Interesting case....62 yr old client died and had voluntarily named his ex-spouse (57) as the beneficiary of his Inherited IRA from his mother ($450k) and his other IRA of $200k that was received under a QDRO from the same ex-spouse.
Assuming these are the only assets she gets, will she owe NJ inheritance tax on the full $650,000? In addition, since she'd probably have to pull the $100k of taxes from the accounts it seems as though she would also owe income tax on that amount as well. Especially with regard to the $200k that she had originally given to the ex and is now getting back, the inheritance tax seems particularly unfair.
Am I missing something?