Get accurate NJ inheritance tax returns
Inheritance tax returns always come at a difficult time. Our licensed and credentialed tax professionals ease this burden with easy, accurate, and timely NJ inheritance tax filings.
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Tax filing mistakes could deplete your inheritance
Estate tax filing is inevitable. Cutting corners and having someone other than a licensed tax professional file your estate taxes might result in costly mistakes that will deplete the funds the beneficiaries were supposed to enjoy.
Avoid interest
The NJ Division of Taxation requires that you file an accurate return within eight months of the decedent's death. Failure to do so can result in annual interest rates of 10% on any direct tax portion.
Unfreeze your funds
In many cases, 50% of financial assets will be frozen until the NJ division of taxation issues an official waiver to release funds. Find out more about beneficiary classes and obligations.
Avoid costly mistakes
Properly filing today can help you prevent complicated situations where beneficiaries have to repay the estate.
Let's file your estate taxes
When a loved one dies, there are many more important things to take care of than filing paperwork. We take on that burden so that you can easily and efficiently distribute the inheritance to the beneficiaries.
We make NJ inheritance tax preparation easy
1. Book a consultation
During your consultation, we will ask questions about your timeline and beneficiaries and discuss important topics such as the forms we will need to prepare and what we charge for them.
2. Upload your documents
After you have retained our firm, we will provide you with a detailed and comprehensive checklist of all the documents we need, such as a copy of the will, the decedent's last filed tax returns, and other items related to assets and liability.
3. We prepare and submit your returns
We will prepare the forms for your ITR, 1041, IT-L-8, or any other form you may need. Once we have prepared your returns, we will submit them to the NJ Division of Taxation via certified mail or overnight delivery.
4. You receive your waiver
We will keep you informed about the estimated timeline to receive your waiver, which will automatically release the lien on the inherited assets.
We’re open year-round
Our firm has helped individual taxpayers feel confident about their tax returns since 1990. We’re here to assist you with IRS letters, questions about deductions, or anything else year-round. Simply call us or book a time to speak with a representative.
Executors are personally liable for filing inheritance tax returns in New Jersey
All of our tax professionals understand the difficulties of administering an inheritance while dealing with a recent death. We support executors with accurate and timely tax filing and help them avoid mistakes that could result in future complications.
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That depends on what “class” of beneficiary you fall into. Parents, children or grandchildren fall into “Class A” and are exempt from taxes, however, other beneficiaries such as nieces, friends, significant others or even charitable donations fall into different classes and are subject to taxation.
It is important to note that even if you are exempt from taxation, you still need to file estate taxes and respect the deadline to file.
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Yes, even if you are a Class A beneficiary, you still need a waiver to sell any real estate that you have inherited.
The waiver acts as proof that the NJ inheritance tax is paid. For example, if an estate has assets such as real estate and the realty will be sold to a buyer, the title company or the attorney for the buyer will usually require a waiver before closing. Otherwise, at closing a large escrow may be held from the proceeds until the waiver is recorded by the county clerk where the realty is located.
If the estate's beneficiaries are Class A (such as a parent, child, grandchild, etc.) no tax may be due. However, you still need to provide a waiver. Some waiver applications are obtained by submitting a formal Inheritance Tax Return (download Form ITR); others are obtained by filing a "streamlined" form such as Form L-9. Form L-9 can only be issued if all the beneficiaries are "Class A".
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Half the funds in bank accounts and brokerage accounts are frozen until the executor provides either a waiver or Form L-8. If all the beneficiaries are Class A (such as a parent, child, grandchild, etc.) you may usually file Form L-8 with the bank or brokerage company, and they will release the frozen funds.
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Typically, it takes approximately 90 days from the time the application or return has been submitted to the NJ Inheritance Tax Section to issue the waivers. The issuance of waivers may be delayed if the return is under review or if the return is being audited. That is why it is important to file an accurate and well-documented return if you want to obtain the waivers in a timely manner.
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Some law firms are very good at preparing certain inheritance tax returns such as NJ Form ITR. However, many law firms delegate the preparation of the form to paralegals or secretaries and many times this causes delays, errors, and miscalculations of the tax. Having a qualified and licensed tax accountant that has extensive experience in tax representation before the NJ Division of Taxation is usually the best approach when engaging professionals for the submission of the Form ITR.
