N.J. Admin. Code § 18:26-10.3

Current through Register Vol. 56, No. 21, November 4, 2024

Section 18:26-10.3 - Deduction or collection of tax before distribution

(a) An executor, administrator, or trustee having charge or holding in trust any property subject to the New Jersey transfer inheritance tax for distribution is to deduct from such property the transfer inheritance tax assessed and levied on the transfer prior to distribution to the transferee. In the event the property to be transferred is not money, however, the executor, administrator, or trustee is to collect the transfer inheritance tax assessed and levied from the person entitled to the property prior to delivering such property to the transferee, and unless such tax is collected, the executor, administrator, or trustee may not deliver or be compelled to deliver any property to a transferee.

(b) In the case of a legacy charged upon or payable out of real property, the heir or devisee is to deduct the transfer inheritance tax from the legacy and pay such tax over to the executor, administrator, or trustee who may enforce the payment of such tax in the same manner as the payment of such legacy may be enforced.

(c) In the case of a legacy given to a person in money for a limited period, the executor, administrator, or trustee is to retain the transfer inheritance tax due for the entire amount of money transferred; however, if such legacy is charged upon or payable out of property, other than money, the executor, administrator, or trustee, may, if he or she believes the same to be necessary, apply to the court having jurisdiction of his or her accounts to make an apportionment of the sum to be paid him or her by the legatee for the tax.

(d) An executor, administrator, or trustee may, if necessary, sell so much of the property of a decedent as is necessary to pay the New Jersey transfer inheritance tax due on the transfer of such property.

N.J. Admin. Code § 18:26-10.3

Adopted by 50 N.J.R. 1624(a), effective 7/16/2018