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  • NJ A295
  • Eliminates transfer inheritance tax for step-grandchildren.
In Committee
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill would eliminate the State's transfer inheritance tax for step-grandchildren of a decedent by treating such persons the same as a decedent's grandchildren under the New Jersey Transfer Inheritance Tax Act, R.S.54:33-1 et seq. Currently, step-grandchildren are treated as Class D beneficiaries under subsection d. of R.S.54:34-2 since they do not fall within any of the other statutory classes of beneficiaries (Classes A and C; subsections a. and c.) set forth in that section of law. As such, the step-grandchildren of a decedent are subject to a transfer inheritance tax of 15% on any property transfer of an amount up to $700,000, and 16% on any property transfer in excess of that amount. This is not the case with a decedent's grandchildren. Such persons, being the "issue of any child or legally adopted child of a decedent," are considered to be Class A beneficiaries under subsection a. of R.S.54:34-2, and thus are not subject to any transfer inheritance tax pursuant to the provisions of that section of law. Under the bill, step-grandchildren, i.e., the issue of any stepchild of a decedent, would be treated like grandchildren with respect to a decedent's property transfer, and thus be considered Class A beneficiaries subject to no taxation.
Not specified
Introduced, Referred to Assembly Appropriations Committee  (on 1/27/2016)
Date Chamber Action Description
1/27/2016 A Introduced, Referred to Assembly Appropriations Committee
Date Motion Yea Nay Other
None specified