20 Apr Must executor wait before selling a deceased person’s home?

Q. Is there any way that I, as executor, can sell real property — the home of the decedent — prior to receiving a waiver from the New Jersey Division of Taxation? For example, can the title company hold a portion of sale proceeds to protect the state’s inheritance tax interests. The estate is incurring tax and utility expenses with regard to the home while I am trying to get a handle on the decedent’s IRA and stock holdings. There is an interested buyer.
— Executor

A. Taking on the role of executor is a very important responsibility.

As such, we’re glad you asked.

And we have good news.

An executor can sell real property prior to receiving a tax clearance waiver from the New Jersey Division of Taxation, said Shirley Whitenack, an estate planning attorney with Schenck, Price, Smith & King in Florham Park.

“Generally, the title company will hold a substantial portion of the sales proceeds in escrow pending the issuance of the tax waiver,” she said.

Good luck with the sale and settling the estate.

Email your questions to Ask@NJMoneyHelp.com.

This story was originally published on April 20, 2022.

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