Don't die In New Jersey as a green card holder !
#1
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Joined: Nov 2003
Posts: 12
Don't die In New Jersey as a green card holder !
I post this as an awful warning. We have lived in NJ for 18 years as green card holders, we should have got citizenship but have always intended to move back to UK . Our dear friends also from the UK have been here 25 years also on Green Cards . Our friend suddenly died mid 50s and a little piece of NJ TAX law came into play .If you die in the great state of New Jersey as a resident Alien you are liable to death duties.His poor wife had to pay over $60,000 in death taxes. If she had lived 5 miles away over the Delaware river in Pennsylvania she would not have had to pay this. The solution is to become a citizen or per her accountant they could have set up a trust fund of some sort to off set this, but of course none of us new this tax existed and NJ is not the only state that has it. So just a heads up .
#2
Re: Don't die In New Jersey as a green card holder !
I post this as an awful warning. We have lived in NJ for 18 years as green card holders, we should have got citizenship but have always intended to move back to UK . Our dear friends also from the UK have been here 25 years also on Green Cards . Our friend suddenly died mid 50s and a little piece of NJ TAX law came into play .If you die in the great state of New Jersey as a resident Alien you are liable to death duties.His poor wife had to pay over $60,000 in death taxes. If she had lived 5 miles away over the Delaware river in Pennsylvania she would not have had to pay this. The solution is to become a citizen or per her accountant they could have set up a trust fund of some sort to off set this, but of course none of us new this tax existed and NJ is not the only state that has it. So just a heads up .
#3
Re: Don't die In New Jersey as a green card holder !
New Jersey estate tax applies to everyone, alien or otherwise: New Jersey EstateTax | Nolo.com
Are you saying that the marital exemption doesn't apply because she's an LPR? That sounds unconstitutional to me. Equal protection of the law under the 14th Amendment. Use of a trust shouldn't be necessary for transfers to a spouse.
Are you saying that the marital exemption doesn't apply because she's an LPR? That sounds unconstitutional to me. Equal protection of the law under the 14th Amendment. Use of a trust shouldn't be necessary for transfers to a spouse.
#4
Re: Don't die In New Jersey as a green card holder !
New Jersey estate tax applies to everyone, alien or otherwise: New Jersey EstateTax | Nolo.com
Are you saying that the marital exemption doesn't apply because she's an LPR? That sounds unconstitutional to me. Equal protection of the law under the 14th Amendment. Use of a trust shouldn't be necessary for transfers to a spouse.
Are you saying that the marital exemption doesn't apply because she's an LPR? That sounds unconstitutional to me. Equal protection of the law under the 14th Amendment. Use of a trust shouldn't be necessary for transfers to a spouse.
#5
Account Closed
Joined: Jan 2006
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Re: Don't die In New Jersey as a green card holder !
So I guess it's best to enjoy your money while alive and die poor so the tax man can't have any.
#7
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Joined: Jan 2006
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Re: Don't die In New Jersey as a green card holder !
Yes that to.
I don't see a point to amassing wealth and assets and then just die with it all and of no use to you, may as well use it to the max advantage while alive so you can enjoy it.
Suppose if you have kids its different, when we die, unless a kid appears, anything we have will end up to whoever happens to get stuff when people die and have no family to take it.
I don't see a point to amassing wealth and assets and then just die with it all and of no use to you, may as well use it to the max advantage while alive so you can enjoy it.
Suppose if you have kids its different, when we die, unless a kid appears, anything we have will end up to whoever happens to get stuff when people die and have no family to take it.
#9
Re: Don't die In New Jersey as a green card holder !
First hit I got in Google.
So if I was said person, I'd go to court, it's worth it for $60,000. Pretty straightforward case really, although NJ courts are also known for their wackiness. But you could go to federal court and apply for summary judgement.
#10
Re: Don't die In New Jersey as a green card holder !
Well it's just another example of why you should apply for US citizenship. I'm sure this law is unconstitutional but it would have saved a lot of hassle of going to court.
My personal view is if you live country X you should always become a citizen of country X if it is possible. Even if you live in the Schengen Area, because I'm sure there's a lot of people living in Switzerland who didn't think Switzerland would vote to leave it.
My personal view is if you live country X you should always become a citizen of country X if it is possible. Even if you live in the Schengen Area, because I'm sure there's a lot of people living in Switzerland who didn't think Switzerland would vote to leave it.
#11
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Joined: Aug 2013
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Posts: 2,134
Re: Don't die In New Jersey as a green card holder !
Well it's just another example of why you should apply for US citizenship. I'm sure this law is unconstitutional but it would have saved a lot of hassle of going to court.
My personal view is if you live country X you should always become a citizen of country X if it is possible. Even if you live in the Schengen Area, because I'm sure there's a lot of people living in Switzerland who didn't think Switzerland would vote to leave it.
My personal view is if you live country X you should always become a citizen of country X if it is possible. Even if you live in the Schengen Area, because I'm sure there's a lot of people living in Switzerland who didn't think Switzerland would vote to leave it.
#12
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Joined: May 2010
Location: San Diego, California
Posts: 9,662
Re: Don't die In New Jersey as a green card holder !
This law is nothing new and certainly does not apply just to New Jersey.
I have pointed this out several times to people who are thinking of whether to take out naturalisation and or/when they are intending to do wills/estates.
If neither of the couple is a US citizen then Uncle Sam wants his death duties at the time of one of them dying, so that the other does not leave the country taking their assets with them.
No transfer of assets - with no taxes - to the remaining spouse for them.
I have pointed this out several times to people who are thinking of whether to take out naturalisation and or/when they are intending to do wills/estates.
If neither of the couple is a US citizen then Uncle Sam wants his death duties at the time of one of them dying, so that the other does not leave the country taking their assets with them.
No transfer of assets - with no taxes - to the remaining spouse for them.
#13
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Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,546
Re: Don't die In New Jersey as a green card holder !
Don't most married couples hold the largest part of their assets jointly, such as a house and bank accounts? And what about a brokerage account (for instance) that is classified as "transfer on death", that is, doesn't have to go through probate. Or your 403b account, where your spouse is your beneficiary.
Would those types of assets be exempt from the NJ inheritance tax? (Just curious, I'm a citizen and live in New York!)
Would those types of assets be exempt from the NJ inheritance tax? (Just curious, I'm a citizen and live in New York!)
#14
Re: Don't die In New Jersey as a green card holder !
Are there any lists of States / laws that don't play nicely with LPRs?
#15
Re: Don't die In New Jersey as a green card holder !
Don't most married couples hold the largest part of their assets jointly, such as a house and bank accounts? And what about a brokerage account (for instance) that is classified as "transfer on death", that is, doesn't have to go through probate. Or your 403b account, where your spouse is your beneficiary.
Would those types of assets be exempt from the NJ inheritance tax? (Just curious, I'm a citizen and live in New York!)
Would those types of assets be exempt from the NJ inheritance tax? (Just curious, I'm a citizen and live in New York!)