§ 18:26-10.4 Deduction or collection of tax before distribution
(a) An executor, administrator or trustee having charge or holding in trust any property subject to the New Jersey Inheritance Tax for distribution is to deduct from such property the Inheritance Tax assessed and levied on the transfer prior to distribution to the transferee. In the event the property to be transferred is not money, however, the executor, administrator or trustee is to collect the Inheritance Tax assessed and levied from the person entitled to the property prior to delivering such property to the transferee, and unless such tax is collected, the executor, administrator or trustee may not deliver or be compelled to deliver any property to a transferee.
(b) In the case of a legacy charged upon or payable out of real property, the heir or devisee is to deduct the Inheritance Tax from the legacy and pay such tax over to the executor, administrator or trustee who may enforce the payment of such tax in the same manner as the payment of such legacy may be enforced.
(c) In the case of a legacy given to a person in money for a limited period, the executor, administrator or trustee is to retain the Inheritance Tax due for the entire amount of money transferred; however, if such legacy is charged upon or payable out of property, other than money, the executor, administrator or trustee, may, if he believes the same to be necessary, apply to the court having jurisdiction of his accounts to make an apportionment of the sum to be paid him by the legatee for the tax.
(d) An executor, administrator or trustee may, if necessary, sell so much of the property of a decedent as is necessary to pay the New Jersey Inheritance Tax due on the transfer of such property.
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