New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX
Subchapter 7 - DEDUCTION
Section 18:26-7.10 - Executor's and administrator's expenses

(a) In the absence of a judgment of the court exercising jurisdiction over the probate of an estate, the deduction for executor or administrator commissions is determined in accordance with N.J.S.A. 3B:18-14as of the date of death of decedent as follows:

First $ 200,000 of corpus -- 5 percent

Next $ 800,000 of corpus -- 3 1/2 percent

Excess over $ 1,000,000 of corpus -- 2 percent

If more than one executor or administrator has been appointed, each additional executor or administrator may take an additional one percent of all corpus provided that no one executor or administrator shall be entitled to any greater commission than that which would be allowed if there were but one executor or administrator.

(b) Where a formal account is filed with the court exercising jurisdiction over the probate of an estate, in accordance with the Rules of the Court, and the amount allowed by the court for executor or administrator commissions is greater than the amount previously determined by the Transfer Inheritance Tax Branch, the fiduciary must forward a plain copy of the judgment allowing commissions to the Branch. The Transfer Inheritance Tax Branch will apply the amount or rate set forth by the court in its judgment to the value of the revised assessment of the property on which the allowance of the court is based, as of the date of death. However, the value of any property excluded from the New Jersey transfer inheritance tax will be excluded from the computation. See N.J.A.C. 18:26-7.1. If the Branch makes an assessment denying executor or administrator commissions, a written protest must be submitted to the Branch within 90 days in accordance with N.J.S.A. 54:49-18 and N.J.A.C. 18:26-12.9in order for the Branch to consider a subsequent court judgment allowing the commissions. In order for the Branch to reopen an assessment subsequent to a judgment, a copy of the account must be filed with the Branch at the time of the filing with the court and a copy of the judgment specifying the rates to be applied to corpus must be forwarded to the Branch.

(c) In the absence of a judgment of the court exercising probate jurisdiction over the estate allowing otherwise, the value of property that is held by the decedent and another as joint tenants with right of survivorship, as trustee for, or payable on death to another or which has been the subject of an inter vivos transfer, in contemplation of, or to take effect in possession or enjoyment at or after death, is to be excluded from the amount on which an executor's or administrator's commissions is computed.

(d) Executor's or administrator's commissions are only allowed on real estate that is actually sold by the executor or administrator or which is expressly directed to be sold by the terms of the decedent's will. The real estate must be sold by the representative and not the beneficiary or beneficiaries in order to qualify.

(e) In the absence of a judgment of the court exercising probate jurisdiction over the estate, and the filing of a plain copy thereof with the Transfer Inheritance Tax Branch, the provisions of N.J.S.A. 3B:18-16are not considered in the determination of the amount allowable as a deduction.