needed for Probate assets. But attorney said they need all the information for any and all TOD accounts and TOD assets and need date of death values on everything. Why do they need the information of Non probate assets to be on the return and otain Tax Waivers for.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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This is because he probate estate and the POTENTIALLY taxable estate are two different things.

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... sounds like you understand the way NJ handles the different classes of beneficiaries.

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But this is a separate issue from what assets go through probabte ( a probate/will issue ) and what assets are counted toward the state's inheritance tax

Expert:  Lane replied 1 year ago.

Probate law ... (wills, intestacy, etc) and inheritance tax (state tax law) two different issues

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Let me know if you have questions

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Lane

Customer: replied 1 year ago.
it sounds like all assets of the decedent are to go into the Inheritance tax Return regardless of beneficiary or class of beneficiary, probate asset, or non probate assset, it all goes in. Is that what you mean .
Expert:  Lane replied 1 year ago.

That's correct. (The only way to know the size of the GROSS estate).

Probate vs non-probate is about how something is re-titled.

All assets are part of the estate for estate tax purposes.

Expert:  Lane replied 1 year ago.

Maybe this will help: (I'll underline the pertinent part)

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N.J.S.A. 54:35-5 provides that the New Jersey transfer inheritance tax, whether levied and assessed or not, is a lien on all property owned by the decedent as of the date of his death for a period of 15 years, unless sooner paid or secured by bond. N.J.S.A. 54:35-19 provides, with certain exceptions, that without the written consent of the Director (i.e. – tax waiver), banking institutions and other institutions, corporations and persons may not deliver or transfer any assets within their control or possession which belong to or stand in the name of a resident decedent, or in the joint names of a resident decedent and one or more persons.

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Hope this helps to clarify.

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Lane

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If this HAS helped, and you don't have additional questions on this, I'd appreciate a positive rating (by clicking the stars or smiley faces on your screen) ... that's the only way I'll be credited for the work here)

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