inheritance to grandkids

Submitted by Douglas Bauerband on Fri, 2017-05-05 18:44

Grandfather left inheritance 4 ways. To his two daughter and two children of the one daughter.

the two daughters are A beneficiary’s and the two grandkids are D beneficiary’s.

a. the two grandkids have to pay 15% inheritance tax in NJ, correct?

b. Can the two grandkids sign a disclaimer so they don’t have to pay the inheritance tax?

c. Can the two daughters, after the disclaimers are filed, give a gift of 500k to their kids?

d. there is a form to sign if you give your kids a large gift that goes to your life time exemption, is there not and can the daughters file that form so the grandkids don’t pay taxes on the 500k?

Thank you for any help
Douglas



Submitted by Bruce Steiner on Fri, 2017-05-05 19:53

  • I assume from your other thread that the decedent was in New Jersey.
  • a.  No.  A grandchild is Class A, and thus exempt from New Jersey inheritance tax.
  • b. They can disclaim if they want.  However, as set forth above, grandchildren are exempt from New Jersey inheritance tax.  Before disclaiming, they should check to see who would get the disclaimed property.
  • c.  They can make gifts to anyone they want.
  • d.  The donor would file a gift tax return to report the gift.  The gift would count against the donor’s $5,490,000 estate and gift tax exclusion amount.

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