Bill > A4908

Introduced Session

This bill eliminates the State's transfer inheritance tax for the step-grandchildren of a decedent by treating step-grandchildren the same as a decedent's stepchildren and 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 because 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 Class D beneficiaries, step-grandchildren of a decedent are subject to a transfer inheritance tax of: 15 percent on any property transfer of an amount up to $700,000; and 16 percent on any property transfer in excess of that amount. By contrast, the grandchildren of a decedent, being the "issue of any child or legally adopted child of a decedent," are classified as 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. Transfers to stepchildren are likewise treated as Class A beneficiaries and exempt from any transfer inheritance tax under R.S.54:34-2.1. Under the bill, step-grandchildren, i.e., the issue of any stepchild of a decedent, would be treated like stepchildren and grandchildren with respect to a decedent's property transfer, and thus be considered Class A beneficiaries subject to no taxation.

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Paul Kanitra (R)*,  Michael Inganamort (R), 

Introduced, Referred to Assembly Judiciary Committee (on 10/17/2024)

Official Document