Legal Question in Tax Law in New Jersey

Real Estate property transfer tax

Residential property was transferred into a revocable trust.The owner is 65 yrs of age, living in the home as his permanent residence. When the property is sold, is the transfer tax based on the $1.00 per $1000 Senior citizen rate or the $3.50 rate per $1000


Asked on 2/22/00, 8:57 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Real Estate property transfer tax

If this was a Grantor- Trust (Grantor makes a revocable trust exclusively for his/her benefit - the senior exemption may apply - but the Clerk/Register may argue that placing the property in trust name removes eligibility for the lower rate.

Call the local recording office and ask how the Affidavit of Consideration (this is a separate document attached to the Deed where the claim for lower fee is requested and provides the basis for the lower fee) should be completed -

I think the new registration in the trust will require the higher fee - nerver hurts to ask though.

Walter

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Answered on 2/26/00, 6:08 pm


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