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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55140
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I live in NJ, and my father-in-law lived with us for 10 years.

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I live in NJ, and my father-in-law lived with us for 10 years. My wife had a joint account with him that has about $150,000 in it. He passed away and his wish was for him to have my wife split it with one step brother. The plan was to pay off any bills he had then split whats left. She went to see the Surrogate, who told her to put it into an estate account. And she did, did she need to do that since she was already on the account for over 8 years? Also now will she now be taxed on any of that money?
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good evening. How much was his total estate? Thanks.
Customer: replied 4 years ago.

The total was $150,000 he has sold his house a while back and pretty much just lived off his pension checks. She just paid his bills over the years, he had day care at our house while we were at work for about 5 years which took a toll on his savings.

Thanks so much for following up. One, she did not need to put the money in the estate. When there is a joint account, it vests automatically in the surviving owner upon the death of the first joint owner. Two, but, since she did, she still will have no tax....a) since they were his kids, they are exempt from the NJ state inheritance tax; b) NJ does not impose any estate tax unless the estate is worth at least $675,000; and c) the Federal exemption for estate tax is in excess of $5,000,000. So, botXXXXX XXXXXne, no tax even though she was not legally required to put it into the estate and/or to share it.
Customer: replied 4 years ago.

Would she have to pay any inheritance tax if she gets around $75,000?

Thanks for responding and I'm sorry for the delay...took a short dinner break. No, because she's his child, she is exempt from inheritance tax, no matter the amount.
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Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help! For easy access, my bookmark is:
Customer: replied 4 years ago.

Thank you, appreciate the help....

It's been my pleasure! Take care.