Estate Tax In New Jersey

[SSD53NJ]

What is the name of your state? NJ
Ok so I realize it's not Inheritance tax that's the issue but Estate tax I'd be facing as the beneficiary of my mom's estate. Anything over $675,000 is liable for Estate Tax, So how much is it?? Say she had $100,000 over the $675,000 limit. How much would it end up costing me as her son to inherit this? Remember I'm on Social Security Disability.
And here's another question. What if she simply took out the $100,000 & put it in a safe deposit box & spent it as she needed it? Who'se to say she was over the 675,000 limit? I wouldn't even have to file an Estate Return?

 

[anteater]

You should keep all your posts in the same thread.

What if she simply took out the $100,000 & put it in a safe deposit box & spent it as she needed it? Who'se to say she was over the 675,000 limit? I wouldn't even have to file an Estate Return?

And how would this be different than having it in a checking account and spending it? Oh wait.... Tax fraud is acceptable, eh?

 

[SSD53NJ]

Do you really believe it's tax fraud to take one's money out of a bank account ? I'm sure the bank doesn't like it but I don't believe a fraud is being committed.

 

[anteater]

Do you really believe it's tax fraud to take one's money out of a bank account ? I'm sure the bank doesn't like it but I don't believe a fraud is being committed.

Then, what is the point of doing so? In a bank account or in a safe deposit box, it is still part of her estate when she passes away.

 

[SSD53NJ]

Estate Tax

Do you have any legitimate ways to reduce an estate below the filing threshold? No annuities please.
Can you tell me how much estate tax is in NJ?

 

[SSD53NJ]

Estate Tax in NJ

What about gifting? Isn't that a legal means to reduce one's estate? What are the tax implications to the giftee (beneficiary)? And the giftor (estate) Is this reported as income? How much can a parent gift a child in New Jersey a year? How much can be gifted & not reported?

 

[willing to pay]

Reducing estate taxes

Listen closely. I just went through three years of litigation with my brother and sister over my mons estate. I can't tell you how much it cost us all because of jelousy.
First: The 675,000 I believe is now much higher, but will be going down in the future. Any accountant or tax preparer can tell you what the limit is. Even a call to the local IRS office will get you an answer. These are federal limits. You have to find out if there is a state limit, but I think federal over rules.

Second: You are 200% correct. If you are over the allowed inheritance limit take the money out of the bank as soon as possible. If your mother is not near death take it out over time, every week make a withdrawal. No one knows. For those who say it is still part of her estate, it is if you tell them it is. Let those fools pay taxes. Remember they know only what you tell them. And if you are under the limit you don't even have to probate the will or file a tax return. No one comes looking, it is all the honor system.You are better off not going to the surrogates office and recording (probating) the will.
If you are the next of kin, no husband, you get what she had. If you have brothers or sisters, be careful, very careful, don't trust them. You have to all be on the same page. Just take what she had and whack it up and shut your mouths, no recording, no filing, no attorneys, no accountants, no taxes. If I only knew then what I know now.
A lawyer may not tell you this because they make no money this way, but if you let an attorney get involved, they will stay involved till the money runs out.

 

[SSD53NJ]

Willing To Pay Person

I was just told by an Estate Attorney regarding the death of my father that the State requires my mother to file an Estate Tax Return even though the estate was valued below $675,000 & she was sole beneficiary. So I called the State tax dept & they told me if the estate is valued below $675,000 they don't require an Estate Tax Return. I called back the lawyer & he re asserted that was wrong. So use your own judgment here.
With regard to the Will, I think that if the wording is such that it's clear who mom or dad wants the assets to go to, where at least the other children are mentioned, & the parents were of full faculties at the time it was drawn, there's really nothing the other children can do if mom & dad wanted one child to get all. I think you're going to far when you say probate should be avoided. I think it's necessary after a will is drawn to establish the above.
I still have to find out if the State of Nj requires any form, affidavit, I think it's called an L-9
Affidavit Of Resident Decedent Requesting Real Property Tax Waiver??
I'd love to talk privately with you, "Willing To Pay". I think these websites are too full of bias & can give individuals misleading if not false information perhaps to make a buck!

 

[SSD53NJ]

Are all estate tax attorneys purposely misleading? I spoke to several telling me I needed to file an estate tax return but followed up with a call to the NJ Division of Inheritance & Estate tax who told me I definitely am not required to file. Is business that bad that they have to lie??

 

[willing to pay]

estate tax in NJ

Tried to send you a private message but the system says you have Private messages turned off.
P.S. read two post down "will contest"

What county are you in?
I read you feel probate is necessary, and safe if the will states who gets what.
I have witnessed and personally experienced otherwise.
I have been in court and watched as these issues were argued. I have seen people come years later to argue they deserve something from the estate, for whatever reason. Even the claim that there was a verbal promise from the deceased that they were going to give this or that. The court will find an "equitable" solution(meaning what is fair). This means you are going to get screwed. They call it splitting the baby and judges love it. Quote from judge," You know what I'm trying to do here, I'm trying to make everyone equally unhappy". It does not matter who is right and deserving and who is wrong and not deserving.

My father died before my mother. My father's will specifically stated that he left nothing to my mother because she had her own assets. My mother's will stated, she left nothing to my father because he had his own assets. This was ignored, at trial my mother's estate claimed it had gotten a particular asset that was my father's dispite the statement in his will.

The court also disregarded the terms of my mother's will when it came to who should be executor. There was a progression of alternates if the original executor's could not or chose not to be executor. The will stated which child would next be appointed executor. The court ignored all this. Once a will gets into the courts, it's toilet paper. The courts and the club of attorneys who work together on a daily basis do what they want. It's their power trip and they love it, and they want to show everyone they can do what they want. Try to buck them and they will enjoy teaching you that they can do what they want.
A lawyer may be helpful only if you know the game and the pitfalls. Another thing probated wills stay open for ever, that is why people come back years later. If you are going to probate, or before you decide, look into what is necessary to close the estate when everything is finished. You can go to the probate office and ask questions, tell them you're just inquiring about general information. Don't give your real name. Go to a different county's probate office. I inquired at my probate office and they never heard about fileing papers to close an estate. Once the bad genie is out it stays out.
You are walking in a mine field. If you have siblings there will be jealously, you must play the nice guy to kill this green monster or put him back into a coma. Always remember that they can re-awake this monster at anytime. Get a top estate attorney to help prevent problems but use your instincts about his suggestions. If you hear statements about things not being fair, you are on notice, act accordingly, very carefully.
This is not legal advice, I am not an attorney, just relating what I have witnessed and experienced.

 

[willing to pay]

Estate tax in NJ

Educate yourself.
Go to the chancery division of the court and sit there on motion day, usually a Friday, and see what goes on. It is open court and anyone is entitled to observe. It will be an education, sit in the front so you can hear everything.

 

[StuckOnStupid]

Are all estate tax attorneys purposely misleading? I spoke to several telling me I needed to file an estate tax return but followed up with a call to the NJ Division of Inheritance & Estate tax who told me I definitely am not required to file. Is business that bad that they have to lie??

SSD53NJ, you are asking attorneys to give you legal advice based on their knowledge of the law. They are going to give you legal advice that is "Bullet Proof" if possible.

Let me give you an example, in 2006 if a single person has earned income less than $8,450 they DO NOT NEED to file a Federal Income Tax return BECAUSE their income is right at or below the standard deduction and personal exemption amounts and no income tax would be due.

If the person was to seek "Bullet Proof" legal advice from a Tax Attorney what do you think the attorney would say?

#1) Don't bother filing a return because your income is below the limit, this may trigger and audit from the IRS 5 years later for not filing a return but don't worry you'll WIN but none the less may have to deal with that possiblity in the future.

OR

#2) File the return anyway even though you're NOT legally required to do so to avoid potential IRS problems in the future.

Now which of the two answers above is sound "legal" advice?

Both answers are correct.

 

[SSD53NJ]

Does a will have to be probated? Can a disgruntled sibling force the court to probate a will if they have knowledge that one exists based on the fact that after the first parent died they probated the first will & can find out who the lawyer was? If the will specifically spells out they want one child to be the beneficiary & the accounts are set up that way, can the courts overrule the parents wishes if the will is probated?

 

[qualified]

Don't look for expert advice from these posts. None of them have listed their area of expertice & are playing devil's advocate. They don't evn answer your questions.