By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold, NJ Estate Probate Administration Attorney

The inheritance tax statute N.J.S.A. 54:34-5 allows for deductions to be made when determining the value of the property being transferred from an estate, which ultimately affects the amount of inheritance tax due by the estate. The statute allows for deductions for “a reasonable sum for funeral expenses and last illness” and “the ordinary expenses of administration including the ordinary fees allowed executors and administrators and the ordinary fees of their attorneys.” The NJ inheritance tax return lists examples of what constitutes “funeral expenses” and “administration expenses” allowed by law in determining the deductions the estate can take.

N.J.S.A. 3B:1-1 defines “claims” of an estate as “liabilities whether arising in contract, or in tort or otherwise, and liabilities of the estate which arise at or after the death of the decedent, including funeral expenses and expenses of administration.” So the law recognizes mileage, postage and those types of expenses as permissible deductions and liabilities of the estate and the inheritance tax return instruction form is a more specific guide of what the statute contemplates.

To discuss your NJ Estate Probate Administration matter, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.com.  Please ask us about our video conferencing consultations if you are unable to come to our office.