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In New Jersey, the handling of a deceased resident's non-real estate assets such as bank accounts, stocks, brokerage accounts, and investment bonds requires careful consideration, especially when it comes to the legal documentation used. The Form L-8, officially titled "Affidavit for Non-Real Estate Investments: Resident Decedents," stands out as a crucial document in this process, providing a streamlined method for the release of these assets. This form is applicable exclusively to assets located within New Jersey and does not cover real estate investments, for which Form L-9 is used instead. The key individuals eligible to complete this form include the executor, administrator of the estate, the surviving Class A joint tenant, which often refers to a spouse or civil union partner, or a Class A Payable On Death (POD) beneficiary. It's imperative to note that Form L-8 delineates specific types of beneficiaries eligible to receive assets, primarily focusing on Class A beneficiaries, which encompass a spouse, civil union partner, domestic partner from specific dates, children (including those legally adopted), and parents/grandparents, thereby excluding a wider array of relationships. Additionally, the form demands clarity regarding how the assets are to pass on to the beneficiary, with detailed sections addressing the presence of trusts or disclaimers, requirements concerning estate taxes, and a complete listing of the properties for which release is sought. Moreover, a notarized signature from the executor, administrator, or beneficiary is mandatory to validate the affidavit. The form’s rigorous specificity and the exclusion of certain relationships from its use underscore New Jersey’s intricate laws governing the distribution of a decedent's assets, highlighting the importance of this affidavit in navigating the legal process smoothly and efficiently.

Sample - Nj L 8 Form

Form L-8 – Affidavit for Non-Real Estate Investments: Resident Decedents

Use this form for release of:

New Jersey bank accounts;

Stock in New Jersey corporations;

Brokerage accounts; and

New Jersey investment bonds.

This form cannot be used for real estate.

For real estate investments, use Form L-9.

This form can be completed by:

The executor;

Administrator;

The surviving Class A joint tenant (often a spouse or civil union partner); or

Class A Payable On Death (POD) beneficiary of the assets for which release is sought.

PART I – ELIGIBLE BENEFICIARIES: Check the box or boxes corresponding to the type of beneficiary who is receiving the assets that will be listed in Part V. If at least one of the boxes does not apply, the L-8 cannot be used to release these assets. Qualified civil union partners and domestic partners must provide a legal certificate to

document their status.

The following are considered Class A beneficiaries:

Surviving spouse;

Surviving civil union partner when a decedent’s death is on or after February

,

;

Surviving domestic partner when a decedent’s death is on or after July ,

4;

 

Child, stepchild, legally adopted child, or issue of any child or legally adopted child (includes a grandchild and a great grandchild but not a step-grandchild or a step great-grandchild);

Parent and /or grandparent.

Note: You cannot use this form to release any asset passing to a beneficiary other than the Class A beneficiaries specifically listed in Part I.

For example, the following people cannot use this form (and must file a return to receive waivers):

Sisters and brothers of the decedent;

Sons-in-law or daughters-in-law of the decedent;

Nieces and nephews, aunts and uncles;

Ex-spouses;

Mutually acknowledged children;

Step-grandchildren and charities.

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PART II – SUCCESSION: Check the box that shows how the assets pass to the beneficiary.

Check Box a if the assets on the form pass directly to the beneficiary by operation of law. This means they were jointly held, POD, or Transfer on Death (TOD). (A copy of the will is not needed);

Check Box b if the will states that these specific assets reported on the L-8 form pass to a particular named beneficiary. (Attach a copy of the will);

Check Box c if there was no will (intestate) and all the beneficiaries in the entire estate are Class A beneficiaries as listed in Part I; or

Check Box c if there was a will (testate), but there were no specific bequests and all the beneficiaries in the entire estate are one of the Class A beneficiaries listed in Part I (attach a copy of the will).

Note: If at least one of the boxes does not apply, the L-8 cannot be used to release these assets.

PART III – TRUSTS/DISCLAIMERS: If any of the assets you wish to release pass into or through a trust, where the

trust decides how the assets are distributed, you cannot use the L-8. Trusts can be set up by decedents either in their will, or separately from the will. For the purposes of the L- , it is not generally considered a trust when there is a bequest in the will to a minor who is a Class A to be held in trust until he/she reaches a specific age. In all other

cases, a full return must be filed with the Inheritance Tax Branch, even if the assets all appear to be passing to Class A beneficiaries.

NOTE: Assets that are owned by or in the name of a trust do not require a waiver or L-8, but must still be reported on any return filed.

PART IV – ESTATE TAX: This section determines whether the estate may be required to pay New Jersey Estate Tax. You must be able to answer YES to either a , b , or c) to qualify to use this form. If the decedent died on or after

January 1, 2017, but before January 1, 2018, his/her entire taxable estate must be under $2 million. If the date of death was before January 1, 2017, the entire taxable estate must be under $675,000. Even if you qualify to use this form, a return is still required if the gross estate is over $675,000. If the decedent died on or after January 1, 2018, then there is no Estate Tax.

PART V – PROPERTY: List all the assets in this institution for which you are requesting a release. If this is a bank, list each account in this bank separately. Follow the column headings for each asset. Under How held/Registered, you may enter NOD Name of Decedent if the account was in the name of the decedent alone. If it was Paid on Death POD to a person, enter POD to and the person or persons’ names (e.g., POD Jane Doe and John Doe). If it was jointly held, enter NOD and/or the beneficiary’s name.

PART VI – BENEFICIARIES: List the name of each beneficiary and his/her relationship to the decedent. The relationship must be one of the Class A beneficiaries listed in Part I of the L-8.

NOTE: Executor, Estate, and

Beneficiary are not correct relations to the decedent in this column. You must use

terms such as Child, Spouse,

or Grandchild.

SIGNATURE: This form is an affidavit and must be signed by the executor, administrator, or beneficiary, and the signature must be notarized.

PART VII – RELEASING INSTITUTION: A representative of the institution releasing the funds must verify that all questions have been answered and that the beneficiaries reported are allowed per Part I, before signing the form and releasing any assets. If you have any question as to whether you are permitted to release assets, please call the Inheritance Tax general information number at (609) 292-5033 and ask to speak to an Information Section representative.

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Form L-8

Take or send the completed form directly to the bank or other financial institution holding the funds.

Do not mail this form to the Division of Taxation. You will not receive a waiver.

Decedent’s Name ________________________________________________________ Decedent’s SSN: _____________________________________________________

(Last)

(First)

(Middle)

Date of Death (mm/dd/yy)

/

/

County of Residence ____________________________Testate (Will)

You must answer the following questions:

I.ELIGIBLE BENEFICIARIES: Who is receiving the assets listed on the reverse side? Check all that apply:

Intestate (No Will)

a.

Surviving spouse;

b.

Surviving civil union partner when a decedent’s death is on or after February , 2007;

c.

Surviving domestic partner when a decedent’s death is on or after July , 2004;

d.Child, stepchild, legally adopted child, or issue of any child or legally adopted child (includes a grandchild and a great grandchild but not a step-grandchild or a step great-grandchild);

e. Parent and /or grandparent.

Were you able to check at least one of the boxes above?

 

Yes

 

No If No, this form may not be used and an Inheritance Tax return must be filed. If Yes, continue to Part II.

II.SUCCESSION: How were the assets received? Check any that apply:

a. The beneficiary succeeded to the assets by survivorship or contract; or

b.The property was specifically devised to the beneficiary; or

c.The property was not specifically devised, but all beneficiaries under the decedent’s will or intestate heirs-at-law are Class A as described in a. through e. in Part I above.

Were you able to check at least one of the boxes above?

 

Yes

 

No If No, this form may not be used.

NOTE: If there are any assets passing to any beneficiary other than a member of the groups listed above, a complete Transfer Inheritance Tax Return must be filed in the normal manner. It must list all assets in the estate, including any which were acquired by means of this form.

III.TRUSTS/DISCLAIMERS: Do any portion of the assets listed on the reverse side pass into a trust or pass to the beneficiary as a result of a disclaimer?

Yes

 

No If Yes, this form may not be used.

IV. ESTATE TAX:

a.Was the decedent’s date of death on or after January 1, 2018; or

b.Was the decedent’s date of death on or after January 1, 2017, but before January 1, 2018, and his/her taxable estate less than $2 million as determined pursuant to Section 2051 of the Internal Revenue Code (I.R.C. § 2051)*; or

c.Was the decedent’s date of death before January 1, 2017, and is his/her taxable estate plus adjusted taxable gifts $675,000 or less as determined pursuant to the provisions of the Internal Revenue Code in effect on

December 31, 2001, (Line 3 plus Line 4 on 2001 Federal Estate Tax Form 706)?

 

 

 

 

Check Yes or No based on whether a, b, or c applies.

 

 

 

Yes

 

No If No, this form may not be used.

 

 

 

 

 

*While this form may be used if the decedent died on or after January 1, 2017 but before January ,

if the decedent’s

taxable estate is under $2 million pursuant to Section 2051 of the Internal Revenue Code, a return must still be filed if the gross estate is over $2 million.

To Be Valid, This Form Must Be Fully Completed On Both Sides

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Street Address
______________________________________________________________
Deponent’s Social Security or Federal Identification Number
Deponent: Executor / Administrator / Joint Tenant / Heir-at-Law
___________________________________________________being duly sworn, deposes and says that the foregoing statements are
true to the best of his/her information or belief. Subscribed and sworn before me this_________
day of _______________, ________.
If the decedent died with a will, and the assets listed above pass to the beneficiaries through the will, a complete copy of the last will and testament, codicils, and separate writings must be submitted with this form.
I hereby request the release of the property listed in Part V above. I certify that the beneficiaries of said property are listed in Part VI above and that this form is completed in accordance with its filing requirements.
State of New Jersey County of___________________________________ss.
Notary Public
VI. BENEFICIARIES OF PROPERTIES LISTED IN V. ABOVE: Name(s) of Beneficiary
BANK ACCOUNTS/BROKERAGE ACCOUNTS: Must list the full balance as of the date of death.
STOCK: List the name of the company and number of shares held under Description of Asset.
BONDS: Include the name of the issuer, face value under Description of Asset.
Signature: _____
V. PROPERTY (Bank accounts, Brokerage accounts, Stock, Investment Bonds): A separate affidavit is required for each institution releasing assets.

Description of Asset

How held/Registered

Date of Death Value*

(Checking, Savings, CD, IRA, # of Shares, etc.)

(Joint, POD, TOD, Individual, etc.)

(Full Value)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Relation to Decedent (Must be checked in Part I)

Town/CityState Zip

This Form Must Be Signed by the Releasing Institution Before Mailing to the Division of Taxation

VII. To Be Completed by Releasing Institution

A bank, trust company, association, other depository, transfer agent, or organization may release the assets herein set forth only if the first, second, and fourth boxes (Parts I, II and IV) on the front of this form are checked YES, the third box (Part III) is checked NO and Part VI includes only those relationships permitted in Part I, items 1 through 5. Also, if the decedent died testate and the assets do not pass by contract or survivorship, a complete copy of the will, separate writing, and all codicils must be attached.

The original of this affidavit must be filed by the releasing institution within five business days of execution with the Division of Taxation, Transfer Inheritance and Estate Tax Branch, 50 Barrack Street, PO Box 249, Trenton, NJ 08695-0249. The affiant (person who made affidavit) should be given a copy.

Name of Institution Accepting AffidavitAddress

By__________________________________________________________________________________________________________________________________________________

Name

Phone Number

 

Riders May be Attached – This Form May Be Reproduced

 

To Be Valid, This Form Must Be Fully Completed on Both Sides

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Document Specifications

Fact Name Description
Purpose of Form L-8 Used for the release of New Jersey bank accounts, stock in New Jersey corporations, brokerage accounts, and New Jersey investment bonds for resident decedents.
Exclusions Cannot be used for the release of real estate investments. Form L-9 is required for those assets.
Eligible Individuals to Complete Form Can be completed by the executor, administrator, surviving Class A joint tenant, or Class A Payable On Death (POD) beneficiary.
Class A Beneficiaries Includes surviving spouse, civil union partner, domestic partner, child (and their descendants but not step-children), and parents/grandparents.
Ineligible Beneficiaries Cannot be used to release assets to siblings, in-laws, nieces and nephews, ex-spouses, step-grandchildren, mutually acknowledged children, and charities.
Succession Types Assets can pass directly by operation of law, as named in a will, or under intestate succession if all are Class A beneficiaries.
Trusts and Disclaimers Form L-8 cannot be used if assets pass into or through a trust, or are transferred due to a disclaimer.
Estate Tax Criteria For deaths after January 1, 2018, there is no estate tax. For deaths between January 1, 2017, and December 31, 2017, the estate must be under $2 million.
Releasing Institution Funds can only be released if certain conditions on the form are met, including that all beneficiaries are Class A as specified.

Detailed Steps for Using Nj L 8

Filling out the NJ L-8 form is an important step in managing the assets of a New Jersey resident who has passed away, especially when it comes to non-real estate investments such as bank accounts, stocks, brokerage accounts, and investment bonds. This document facilitates the release of these assets to the rightful beneficiaries without the need for a waiver from the Division of Taxation. To ensure accuracy and compliance, it's crucial to follow each step carefully and provide all the necessary documentation.

  1. Identify Eligible Beneficiaries: Begin by checking all boxes in Part I that apply to the recipient of the assets. This section helps to ascertain that the assets will be released to Class A beneficiaries only. If you cannot check at least one box, the NJ L-8 form cannot be used for the release.
  2. Detail the Succession Method: In Part II, indicate how the assets are being passed on to the beneficiary by checking the appropriate box. Attach a copy of the will if the assets are being passed as specified bequests or if the estate is being distributed according to the will, even without specific bequests to Class A beneficiaries.
  3. Address Trusts/Disclaimers: If the assets pass through a trust or are subject to a disclaimer, answer "Yes" in Part III, noting that this will preclude the use of the NJ L-8 form.
  4. Determine Estate Tax Applicability: In Part IV, ascertain whether the estate is subject to New Jersey Estate Tax by answering the questions about the date of death and the size of the estate. This section helps determine if the simplified process of the L-8 form is permissible.
  5. List the Assets: In Part V, provide detail for each asset for which release is being requested, including the type of asset, how it was held, its value at the date of death, and the relationship of the beneficiary to the decedent as defined in Part I.
  6. Identify the Beneficiaries: Part VI requires the names of each beneficiary and their relationship to the decedent. Ensure these align with the Class A beneficiary criteria specified in Part I.
  7. Executor/Administrator/Joint Tenant or Beneficiary Signature: The form must be signed by the person responsible for submitting it, affirming the accuracy and truthfulness of the information provided. This signature must be notarized.
  8. Releasing Institution Verification: A representative from the institution holding the assets must complete Part VII, verifying compliance with the NJ L-8 criteria before releasing any assets.

Once the form is fully completed and signed, it should be taken or sent to the financial institution holding the accounts or securities. Remember, this form is not submitted to the Division of Taxation but to the relevant institution managing the assets. Accuracy in completing this form is crucial to ensure a smooth process in releasing the decedent's assets to the rightful beneficiaries.

Learn More on Nj L 8

NJ L-8 Form FAQ

What is the NJ L-8 Form used for?

The NJ L-8 Form, titled "Affidavit for Non-Real Estate Investments: Resident Decedents," is designed for the release of specific assets held in New Jersey for individuals who have passed away. These assets include New Jersey bank accounts, stocks in New Jersey corporations, brokerage accounts, and New Jersey investment bonds. It’s important to note that this form is not applicable for the release of real estate assets, for which the Form L-9 is used instead.

Who can complete the NJ L-8 Form?

The following parties are eligible to complete the NJ L-8 Form:

  • The executor of the estate;
  • The administrator;
  • The surviving Class A joint tenant, which often refers to a spouse or civil union partner;
  • Class A Payable On Death (POD) beneficiary of the assets.

What are Class A beneficiaries?

Class A beneficiaries are those who have a specific relation to the decedent, as defined by the state of New Jersey. These include:

  1. A surviving spouse;
  2. A surviving civil union partner, for deaths occurring on or after February 19, 2007;
  3. A surviving domestic partner, for deaths occurring on or after July 10, 2004;
  4. Children, stepchildren, legally adopted children, or their descendants (grandchildren or great-grandchildren, but not step-grandchildren or step-great-grandchildren);
  5. Parents and/or grandparents.
This classification is necessary for the form's eligibility criteria.

What documentation is needed with the NJ L-8 Form?

The documents required to accompany the NJ L-8 Form depend on the succession nature of the assets:

  • If the assets pass directly to the beneficiary by operation of law (jointly held, POD, or Transfer on Death (TOD)), no copy of the will is needed.
  • If the will states that these specific assets reported on the L-8 form pass to a named beneficiary, a copy of the will must be attached.
Additionally, for assets not specifically bequeathed but passing to Class A beneficiaries under a will or intestate, a copy of the will is also required.

Can the NJ L-8 Form be used if assets are passing through a trust?

No, the NJ L-8 Form cannot be used if any of the assets listed are meant to pass into or through a trust where the trust decides how the assets are distributed. Trusts set up either in the decedent's will or separately must follow a different procedure, and a full return must be filed with the Inheritance Tax Branch. However, exceptions exist if the bequest to a minor classified as Class A is to be held in trust until reaching a specific age.

What if the estate exceeds certain valuation thresholds?

The eligibility to use the NJ L-8 Form partly depends on the valuation of the estate in relation to the New Jersey Estate Tax regulations, which are:

  • If the decedent died on or after January 1, 2017, but before January 1, 2018, the entire taxable estate must be under $2 million.
  • For deaths before January 1, 2017, the taxable estate must be under $675,000.
  • If the decedent died on or after January 1, 2018, there is no Estate Tax, simplifying the use of this form.
It's important to note that even if eligible for using this form, estates over these thresholds may still require filing a return.

Common mistakes

  1. Not checking all relevant boxes for eligible beneficiaries in Part I leads to the mistaken belief that one can still proceed even if disallowed beneficiaries are involved. Keep in mind, the form is exclusively for Class A beneficiaries, including the surviving spouse or civil union partner, child, stepchild, or parent.

  2. Incorrectly determining how assets are received in Part II by not carefully reading the definitions for each box. It's essential to understand whether assets pass directly, through a will, or in the absence of a will.

  3. Failing to attach a copy of the will when required in Parts II and VII. When specific assets pass to a beneficiary as per the decedent's will, attaching a full copy of the will is a necessary step that's often overlooked.

  4. Attempting to use the form when trusts or disclaimers are involved, as mentioned in Part III. The form is invalid if assets pass into or through a trust, or are transferred as a result of a disclaimer.

  5. Misunderstanding the estate tax qualifications in Part IV. This section needs a clear distinction to be made based on the decedent's date of death and the taxable estate's value.

  6. Listing assets inaccurately in Part V. It's important to detail each asset correctly under the appropriate headings, including the full balance as of the date of death, and to denote how the asset was held.

  7. Incorrectly specifying relationships to the decedent in Part VI. All mentioned beneficiaries must have a Class A relationship to the decedent, such as child, spouse, or grandchild.

  8. Omitting the signing by a notary. Since the form is an affidavit, the executor, administrator, or beneficiary's signature must be notarized to be valid, which people sometimes forget.

  9. Forgetting to ensure the releasing institution's verification in Part VII. The representative of the entity releasing the funds must confirm the compliance of the form with the eligibility criteria before signing off.

  10. Not contacting the Inheritance Tax General Information number for clarity about the form's requirements when unsure. Help is available to avoid errors, but people often proceed without seeking this support.

Remember, accuracy and attention to detail are key when filling out the Form L-8 to ensure the smooth processing of the non-real estate investments of a resident decedent.

Documents used along the form

When managing the affairs of someone who has passed away, especially in New Jersey, the Form L-8 is crucial for accessing non-real estate investments. However, this form is just one of many documents that might be needed to settle an estate fully and ensure that assets are distributed correctly and legally. Handling these matters with sensitivity and care is vital to supporting families during challenging times.

  • Form L-9: Used specifically for real estate investments within New Jersey, allowing for the release of these types of assets to the rightful inheritors.
  • Form IT-R: Required for filing Inheritance Tax returns, this form is necessary when the estate transfers assets to beneficiaries not classified as Class A, such as friends or charities.
  • Certificate of Release of New Jersey Estate Tax Lien: This document is crucial when the estate includes real property in New Jersey and confirms estate taxes have been cleared, allowing for property transfer.
  • Copy of the Death Certificate: Essential for nearly all post-death transactions, it officially confirms the death of the decedent.
  • Form L-4: Necessary for bank accounts not covered under the L-8 form, typically used when the decedent had significant funds in a New Jersey bank.
  • Last Will and Testament: Includes specific bequests and distributions as directed by the decedent, essential for assets not jointly held, POD, or TOD.
  • Trust Documents: If assets are in a trust, these documents dictate the distribution, separate from the will.
  • Federal and State Tax Returns: May be required to assess any outstanding tax obligations of the estate.
  • Affidavit of Domicile: Confirms the decedent's primary place of residence at the time of death, crucial for determining tax liabilities.

Each document plays a specific role in the comprehensive process of estate settlement. Form L-8 facilitates access to non-real estate investments for the decedent's beneficiaries. In contrast, other forms and documents ensure the lawful and intended distribution of all assets. The process, although complex, underscores the importance of meticulous preparation and compassion in managing the affairs of those who have passed, ensuring their wishes are honored and their loved ones are taken care of.

Similar forms

The Form L-8, used in New Jersey for the release of certain non-real estate investments of a deceased resident, shares similarities with a range of other documents that facilitate the transfer or release of assets post-death. Each of these documents plays a crucial role in the administration of an estate, serving specific purposes while navigating the legal and financial complexities that follow a person’s passing.

One similar document is the Federal Transfer Certificate (IRS Form 5173), required for the transfer of U.S.-situs assets to foreign heirs or beneficiaries. Like Form L-8, it certifies that the estate has met its tax obligations, allowing financial institutions to release the deceased’s assets. Although the Federal Transfer Certificate deals with federal tax implications and international heirs, both forms ensure financial entities that the necessary tax considerations have been addressed before the distribution of assets.

Form L-9, also specific to New Jersey, is for real estate investments of a deceased resident. While Form L-8 cannot be used for real estate, Form L-9 steps in to fill this gap, making these forms complementary in administering a decedent's estate. Both forms simplify the process for the executor or administrator, allowing them to release assets without filing a complete inheritance tax return under certain conditions.

The Small Estate Affidavit is another document with parallels to Form L-8, employed across various jurisdictions to facilitate the transfer of a deceased person's property to beneficiaries without a full probate process. Similar to Form L-8's requirement for Class A beneficiaries, Small Estate Affidavits often have limits on the value of the estate and are used to expedite the legal process involved in asset distribution.

The Transfer on Death (TOD) registration form allows for the direct transfer of assets, such as brokerage accounts and securities, to beneficiaries upon the account holder’s death, bypassing probate. Like Form L-8, TOD registrations offer a straightforward means of transferring specific assets. However, while Form L-8 deals with assets of a deceased individual, TOD agreements are prepared in advance of death.

The Payable on Death (POD) account form is another pre-emptive document like the TOD registration. It designates beneficiaries for bank and financial accounts, ensuring assets are transferred directly upon death. Both the POD form and Form L-8 serve to bypass the probate process for certain assets, although Form L-8 is utilized posthumously and is specific to New Jersey decedents.

Another comparable form is the Affidavit for Collection of Personal Property, used in many states under the Uniform Probate Code for small estates. This affidavit allows for the collection of personal property by the successors without a formal probate. Both this affidavit and Form L-8 simplify the legal processes involved in asset distribution, yet they cater to different aspects of an estate.

Lastly, the Joint Tenancy with Right of Survivorship (JTWROS) agreement, while not a post-death form, establishes a method for co-owned property to pass seamlessly to the surviving owner(s) upon the death of one owner. Its intent mirrors that of Form L-8’s provisions for direct asset transfers, albeit for ongoing ownership rather than estate settlement.

In conclusion, while each of these documents serves its specific purpose within the realm of estate planning and administration, they all share the common goal of facilitating the transfer of assets upon death. Form L-8 acts within this continuum, offering a streamlined approach for non-real estate investments in New Jersey, indicative of the broader legal mechanisms designed to aid in the efficient resolution of a decedent's affairs.

Dos and Don'ts

When you're completing the NJ L-8 Form, an Affidavit for Non-Real Estate Investments for resident decedents, it's crucial to do it correctly. This form is vital for releasing New Jersey bank accounts, stocks in New Jersey corporations, brokerage accounts, and New Jersey investment bonds held by a decedent. Here are some dos and don'ts to guide you through the process:

  • Do ensure you are eligible to complete the form. This means you must be an executor, administrator, surviving Class A joint tenant, or a Class A Payable On Death (POD) beneficiary.
  • Do accurately check the box or boxes in Part I that describe your relationship to the decedent and your eligibility as a beneficiary.
  • Do attach a legal certificate for qualified civil union partners and domestic partners to document their status, if applicable.
  • Do carefully list all the assets for which you are requesting a release in the appropriate section, following the guidelines for each type of asset.
  • Do ensure that all information provided is accurate and complete, including the decedent’s name, Social Security Number, and date of death, as well as your relationship to the decedent.
  • Do not attempt to use this form to release assets if they pass into or through a trust, as stated in Part III. This form is not applicable in those scenarios.
  • Do not use this form for real estate investments. For those, you will need to use Form L-9 instead.
  • Do not leave any mandatory fields incomplete. This includes failing to attach a copy of the will if assets pass to a beneficiary as specified in the will (Part II, Box b).
  • Do not forget to have the form signed and notarized, as it is an affidavit. The signature section cannot be overlooked.
  • Do not send this form to the Division of Taxation. Instead, take or send the completed form directly to the bank or other financial institution holding the decedent’s assets.

Following these dos and don'ts will help ensure that the NJ L-8 Form is filled out correctly and that the process of releasing the decedent's non-real estate investments goes smoothly.

Misconceptions

When navigating the complexities of the New Jersey L-8 Form, an Affidavit for Non-Real Estate Investments, there are several misunderstandings that can lead to confusion. Clearing up these misconceptions ensures that the process is handled accurately and efficiently.

  • Only for real estate: Despite what some may think, the L-8 Form is not used for real estate transactions. It's specifically designed for the release of non-real estate investments, like New Jersey bank accounts, stocks, brokerage accounts, and investment bonds.
  • Any beneficiary can use it: The form is not a one-size-fits-all solution. Only Class A beneficiaries, such as a surviving spouse, children, or parents, are eligible to use it. This means assets cannot be released to siblings, nieces, nephews, or other relatives using this form.
  • Automatic waiver receipt: Completing the L-8 Form does not automatically grant a waiver. It's a tool for releasing specific assets to the rightful beneficiaries without needing a waiver from the Division of Taxation.
  • Executor or administrator exclusive: While commonly believed that only executors or administrators can complete the form, in reality, surviving Class A joint tenants and Class A Payable On Death (POD) beneficiaries are also permitted to do so.
  • Required for trusts: Trusts generally require a different handling. If assets are passing via a trust, the L-8 Form is typically not the right document to use, except in specific circumstances involving minors who are Class A beneficiaries.
  • One form per asset: There's a misconception that you need multiple forms for each asset. In fact, multiple assets held in the same institution can be listed on a single form, as long as all other requirements are met.
  • Estate size irrelevant: Some believe the size of the estate impacts the L-8 Form's applicability. However, its use is primarily determined by the beneficiary class and the way the assets are registered, not the estate's total value.
  • Can bypass estate tax: Filling out this form doesn't exempt an estate from New Jersey Estate Tax obligations. The need to pay estate tax is determined separately from the process of releasing assets with the L-8 Form.
  • Legal certification not needed for class A beneficiaries: Contrary to this belief, qualified civil union partners and domestic partners must provide legal documentation verifying their status to use the L-8 Form effectively.
  • Submission to Division of Taxation: Finally, there is a misconception that this form should be sent directly to the Division of Taxation. Instead, it should be presented to the bank or financial institution holding the assets. The releasing institution handles any necessary communications with the Division of Taxation.

Understanding these points ensures smoother transactions and helps avoid unnecessary complications or delays in the asset release process. The L-8 Form is a valuable document for eligible beneficiaries, but it must be used correctly to be effective.

Key takeaways

The NJ L-8 form is designed for the release of specific non-real estate investments for resident decedents, including New Jersey bank accounts, stocks in New Jersey corporations, brokerage accounts, and New Jersey investment bonds, but explicitly excludes real estate assets.

Eligible individuals to complete the form encompass the executor or administrator of the estate, the surviving Class A joint tenant, which includes a spouse or civil union partner, or a Class A payable-on-death (POD) beneficiary of the assets.

Class A beneficiaries are limited to surviving spouses, civil union partners, domestic partners (under specific conditions), children (including legally adopted children, stepchildren, grandchildren, and great-grandchildren but excluding step-grandchildren and step great-grandchildren), and parents/grandparents. If assets are passing to any individuals outside this group, the form L-8 cannot be utilized, and a different process must be followed.

The form requires clarity on how the assets are succeeding to the beneficiary, including by law (through joint ownership, POD, or TOD arrangements), specified in the decedent's will, or by default under intestate succession laws, provided all involved are Class A beneficiaries.

It's essential to be aware that assets passing into or through a trust, or due to a beneficiary's disclaimer, generally do not qualify for the release using this form. Exceptions exist but are limited and specific.

For estates of decedents who passed on or after January 1, 2018, New Jersey Estate Tax does not apply. However, different thresholds for estate tax apply for deaths occurring before this date, affecting the applicability of the NJ L-8 form.

Completion of Part V, listing the property and assets for which a release is requested, requires detailed information on each asset, including the manner it was held or registered (Joint, POD, TOD, Individual) and its value at the date of death.

This form acts as an affidavit and must be signed by the executor, administrator, or beneficiary, with a requirement for the signature to be notarized. Ultimately, the completed form should be directed to the financial institution holding the assets, not mailed to the Division of Taxation, as this form does not result in a waiver.

Upon completion, the releasing institution has the task of ensuring compliance with specific eligibility and relationship requirements detailed on the form before proceeding with the release of assets. A copy of the affidavit should be kept by the person filing it, with the original sent to the Division of Taxation, Transfer Inheritance, and Estate Tax Branch within a stipulated timeframe.

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