Inheritance tax

[curiousgeorge]

Hello Tax Experts,

Inheritor lives in NY. Decedent's resident state is NJ. Does inheritor pay inheritance tax to NJ?

Thanks.

Also, am attaching below link - maybe of interest to some folks.
finance.yahoo.com/focus-retirement/article/112142/estate-taxes-worst-places-to-die?mod=fidelity-managingwealth&cat=fidelity_2010_managing_wealth

[Deleted]

Inheritors do not pay inheritance tax... estate taxes are paid by the estate before the inheritance comes to the inheritor...

It does get complicated sometimes with stocks and real estate and stepped up bases, etc. But generally speaking, you don't pay... the estate does... most estate taxes are federal... if there is state, its the state the estate is in...

I'm not an expert though... maybe you should wait for one of those guys...

[mwcpa]

curious....

While NJ calls the tax an "inheritance" tax it is effectively an estate tax paid by the estate. The tax is based on "who" gets the bequest. Estate gifts to a child has one tax rate, a spouse another, and a friend yet another.

"Inheritance" and estate taxes in NJ are generally borne by the estate, but there can be situations where the "inheritor" pays the tax (transfer liability situations)

[Deleted]

My grandmother died last February She was a resident on NJ. My mother was the executrix of the estate but I helped her out through the process. NJ is not a good place to live if you have a sizable estate.

But if you have any questions about the process, I could help you out as best as I can.

[curiousgeorge]

Thank you ALL!