N.J. Admin. Code § 18:26-2.13

Current through Register Vol. 56, No. 11, June 3, 2024

Section 18:26-2.13 - Composition or compromise of taxes on certain transfers

(a) In the case of a transfer or transfers made subject to a contingency or condition that renders a definite determination of the transfer inheritance tax due impossible, the Transfer Inheritance Tax Branch may enter into a composition or compromise of the tax based upon the immediate payment and final disposition of the tax.

(b) The composition or compromise of the tax is determined after a consideration of the amount of taxes that may become due as a result of the various contingencies or conditions, the present values thereof and the probability of the occurrence of the contingencies or conditions to which the transfers are subject. The purpose of a compromise is to permit an immediate, fair, and equitable adjustment of the tax due, rather than holding the liability for taxes suspended for an indefinite period.

(c) The payment of the taxes provided for in such compromise shall be conclusive in favor of the executor or trustee as against the interests of such cestui que trust as may possess present rights of enjoyment, or fixed, absolute, or indefeasible rights of future enjoyment, or of such rights as would possess in the event of the immediate termination of a particular transfer.

(d) The composition or compromise permitted under this section refers only to the transfer inheritance tax on transfers subject to contingencies or conditions.

N.J. Admin. Code § 18:26-2.13

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