Start with authority
The person signing the deed must have legal authority: an executor with letters testamentary from the Surrogate, or an administrator with letters of administration if there was no will. Title agencies will require certified copies dated within a reasonable period. Trustees selling from a trust need the trust instrument or a certification of trust.
The inheritance tax lien
New Jersey inheritance tax is a lien on the decedent’s real property for fifteen years from the date of death unless released. A tax waiver (Form 0-1) from the Division of Taxation, or a self-executing Form L-9 for Class A beneficiaries (spouse, children, parents, grandchildren) where no tax is due, is needed to record a deed free of the lien.
When the waiver is not ready
Waivers can take months. Counsel and the title agency frequently arrange an escrow of estimated tax from proceeds so the sale can close on time, with the waiver obtained afterward. Discuss this option as soon as the estate lists the property.
Estate tax versus inheritance tax
New Jersey repealed its estate tax for decedents dying on or after January 1, 2018, but the inheritance tax remains for transfers to non-Class A beneficiaries. Federal estate tax has separate, much higher thresholds. Confirm which apply with the estate’s counsel or accountant.
The deed itself
An executor’s deed conveys the property from the estate. If title was in a trust, the trustee conveys. If heirs took title directly (property passed by will without administration of the real estate), each heir—and their spouse, where applicable—may need to sign. Getting this right at the start avoids re-drafting at the table.
Out-of-state heirs and signers
Mobile notaries and, where permitted, remote online notarization make it practical to gather signatures from heirs in other states. Plan the signing logistics before scheduling closing.
This article is general information about New Jersey real estate transactions and is not legal, tax, or financial advice. Laws, regulations, and fee schedules change; confirm current requirements with your attorney. Crystal Alliance Title is a title insurance agency, not a law firm.
