Short answer
Plan for months. The Division of Taxation's executor guide says that once a return is filed, processing takes at least several months, and audits add several more. About 40 to 50 percent of returns need extra attention. Returns are handled in the order received. The guide gives no separate time for the L-9 request.
What the Division says about timing
The Division of Taxation's executor guide states that once you have filed a return with the Division, you should plan for processing to take at least several months. If a return must be audited, it may take several months longer. The guide says about 40 to 50 percent of returns require additional attention in the form of an audit, and that returns are processed and audited in the order received. It adds that payments are usually posted within two weeks, but that processing a return and issuing waivers takes longer.
What the guide does not say
The guide does not give a separate timeline for the L-9 request used by estates with only exempt beneficiaries, and the waiver pages I reviewed give no processing time. So any promise of a specific number of weeks is a guess. The Division's inheritance tax hotline, listed in the guide as 609-292-5033, is the place to ask current questions. The guide lists the hours as Monday to Friday, 8:30 a.m. to 4:30 p.m. Eastern.
Build the wait into the contract
If you already have a buyer, tell the buyer's attorney and the title company about the waiver on day one. Ask for a closing date tied to receipt of the waiver, or a clear right to extend. A fixed date that arrives before the waiver does can lead to a canceled contract or a penalty clause. Estate attorneys know how local title companies treat this, and they can draft the language.
What families do while waiting
The house still costs money. Taxes, insurance, utilities and basic upkeep continue, and the guide notes that banks may release up to 50 percent of funds on hand before a waiver is received, but only to the executor, administrator or a joint owner, and that applies to financial accounts, not real estate. Keep receipts for carrying costs, since the estate may be able to reimburse the person who pays them. Ask the attorney how to document it.
A buyer who can wait for the paperwork
Some cash buyers can sign a contract and then close once the estate is ready, instead of requiring a fast turnaround. Kaizen Home Buyers makes cash offers on New Jersey houses as-is, with no repairs and no agent commission. We can make an offer within 24 hours and close in 14 to 30 days, or on the date you choose, which can be set after the waiver arrives. Call 267-329-0084. An agent listing is still an option to compare.