To skip navigationdra
dra
State of Nh Revenue Dept
 
photo of Revenue building
IndividualsBusinessLocal Government


efile




Frequently Asked Questions > Legacy & Succession Taxes
 

Note: The Legacy and Succession Tax (RSA 86) was repealed, effective for deaths occurring on or after January 1, 2003; therefore, this tax would not apply.

 

Who pays Legacy & Succession Taxes?
The non-lineal descendants or ascendants, who upon death of the owner become the new owner of assets or property whether with or without a will or trust. The following table lists taxable and non-taxable legatees:

Taxable Legatees
Brother/Sister
Aunt/Uncle
Niece/Nephew/Cousin
Mother-in-Law/Father-in-Law
Daughter-In-Law/Son-in-Law (if divorced or remarried)
Divorced Wife/Divorced Husband
Non-Blood Relative
Friends/Neighbors
Anyone Not Listed in the Non-Taxable Column

Non-Taxable Legatees
Mother/Father
Son/Daughter
Stepson/Stepdaughter (current marriage)
Legally Adopted Son/Legally Adopted Daughter (adopted before reaching the age of majority)
Husband/Wife
Common Law Spouse (decreed under RSA 457:39)
Grandmother/Grandfather
Grandson/Granddaughter
Step-grandson/Step-granddaughter (current marriage)
Step-great-grandson/Step-great-granddaughter (current marriage)
Daughter-in-Law/Son-in-Law (current marriage)
Care of cemetery in NH
City or Town for public, municipal purposes
Public Charities (IRS 501(c)(3))
Child living in homestead for 10 consecutive years prior to his/her 15th birthday

Refer to RSA 86:6 for further clarification.

Who must file the return?
The executor or administrator must file a Legacy and Succession Tax return for the estate of a decedent if a tax liability occurs. A tax liability occurs when a bequest, joint transfer, trust, transfer within two years of death or the rest and residue is granted to a taxable legatee. You are only required to file a DP-145 tax return if there is a taxable legatee(s).

When are the tax returns due?
The Legacy & Succession Tax, NH Estate Tax, and Non-Resident Personal Property Tax returns are all due nine months from the date of death.

Who do I contact with questions?
Audit Division, PO Box 457, Concord, NH 03302-0457, or call (603) 230-5030.

If the tax return for Legacy & Succession Tax, NH Estate Tax, or the NH Personal Property Tax cannot be filed timely, how do I get an extension?
To obtain an extension of time to file a Legacy and Succession tax return or NH Personal Property tax return, the extension request must be filed with the department on or before the original due date of the return and include 100% of the tax due. The extension is to file the return only, not for an extension to pay the tax. The NH Estate tax is paid on an estimated form and a copy of the federal approved extension is attached to the NH Estate tax return when filed.

Is a jointly held property subject to legacy and succession tax?
Yes, if the survivor is a taxable legatee pursuant to the who must file chart under the "who pays it" section.

What is an Estate Tax?
A tax imposed upon the transfer of assets of every estate which is subject to an estate tax under the provisions of the United States Internal Revenue Code of 1986.

Who must file a NH-706 Estate Tax Return?
The executor or administrator must file a NH 706 Estate Tax Return if: the resident decedent has a total gross estate that exceeds certain amounts as follows:

Calendar Year Gross Amount Exceeds:

2000 & 2001 $ 675,000
2002 - 2004 $1,000,000

Note: for deaths occurring on or after Jan. 1, 2005, a NH-706 Estate Tax Return is not required to be filed due to the federal repeal of the estate death tax credit.

IRC Section: 2035 Effective 08/05/97 RSA 87:1

Non-residents who own real estate and/or tangible personal property in NH must also file a form NH-706 and pay the tax (see next section).

Who must file a Non-Resident Personal Property Transfer Tax Return?
The executor or administrator of any non-resident decedent whose death occurred prior to January 1, 2003 owning tangible personal property in New Hampshire must file a return. A non-resident decedent is someone who did not claim New Hampshire as their legal residence. Tangible personal property is personal property which has physical substance such as furniture, boats, cars etc. Stocks or bank accounts are not tangible personal property.

How do I know if a taxable transfer occurs?
Any transfer to a taxable person that occurs within two years prior to the decedent's date of death is taxable.

Who do I contact with my questions about probating an estate or the Probate Court?
You should contact the Probate Court in the County where the decedent resided or visit the Probate Court's Web site at www.courts.state.nh.us/probate/index.htm.

Adobe Acrobat Reader Symbol Adobe Acrobat Reader format. You can download a free reader from Adobe.

 


 

© NH Department of Revenue Administration ~ 109 Pleasant Street ~ Concord, New Hampshire 03301
Phone: 603-230-5000 ~ Fax: 603-230-5945 ~ TDD Access Relay NH: 1-800-735-2964
Municipal Services ~ Phone: 603-230-5090 ~ Fax: 603-230-5947
Property Appraisal ~ Phone: 603-230-5950 ~ Fax: 603-230-5943
Collections ~ Phone: 603-230-5900 ~ Fax: 603-230-5946
Hearings Bureau ~ Phone 603-230-5002 ~ Fax 603-230-5948
Contact the Webmaster

Copyright © State of New Hampshire, 2007