Tax Court: Valerie Shedlock and Judith Solan, Coexecutors of the Estate of Anthony Calleo v. Dir., Div. of Taxation,
Docket No.008644-2018; opinion by Bianco, J.T.C., decided April 30, 2019.For plaintiffs – Stephen L. Klein (Law Office of Stephen L. Klein,attorney); for defendant – Miles Eckardt (Gurbir S. Grewal,Attorney General of New Jersey, attorney).
Plaintiffs, Valerie Shedlock and Judith Solan (“Heirs”), moved to invalidate defendant’s notice of assessment and seek a refund of taxes, and interest paid, and costs of suit. The Heirs argued that defendant erroneously included the real property located at 270 Farnham Avenue, Lodi, New Jersey (“Subject Property”) as a taxable asset of the estate of the Anthony Calleo (“Decedent”) for inheritance tax purposes. Defendant, Director of the Division of Taxation (“Director”), moved to dismiss the complaint with prejudice claiming that, the transfer of the Subject Property was intended to take effect upon the Decedent’s death, and is therefore subject to the inheritance tax. The court determined that the motives of the Decedent were inconsequential where the transfer of a property was made more than three years prior to the decedent’s death. The court further determined that because the Decedent transferred and conveyed his right, title and interest in the Subject Property more than three years before death, the transfer was not intended to take effect at or after the Decedent’s death. Therefore, the Heirs’ motion to invalidate the Director’s notice of assessment and refund taxes and interest paid was granted. However, the Heirs’ demand for costs of suit was denied.