09 Feb Do we need state forms before paying out this inheritance?

Q. Our family member’s New Jersey inheritance tax form was filed with the state, and the overpayment was refunded to the estate account within four months. However, a Form 0-1 waiver has not been received by the executor, so the estate funds cannot be released to the beneficiaries yet. Should that waiver have accompanied the refund? If not, is there any way to determine the status of the Form 0-1?
— Beneficiary

A. We’re sorry to hear about the loss of your family member.

Finalizing an estate can be complicated and time-consuming.

The “Notice of Assessment” confirming the tax due, if any, and the waivers, Form 0-1, usually will be sent to you together once the inheritance tax return is reviewed or audited, said Catherine Romania, an estate planning attorney with Witman Stadtmauer in Florham Park.

She said this generally takes three months to as much as one year.

However, she said, if you have indicated an overpayment of the tax due, the state will refund the overpayment without even reviewing or auditing the return before the later of six months of the due date of filing the return or six months of receipt of the return so that interest to be paid by the state will not accrue on the overpayment.

You may want to check on the status of the waivers by contacting the New Jersey Division of Taxation at (609) 292-5033 or by email at .

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This story was originally published on Feb. 9, 2022. 

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