18:26-11.16 Blanket waiver

N.J.A.C. 18:26-11.16 (2014)
§ 18:26-11.16 Blanket waiver

   (a) Notwithstanding any other section contained in this chapter, regarding the release of funds; any banking institution, trust company or safe deposit company organized under the laws of this State; national bank operating in this State, building and loan or savings and loan association organized in this State; or credit union chartered by the United States and operating in this State; corporation or person may release any amount up to 50 percent of the entire amount of funds on hand held in deposit, which belong to or stand in the name of a resident decedent or in the joint names of such decedent and one or more other persons, to:

1. An executor;

2. Administrator;

3. Legal representative of the decedent;

4. Surviving joint tenant;

5. Cestui que trust; or

6. The estate of a minor where title to said funds are held in the name of a custodian for said minor, without the written consent of the Director, upon the application of such proper party to the institution, association, organization, corporation or person above mentioned.

(b) The provisions of this section apply to each institution, association or organization, corporation or person listed above with whom a decedent has any funds on deposit, including Certificates of Deposit, and is limited to no more than 50 percent of the funds in the entire account whether such account is held in the decedent's name only or jointly with another so that where the decedent holds an account jointly, only one half of the funds may be released, not the half claimed by the joint owner and an additional half of the funds belonging to the decedent.

(c) In addition to the amount permitted to be released by an institution, association, organization, corporation or person mentioned in this section, institutions, associations, organizations, corporations, or persons may, without written consent of the Director:

1. Pay any and all checks drawn on any account owned by a decedent individually, jointly, or otherwise, when said checks are issued prior to death and presented for payment within 10 days following the decedent's date of death; except that in the event an executor, administrator, or other proper party above mentioned in this section shall apply for a release of 50 percent of the funds on deposit after 10 days from the decedent's death, the institution, association, organization, corporation, or person mentioned in this section holding the funds shall after having deducted the amount of any checks issued prior to and presented for payment within 10 days of the decedent's death, release 50 percent of the balance in a decedent's account to the proper party upon application and without the written consent of the Director;

2. Pay any checks in any amount for which there are sufficient funds held in deposit, drawn on any account owned by a decedent individually, jointly or otherwise, representing full or partial payment of any New Jersey Transfer Inheritance or Estate Taxes and made payable to New Jersey Inheritance and Estate Tax;

3. Liquidate the loan of any decedent who has pledged the pass book representing a savings account as collateral for a loan, where upon the death of such a decedent the loan is in default and then make 50 percent of the remaining funds available under the blanket waiver; but

(d) Securities of a New Jersey Corporation registered in the name of a decedent and issued by any bank, or savings and loan association situated in this State, are not subject to the Blanket Waiver rule provided for in this section. Therefore, the written consent of the Director must be obtained in order to transfer or release such assets.

(e) The Director reserves the right to direct, at any time that any sum or sums not yet paid over shall be withheld by the informant pending further order of the Director where that course is deemed imperative to protect the interest of the State.

18:26-11.15 Certain small estates not subject to waiver

N.J.A.C. 18:26-11.15 (2014)
§ 18:26-11.15 Certain small estates not subject to waiver

   (a) If the gross estate of a resident decedent which for tax purposes does not exceed $ 5,000 where the applicant is the spouse/civil union partner of the decedent or $ 200.00 where another person is the applicant, and the spouse/civil union partner or other applicant furnishes a bank, savings institution, or a savings and, loan association with an affidavit in lieu of administration which has been obtained from the Surrogate of the County wherein the decedent died a resident, such bank, institution or association may release the funds on deposit to the credit of a resident decedent without the written consent of the Director upon the spouse/civil union partner or other applicant executing Form 0-80 or 0-83.

(b) Form 0-83, used by a spouse/civil union partner or Form 0-80, used by any other applicant, is to be obtained only from a bank, savings institution or savings and loan association and executed concurrently with the release of any funds. Every bank institution or association is required to obtain such forms directly from the Transfer Inheritance Tax Section of the Individual Tax Audit Branch, PO Box 249, Trenton, New Jersey 08695-0249, and is further required to obtain the following information from each applicant before the release of any funds to be assured that the total assets of the estate are less than $ 5,000 or $ 200.00 as the case may be:

1. The total amount on deposit in all bank accounts wherever situated, whether in the name of the decedent individually, jointly, or in trust for another;

2. The total redemption value of any United States Savings Bonds title to which is held in the name of the decedent either individually, jointly, or payable on death to another;

3. The total value of any tangible property owned by the decedent such as automobiles, jewelry and household goods;

4. The total value of any benefits paid or payable under a group annuity plan, retirement plan, or profit sharing plan of decedent's employer;

5. Whether the decedent was the lessee of a safe deposit box individually or jointly; but (see (c) below).

(c) The provisions of this section do not apply and therefore, except as provided under the Blanket Waiver, (see N.J.A.C. 18:25-11.16) a bank, savings institution, or savings and loan association is prohibited from releasing any funds of a resident decedent where:

1. Letters of testamentary or of general administration have been or are to be issued;

2. The decedent was the lessee, individually or jointly, of a safe deposit box;

3. There will be payable either to the estate of the decedent or to a beneficiary, any amount under a group annuity plan, retirement plan, or profit sharing plan;

4. The decedent has made a transfer of property within three years of the date of death without having received equal financial consideration therefor; and (see (d) below).

(d) In determining the value of a gross estate for tax purposes, under this section, the entire amount of any funds on deposit to the credit of a resident decedent in any bank, savings institution or savings and loan association, including the full value of any United States Savings Bonds must be included in the total value of such decedent's estate even though title to any such items is held jointly by the decedent and another; and (see (e) below).

(e) This section does not apply to the estate of any nonresident decedent or to the estate of a decedent which is administered under the provision of N.J.S.A. 3A:6-5, where the value thereof for tax purposes, exceeds $ 5,000 or $ 200.00 as the case may be.

 

18:26-11.14 Exempt property not subject to waiver

N.J.A.C. 18:26-11.14 (2014)
§ 18:26-11.14 Exempt property not subject to waiver

   The written consent of the Director is not required for the transfer of any property exempt or not includible for purposes of the New Jersey Transfer Inheritance Tax Act and the New Jersey Estate Tax Act. The property sought to be treated as exempt for purposes of the State death transfer tax statutes must not be includible in the gross estate of the decedent regardless of whether the tax at issue is the New Jersey Estate Tax or the New Jersey Inheritance Tax.

18:26-11.13 Transfer of tangible or intangible personal property

N.J.A.C. 18:26-11.13 (2014)
§ 18:26-11.13 Transfer of tangible or intangible personal property

   (a) A waiver is not required in order to transfer all other tangible or intangible personal property, including but not limited to:

1. Wages;

2. Salaries;

3. Vacation and sick leave pay;

4. Payment under pension, profit sharing, bonus plans or stock purchase plans;

5. All automobiles;

6. Mortgages;

7. Accounts Receivable;

8. Household goods;

9. Personal effects;

10. Funds held in an account in the name of a funeral director in trust for a decedent in accordance with the provisions of N.J.S.A. 2A:102-13 (advance funeral payment);

11. Funds to a decedent's credit in a Credit Union plan organized under N.J.S.A. 17:13-26 et seq. in addition to any matching sums paid under any type of Credit Union plan in the form of a life insurance where said matching sum is directed to be paid to a decedent's estate or his executor or administrator. However, funds held under the Federal Credit Union Act must be reported and a waiver obtained.

(b) Any property, the transfer of which is not subject to first obtaining a waiver, must, nevertheless, be reported on a decedent's return.

(c) Transfer of property held by revocable and irrevocable trusts may be taxable pursuant to N.J.S.A. 54:34-1c either as transfers intended to take effect at or after death or as transfers made in contemplation of death. Waivers are not issued for these transfers, but property must be properly reported in accordance with subsection (b) of this section.

18:26-11.12 Transfer of assets held by nonresident custodian

N.J.A.C. 18:26-11.12 (2014)
§ 18:26-11.12 Transfer of assets held by nonresident custodian

   A waiver is not required in order to transfer any assets held by a nonresident custodian on behalf of a resident or nonresident decedent.

18:26-11.11 Transfer of partnership interest

N.J.A.C. 18:26-11.11 (2014)
§ 18:26-11.11 Transfer of partnership interest

   The written consent of the Director is not required for the transfer of real or personal property, tangible or intangible, owned by a bona fide partnership in which a decedent had an interest.

18:26-11.10 Transfer from joint fiduciaries to successors

N.J.A.C. 18:26-11.10 (2014)
§ 18:26-11.10 Transfer from joint fiduciaries to successors

   Bonds and/or stock of a New Jersey corporation or a national bank located in New Jersey or any money deposited in any trust company, bank or other institution in the names of two or more fiduciaries as executors, administrators, trustees or guardians, may, upon the death of one or more of such fiduciaries, be transferred without a New Jersey Transfer Inheritance Tax and a New Jersey Estate Tax waiver, to, or on the order of, the surviving fiduciary or fiduciaries.