18:26-8.12 Life estate in realty held by the entirety
(a) When real property is devised or transferred to a husband and wife/civil union couple as tenants by the entirety each having a vested life estate in common with the other for their joint lives with a vested estate in fee in the entire remainder subject to defeasance, as to the one first dying, the value of such property for New Jersey Inheritance Tax purposes, is ascertained as follows:
1. A life estate is computed on the basis of the lesser life expectancy of the devisees or grantees and the value so determined is considered as immediately vested in equal shares, and subject to tax accordingly.
2. The remainder is treated as contingent and a compounded (compromise) tax is suggested in accordance with N.J.S.A. 54:36-6, based upon the following alternatives:
i. The tax chargeable if the devisee or grantee against whom the lower rate of tax would apply survives;
ii. The tax chargeable if the devisee or grantee against whom the higher rate of tax would apply survives;
iii. The tax chargeable determined on the basis that the devisees or grantees will share the remainder equally as the result of a sale of the realty or the entry of a judgment of divorce.
(a) When real property is devised or transferred to a husband and wife/civil union couple as tenants by the entirety each having a vested life estate in common with the other for their joint lives with a vested estate in fee in the entire remainder subject to defeasance, as to the one first dying, the value of such property for New Jersey Inheritance Tax purposes, is ascertained as follows:
1. A life estate is computed on the basis of the lesser life expectancy of the devisees or grantees and the value so determined is considered as immediately vested in equal shares, and subject to tax accordingly.
2. The remainder is treated as contingent and a compounded (compromise) tax is suggested in accordance with N.J.S.A. 54:36-6, based upon the following alternatives:
i. The tax chargeable if the devisee or grantee against whom the lower rate of tax would apply survives;
ii. The tax chargeable if the devisee or grantee against whom the higher rate of tax would apply survives;
iii. The tax chargeable determined on the basis that the devisees or grantees will share the remainder equally as the result of a sale of the realty or the entry of a judgment of divorce.
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