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The short answer is no, you will not be taxed on the inheritance.

"This is the case as long as the amounts don't exceed the Federal or State limits which can differ. They can also differ from state to state.

A probate lawyer will know these limits and what laws apply for your particular case."


Exploreguy, I'd like to respectfully suggest not all estates need a probate lawyer. Tom is asking a tax question that is perhaps better answered by a CPA than an attorney. He already expressed his intent to consult with a tax professional, which seems appropriate. Now if Tom had a question about how to get title of mom's investments transferred to his name a probate lawyer might be the appropriate referral.

So I looked it up. From the NJ state site:
http://www.state.nj.us/treasury/taxation/index.html?ot7.htm~...
"New Jersey imposes a transfer Inheritance Tax, at graduated rates, on property having a total value of $500 or more which passes from a decedent to a beneficiary."

"If a decedent's death occurs on or after January 1, 1985, property passing to a surviving spouse is entirely exempt from the tax. If a decedent's death occurs on or after July 1, 1988, property passing to a decedent's surviving parents, grandparents, children, stepchildren or grandchildren is entirely exempt from the tax. If a decedent’s death occurs on or after July 10, 2004, property passing to a surviving domestic partner (Domestic Partnership Act) is entirely exempt from tax. If a decedent’s death occurs on or after February 19, 2007, property passing to a surviving civil union partner is entirely exempt from tax."

So again, the short answer is no, there is no tax due on the inheritance of this mother's house by her children.

Regards,

Vic
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