TAX RETURN FILING REQUIREMENTS FOR ESTATES
AND
TRUSTS
New Jersey Estate Tax Return Form IT-ESTATE – an estate tax is imposed on any estate in which the gross estate exceeds $ 675,000, in which case a tax return must be filed.(NJ 54:38-1c). This return is due nine months after the date of death.
New Jersey
Inheritance Tax Return
Form
NJ
-ITR – an inheritance tax is imposed on any estate where assets are transferred to anyone other than the decedent’s lineal descendants (children, grandchildren, etc). Therefore, if assets are transferred to the decedent’s brother, sister, aunt, uncle, niece, nephew, friend or any other non-lineal descendant, a New Jersey Inheritance Tax return must be filed.
Federal Estate Tax Return Form 706 – must be filed for every estate where the gross estate exceeds $ 2 million for decedents dying in 2006, 2007 and 2008 (IRC Section 6018(a)). This return is due nine months after the date of death.
Income Tax Returns for Estates (Form 1041) – must be filed for every estate where the income exceeds $ 600 in any given year. (IRC Section 6012(a)(4)). These returns are due on April 15th each year.
Income Tax Returns for Trusts (Form 1041) – must be filed for every trust if there is any taxable income, or if the gross income is $ 600 or more, regardless of the amount of taxable income (IRC Section 6012(a)(3)). These returns are due on April 15th each year.
Gift Tax Returns Form 709 – must be filed by the individual donors for gifts exceeding $ 12,000 per person; the return must also be filed if the individual donor elects to split the gift with his spouse (IRC Section 6019).
PERSONAL LIABILITY OF FIDUCIARY
Federal Law: Any fiduciary who pays any debt due by the decedent or the estate, in whole or in part, before federal tax obligations are satisfied becomes personally liable for the tax of the estate to the extent of those payments. (IRC Reg Sec. 1.641(b)-2)
New Jersey
Law: Executors, administrators, trustees…shall be personally liable for any and all such taxes until paid as hereinafter directed, for which an action at law shall lie in the name of the state of
New Jersey
.
(N.J. 54:35-2)
