Kenneth Vercammen & Associates, P.C.
2053 Woodbridge Ave.
Edison, NJ 08817
(732) 572-0500

Friday, June 6, 2014

18:26-1.1 Definitions

N.J.A.C. 18:26-1.1 (2014)

§ 18:26-1.1 Definitions

   The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise:

"The Act", "The Law" or "The Tax Act" means Chapters 33-38 of Title 54 of the Revised Statutes of New Jersey.

"Blanket waiver" means the general written consent of the Director issued by regulation permitting banks, trust companies, savings institutions, building and loan and savings and loan associations operating in this State, to transfer up to 50 percent of any shares held for or of the total funds on deposit to the credit of a deceased resident of this State, either individually as a co-depositor, trustee, agent, cestui que trust, or in any other capacity, prior to the final payment of the tax and in the absence of a formal waiver. The blanket waiver also authorizes the release of an amount in addition to the said 50 percent, called for by a check or checks made payable to New Jersey Inheritance and Estate Tax, in payment of transfer inheritance taxes chargeable.

"Civil union couple" means the legally recognized union of two eligible individuals of the same sex established pursuant to P.L. 2006, c. 103, partners of which shall receive the same benefits and protections and be subject to the same responsibilities as spouses in a marriage.

"Civil union partner" means a person who has established a civil union pursuant to the provisions of P.L. 2006, c. 103.

"Class A transferee" means any of the following:

1. A father, mother, grandparent, grandchildren, husband, wife, civil union partner or domestic partner;

2. A child or children of a decedent, including any stepchild of a decedent or child or children adopted by a decedent in conformity with the laws of this State, or of any of the United States or of a foreign country. A Class A transferee shall also include a non-biological child of a decedent where the child was the offspring of a biological parent partner conceived by the artificial insemination of that parent during the term of a civil union or domestic partnership with the decedent unless it is otherwise shown that the non-biological parent had not intended to be the parent of the child;

3. The issue of any child or legally adopted child of a decedent; or

4. Any child to whom the decedent for not less than 10 years prior to the transfer stood in the mutually acknowledged relationship of a parent, provided the relationship began at or before the child's 15th birthday and was continuous for 10 years thereafter. This applies to persons who were taken into the household and reared as children of the decedent, but who were never legally adopted by the decedent.

"Class C transferee" means any of the following:

1. A brother or sister of a decedent;

2. A wife/civil union partner or widow/surviving civil union partner of a son of a decedent; or

3. A husband/civil union partner or widower/surviving civil union partner of a daughter of a decedent.

"Class D transferee" means any other transferee, distributee or beneficiary who is not a Class "A" or "C" or "E" transferee.

"Class E transferee" means any of the following:

1. The State of New Jersey or any political subdivision thereof;

2. Any educational institution, church, hospital, orphan asylum, public library or Bible and tract society or to, for the use of or in trust for any institution or organization organized and operated exclusively for religious, charitable, benevolent, scientific, literary or education purposes, including any institution instructing the blind in the use of dogs as guides, no part of the net earnings of which inures to the benefit of any private stockholder or other individual or corporation; provided, that the exemption does not extend to transfers of property to such education institutions and organizations of other states, the District of Columbia, territories and foreign countries which do not grant an equal and like exemption of transfers of property for the benefit of such institutions and organizations of this State.

"Clear Market Value" means the market value of any property included in any transfer, less any deductions allowable under the law.

"Director" means Director, Division of Taxation in the Department of the Treasury, State of New Jersey. (See, N.J.S.A. 52:27B-48, 49; 52:18A-25, 24.)

"Domestic partner" means an individual who is in a relationship that satisfies the definition of a domestic partnership as set forth in the Domestic Partnership Act, P.L. 2003, c. 246.

"Estate and Property" means the interest of the testator, intestate, grantor, bargainor or vendor, passing or transferred to the individual or specific legatee, devisee, heir, next of kin, grantee, donee or vendee, not exempt from the provisions of the Act, whether such property be situated within or without this State and includes family partnership interest or family limited partnership interest.

"Gross Estate" means the value, as of the date of a decedent's death of all property wherever situated, which is included in the decedent's estate for inheritance tax purposes.

"Market Value--Date Determined" means the value of property as of the date of death of the transferor, whether or not the transfer was made during the lifetime of the transferor.

"Person" means any individual, domestic partner, corporation, organization, association, partnership or any other entity.

"Proper representative of the estate" means the appropriate representative as determined under the estate administration statutes, N.J.S.A. 3B:1-1 et seq.

"Transfer" means and includes the passing of property or any interest therein, in possession or enjoyment, present or future, by distribution by statute, descent, devise, bequest, grant, deed, bargain, sale or gift.

"Transferee" means any person to whom a transfer is made, and includes any legatee, devisee, heir, next of kin, grantee, donee, vendee, assignee, successor, or survivor or beneficiary.

"Waiver" means the written consent of the Director permitting the transfer of one or more assets held in the name of a decedent or a decedent and others.


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