27 Jan Will I owe inheritance tax on my deceased mother’s house?

Q. I am a resident of Florida. My mother passed away and left a house in New Jersey to me, my brother and sister. Upon the sale, will I owe the New Jersey inheritance tax?
— Beneficiary

A. We’re sorry to hear about your mother.

Children who inherit property from a New Jersey resident decedent do not owe New Jersey inheritance tax.

The inheritance tax is based on the beneficiary’s “class,” said Catherine Romania, an estate planning attorney with Witman Stadtmauer in Florham Park.

She said Class “A” beneficiaries include a spouse, civil union or domestic partner, parents, grandparents, descendants, stepchildren (but not step-grandchildren), and mutually-acknowledged children.

Class “A” beneficiaries do not incur an inheritance tax, she said.

All other beneficiaries may incur an inheritance tax.

“Class `C’ beneficiaries include a sibling, or a son-in-law or daughter-in-law and are entitled to the first $25,000 of inheritance free of tax,” Romania said. “All other beneficiaries — other than the State of New Jersey and charities — are Class `D’ beneficiaries and are taxed on inheritances of $500 or more.”

When owed, the tax is due eight months after death, regardless of the timing of the sale of the decedent’s property, she said.

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This story was originally published on Jan. 27, 2021.

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