THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
Bulletin: NJ000030
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Bulletin: NJ000030
Dear Associates:
The Taxpayer Relief Act of 1997 amended the "unified credit" available as to federal estate and gift taxes. As you are aware, formerly where the gross value of an estate was less than $600,000 as computed for federal estate tax purposes we did not require proof of payment of the federal estate taxes before insuring a conveyance from the estate. The value of estate not subject to federal estate taxes has been increased and future increases will be phased in as follows:
| Decedents Dying in | Gross Estate Amount |
| 1998 | $625,000 |
| 1999 | $650,000 |
| 2000 and 2001 | $675,000 |
| 2002 and 2003 | $700,000 |
| 2004 | $850,000 |
| 2005 | $950,000 |
| 2006 | $1,000,000 |
Please remember that "credit" amount can be reduced by gifts made during the decedents life. Please continue to follow our standard underwriting guidelines in obtaining satisfactory proof as to the value of the estate as computed under the federal law, which is different than the value of the estate as computer under New Jersey's Inheritance Tax Law.
References
- Bulletins Replaced:
- None
- Related Bulletins:
- Underwriting Manual:
- Exceptions Manual:
- None
- Forms:
- None