NJ Inheritance tax deductions for Expenses
INSTRUCTIONS FOR SCHEDULE “D”
FUNERAL EXPENSES:
Cemetery Plot (immediate family)
Funeral Luncheon
Flowers
Minister/Rabbi/Priest/Imam
Monument/Lettering
Funeral Costs
Acknowledgments
ADMINISTRATION EXPENSES:
Appraisal of real estate
Appraisal of personal effects
Surrogate’s fees
Probate expenses
Fee to notify creditors
Death certificates
Telephone tolls
Cost of Executor’s or Administrator’s Bond
Collection costs
Court costs
Cost on recovery and/or discovery of assets
Realty commissions in accordance with
N.J.A.C. 18:26-7.12
Storage of property if delivery
DEBTS OF DECEDENT OWING and
UNPAID AT TIME OF DEATH:
Personal accounts
Judgments
Federal income and gift taxes generally
Unpaid mortgage principal and interest on the decedent’s
date of death:
Charitable pledges
State, county and local taxes accrued before death
Unpaid Inheritance Tax on interrelated estate
INSTRUCTIONS FOR SCHEDULE “D”
If any notes, brokerage accounts or other claims are secured by collateral, describe the collateral pledged, with
its value as of the date of death of the decedent and state whether or not said collateral is included among the assets
disclosed in Schedule B or B(1). If collateral is not pledged, state after each loan “No collateral pledged”.
NOTE: No debt or claim is to be listed in this schedule unless still owing and unpaid at the time of death and unless
such debt or claim is to be paid out of the assets of the estate.
(EXAMPLE: That portion of medical bills paid or reimbursed by Medicare or other medical insurance
should not be claimed on this schedule).
Contested claims must be explained in detail. Do not list any taxes, either real, personal or income, chargeable
for any period subsequent to date of death; nor any claim against property located outside of New Jersey, unless such
property is subject to tax in this state.
The estate agrees to advise the Division if the amount actually paid in settlement of any fee, commission or debt
is greater or less than the estimated amount allowed and further agrees to the correction of the assessment, if
necessary.
For mortgages list the balance on the decedent's date of death and the property in Schedule A on which the
mortgage is an encumbrance. Each mortgage must be listed separately. State whether there was any mortgage
insurance and, if so, submit verification as to the amount of same. Note: In the case of realty held by a decedent
and a surviving spouse/civil union partner as tenants by the entirety, the amount of any mortgage owing on such
realty at the decedent’s death is not allowable as a deduction since such property is exempt from the Inheritance Tax.
Examples of Non-Allowable Deductions
Contingent liabilities
Debts paid by insurance
Medical expenses paid prior to death
Liabilities of corporation of which decedent was a
shareholder
Real estate and property maintenance costs
Storage expense
State, county and local taxes accruing after date of death
Transfer Inheritance Tax
Real estate brokers commissions, except if real property sold
during administration of estate
Debts on property located outside of New Jersey
Federal Estate Tax
Interest accrues at the rate of 10% per annum on any direct
tax or portion thereof not paid within eight months of the
decedent’s death.
