In Re the Estate of Romnes

The narrow but perplexing issue in this case is whether federal income taxes payable by a surviving spouse upon a pension annuity should be taken into account in its valuation for New Jersey State Transfer Inheritance Tax purposes under N. J. 8. A. 54:34-1 et seq. The annuitant’s pension had been created under a deferred compensation program established by decedent’s employer and, because it was “qualified” under the federal internal revenue laws, the federal taxes ordinarily due on earned income were not required to be paid by decedent during his lifetime. Upon the death of decedent,…