On Jan 12, 1:38 pm, Healthy Stealthy <healthysteal...[at]gmail.comwrote:
- quote -



NJ has both and estate tax & an inheritance tax.
The estate tax applies if the taxable estate is $675,000
The inheritance tax applies depending on the class of beneficiary
Lineal decendents are not subject to the inheritance tax.



<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----





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On Jan 14, 4:09*pm, Katie <katiej_1...[at]yahoo.com> wrote:
- quote -


Oops, I meant you needn't bother if the estate tax base totals LESS
than $675,000, not more!

Katie in San Diego

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On Jan 12, 10:38*am, Healthy Stealthy <healthysteal...[at]gmail.comwrote:
- quote -


The NJ estate tax is a "pickup" or "sponge" tax that originally was
designed to pick up the credit that was allowed under the federal
estate tax law for state death taxes. After the federal credit
started to phase out, NJ amended its law so that it picks up the
credit for state death taxes that would have been allowed under the
federal law as it was in effect as of December 31, 2001. At that
time, the federal unified credit for estate and gift taxes covered the
first $675,000 of the tax base (it's $1 million now, for federal
purposes). So you have to calculate the federal estate tax that would
have been due if the decedent had died on December 31, 2001, and the
maximum credit for state death taxes that would have been allowed at
that time. No point in going through that exercise if the estate,
plus any gifts that absorbed any of the unified credit during the
decedent's lifetime, totals more than $675,000.

Of course, assuming the father in your example is still living, these
rules may change between now and the date of his death, depending on
whether the federal estate tax "comes back" after 2011 and if so,
whether it incorporates a credit for state death taxes again.

As Joetaxpayer noted, bequests to lineal ancestors and descendants are
not subject to the NJ inheritance tax.

Katie in San Diego

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Healthy Stealthy wrote:
- quote -

I live in Massachusetts, so i looked at the Google and found on nj.gov,
http://www.nj.gov/treasury/taxation/....htm~mainFrame

Which states; If a decedent's death occurs on or after July 1, 1988,
property passing to a decedent's surviving parents, grandparents,
children, stepchildren or grandchildren is entirely exempt from the tax.
This is for the inheritance tax. The estate tax is a bit more complex,
but appears to depend more on the size of the estate. So further details
on the total estate value would be needed to answer, or you may read the
details at the link I posted.
JOE
www.blog.joetaxpayer.com

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Hello,

If a father has a home and wants to pass it to his two daughters after
he dies, do those girls have to pay an inheritance tax? Is there
anyway to not have this happen?

Thank you.

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