New Jersey Law Journal
February 17, 2020
The New Jersey Supreme Court affirmed an Appellate Division ruling holding that the entire value of a residence placed in a single irrevocable trust was subject to the inheritance tax, and rejecting the estate's argument that it was entitled to a 50% refund of the tax it had paid.
Allan Bell, Chair of the Sills Cummis & Gross Trusts and Estates Practice, "said the ruling would not have wide impact because it concerned the state’s inheritance tax, which applies to inheritances by nieces, nephews and other distant relatives. Cases involving such 'class D' relatives are uncommon, he said. The state’s estate tax, which applied to inheritances by spouses, children, parents and other close relatives, was abolished in 2018. In addition, the type of trust used by the Van Ripers is not widely seen, Bell said."