N.J. Admin. Code § 18:26-7.5
Current through Register Vol. 56, No. 21, November 4, 2024
Any debt of a decedent owing at the date of death and covered by the purchase of life insurance payable to a creditor of the decedent, in order to liquidate a debt arising from the acquisition of property for which the decedent was liable to such creditor, is not allowed as a deduction, because the debt is regarded as extinguished at the date of death by payment to said creditor of the insurance proceeds and, therefore, the decedent's estate is not diminished by the amount of the debt.
N.J. Admin. Code § 18:26-7.5