SUBCHAPTER 5. TRANSFERS SUBJECT TO TAX
N.J.A.C. 18:26-5.8 (2014)
§ 18:26-5.8 Transfers taking effect in possession or enjoyment at or after death
(a) Any transfer of property by deed, grant, bargain, sale, gift or in trust (except in the case of a bona fide sale for an adequate valuable consideration in money or money's worth) made by a decedent transfer or during his lifetime under which he has retained for his life or for any period not ascertainable without reference to his death or for any period which does not in fact end before his death:
1. The possession or enjoyment of the property so that possession or enjoyment of the property can be obtained only by surviving the transferor; or
2. The right to income from the property, is a transfer subject to the New Jersey inheritance tax.
(b) The transfer is taxable if by any means whatsoever the transferor has in form transferred property but has deferred the actual possession, use or enjoyment of the property until a time which can only be measured by reference to the transferor's death.