- New Jersey has regulations on permissible deductions from inheritance taxes.
- These permissible deductions are set forth in the State’s Administration Code.
- Not all estate related expenses are deductible.
Questions often are asked concerning permissible deductions on a decedent’s NJ inheritance tax return. NJ law significantly limits these deductions. Below are the permissible deductions.
- Cemetery plot (immediate family)
- Funeral luncheon
- Monument/lettering on tombstone
- Funeral related costs
- 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
- Federal income and gift taxes generally
- Unpaid mortgage principal and interest on the decedent’s date of death
- Charitable pledges
- State, county and local taxes accrued before death
- Unpaid inheritance tax on interrelated estate
To discuss your NJ estate administration matter, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at firstname.lastname@example.org. Please ask us about our video conferencing consultations if you are unable to come to our office.
By Fredrick P. Niemann, Esq., of Hanlon Niemann & Wright, a Freehold Township, Monmouth County NJ Estate Administration Attorney