|Posted:||March 17, 2015 09:11 AM|
|From:||Senator Patrick J. Stefano|
|To:||All Senate members|
|Subject:||Inheritance Tax Elimination for Children Age of 21 and Under|
|In the near future, I plan to introduce legislation that will add a section to the current inheritance tax law by eliminating the inheritance tax rate for transfers of property to or for the use of a child aged 21 years or younger from a natural parent, adoptive parent or step-parent.
Currently, the inheritance tax law provides an inheritance tax rate of 0% on property transferred from a child aged 21 or younger to a natural parent, adoptive parent or step-parent. However, when property is transferred from the parent to the minor child, it is currently subject to an inheritance tax rate of 4.5%.
My legislation will ensure that minor children who inherit property when a natural, adoptive or step-parent passes away will not be subject to the inheritance tax. There have been cases in Somerset County where a minor child has had to pay inheritance tax on property that was jointly owned, such as a joint savings account, when the parent passed away. Changing the tax rate to 0% would eliminate the child from being subject to such a tax.
I ask you to please join me in co-sponsoring this important piece of legislation. If you have any questions regarding this information, please contact Mark Fetzko (firstname.lastname@example.org) or Ben Wren (email@example.com) of my office.
Introduced as SB734