N.J. Admin. Code § 18:26-8.16

Current through Register Vol. 56, No. 21, November 4, 2024

Section 18:26-8.16 - Stocks, bonds, mutual funds, and securities

(a) The value of stocks, bonds, and securities listed on any stock exchange is appraised on the basis of the intermediate price between the low and high price prevailing on the date of death.

1. If there were no sales of stocks, bonds, and securities listed on a stock exchange on the date of death, either the mean between the highest and lowest selling price for the previous day, or the nearest trading day prior to the date of death, or the prorated value used for Federal estate tax purposes reflecting the mean between the highest and lowest selling price on the nearest trading dates prior to and subsequent to the date of death may be used. The Alternative Valuation Date method of valuing stocks and bonds for Federal estate tax purposes is, however, not applicable for New Jersey transfer inheritance tax purposes. All of the assets must be valued using the same method;

2. Where stock on the date of death or thereafter is selling "ex dividend," the dividend is required to be added to the taxable estate in addition to the quoted value of the stock.

(b) The value of stocks and bonds that are sold infrequently or in inconsequential numbers may not be ascertainable by reference to the sales price on an exchange since the stock exchange value reflected by quotations is nothing more than evidence of true value under ordinary and normal conditions. Therefore, in cases where stocks or bonds are infrequently traded or sold in small quantities it is necessary to resort to financial statements along with any other pertinent data to determine the value at date of death.

(c) Shares of mutual funds are appraised at the bid price prevailing on the date of death, and in the event there is no bid price if the date of death falls on a holiday or Saturday or Sunday, the values shall be those provided in (a) above.

(d) The market value of rare or unlisted securities is established by information furnished by brokers regularly dealing in such securities, officers of the corporations involved, or other documentary proof satisfactory to the Director.

N.J. Admin. Code § 18:26-8.16

Adopted by 50 N.J.R. 1624(a), effective 7/16/2018