Estate of Laffey v. Director, Division of Taxation

LASSER, P.J.T.C.

Taxpayer contests a New Jersey transfer inheritance tax (N.J.S.A. 54:3-1 et seq.) deficiency assessment of $12,280.62 imposed on decedent’s transfer to his spouse of that portion of his estate representing the residual portion of the marital trust. This matter is before the court on cross-motions for summary judgment. The facts are not in dispute.

Mr. Laffey died on March 20, 1982. His will created two trusts, a marital trust and a residual trust. Paragraph Fourth of Mr. Laffey’s will created the marital trust, which was to be funded in an amount equal to the maximum marital…