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  • NJ A4635
  • Maintains eligibility for veteran's property tax deduction when property is placed in trust.
Introduced
(2/27/2017)
In Committee
(2/27/2017)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
Current law requires a veteran who has filed a claim for a veteran's property tax deduction to have legal title (i.e., full or partial ownership interest) to the property for which the deduction is claimed. The statute governing the veteran's property tax deduction also extends eligibility for the deduction to properties held in trust for qualified claimants. Section 9 of P.L.1963, c.171 (C.54:4-8.15) provides that the right to claim a veteran's deduction extends to property title which is held by a guardian, trustee, committee, conservator, or other fiduciary for any person for who would otherwise be entitled to claim such benefit. When a trust is established, the trust creator, or trustor, gives property to another party, the trustee, who has an fiduciary duty to keep or use the property for the benefit of a third party, the beneficiary. The ownership rights to the property transfer from the trustor to the trustees. Because a veteran who places their property in trust is no longer the property owner, they would lose the right to the property tax deduction. In order to maintain eligibility for the veteran's property tax deduction when a property is placed in trust, the trust is required to provide the veteran with a life tenancy or life estate to the property. A life estate entitles the occupant (the veteran claimant) to all the rights of ownership during the term of the life tenancy, but subjects the property to the trustor's estate tax. This bill extends eligibility for the veteran's property tax deduction to veterans who do not qualify for the deduction, or who lose eligibility for the deduction, if they are not provided with a life tenancy or life estate when their property is placed in a trust. The bill requires a veteran to continue to occupy the property as their primary residence. The bill also requires the veteran to annually certify their continued occupancy of the property to the municipal assessor on a form promulgated by the Director of the Division of Taxation. It is the sponsor's belief that a veteran should not have their property tax benefits taken away if they decide to place their property in a trust in order to protect their family while continuing to occupy the property.
Not specified
Introduced, Referred to Assembly State and Local Government Committee  (on 2/27/2017)
 
 

Date Chamber Action Description
2/27/2017 A Introduced, Referred to Assembly State and Local Government Committee
Date Motion Yea Nay Other
None specified