Legal Question in Wills and Trusts in New Jersey

I have a A PROBLEM. My aunt recently passed away and my cousin her son has been appointed by the surrogate court to handle her estate.

I have lent my aunt a considerable amount of money- One account, savings "in trust for " me totally. Two small accounts one, money market and a savings account - WITH BOTH OUR NAMES ON THEM.

I tried to close out the accounts and was told I have to get a tax waiver and I'm not sure how to go about this. They sent me a booklet of forms but Do I have the power to do this? does my cousin have to do this? and I'm not sure what to do to get my money back. My aunt used the interest on the accounts to pay for medications and general purposes because she was not receiving much in the way of social security.

I have paid for the cemetery, funeral home and Canadian drug, the amount in OUR names is approx> 510,000 dollars. I have a notarized lending agreement dated 2008 for the money to be paid upon her death to me.

How do I get my money back?


Asked on 10/14/16, 8:51 am

1 Answer from Attorneys

Walter LeVine Walter D. LeVine, Esq.

New Jersey has an unusual death tax scheme, and it will involve your cousin to obtain the waiver. In brief, the requirement is due to the relationship between you and your aunt. It depends on how much of what you will be receiving is actually a loan repayment, and the balance, if any, will be considered an inheritance. The inheritance portion (possibly represented by the trust account) will be subject to the NJ Inheritance Tax which can be quite a high due to your relationship. The loan repayment should not be subject to the tax. Plus, the accounts with both names raise a question. Is any part of the accounts your money, or was it all your aunt's? A possible presumption is that 1/2 of each account is your funds (not death taxable) but it can be also argued all of the funds were your aunt's money and you were named on the account merely as an accommodation so you could pay bills. I suggest you retain an attorney to assist you and your cousin in this situation, as you have an exposure of tens of thousands of dollars in death taxes. Legitimate expenses like the funeral and cemetery are deductions on the inheritance tax return and can be reimbursed to you free of tax.

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Answered on 10/14/16, 9:38 am


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