The process of managing and distributing the assets of the estate of a decedent who has died intestate (without w will).
WHAT IF THERE IS NO WILL?
Estate assets are distributed according to laws governing intestacy, which vary according to individual circumstances.
An administrator will be appointed upon application to the Surrogate's Court. Depending upon individual circumstance of the appointment, a surety bond may be required.
Distribution of the Estate assets cannot be made until all of the Estate debts have been determined and paid.
WHAT TO DO FIRST:
- Contact Social Security
- If the decedent was a veteran, investigate veteran's benefits
- Obtain one or more original death certificates, with a seal, from the funeral director.
- Secure all estate assets, especially the house and valuables. If there are multiple heirs, an inventory may be prudent.
- Start a checklist of estate debts, such as medical expenses, charge accounts, utility bills, etc.
- Start a checklist of estate assets, such as bank accounts, stocks, credit unions, etc.
- Arrange for pickup or forwarding of mail.
AS ADMINISTRATOR:
- Locate and protect assets.
- Apply for administration with the Surrogate's office by bringing
- Original death certificate
- Addresses and names of all next-of-kin
- Administrator cannot be appointed until the 6th day after death, however application for administration can be made at any time.
- Surrogate's certificates are issued by the Surrogate's office and are used to transfer assets of the decedent's estate. They are the Administrator's authority to act for the estate.
Except for a sole beneficiary situation, an administrator may wish to open an estate bank account to provide accountability of estate transactions. An identification number may be required and can obtained from the IRS at 1-(866)-816-2065.
The administrator must ensure that all debts have been or can be paid by the estate before any distribution, even of personality, can be made.
Refunding bonds and releases should be obtained from each heir receiving from the estate and filed with the Surrogate's office to protect the administrator from future liability and to release surety bond |
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Currently, many estates do not have an obligation for federal or New Jersey inheritance taxes if the estate is under $1,000,000 gross value. However, the administrator may have to file Federal and State income tax returns for the year of death.
The final distribution is made when the real estate, if any, has been sold or transferred, all debts and taxes paid and refunding bonds and releases have been filed with the Surrogate's office.
If any person dies intestate, administration of the intestate's estate shall be granted to the surviving spouse of the decedent, if the spouse is willing to accept the administration. If not, or if there is no surviving spouse, then to the remaining heirs of the intestate.
The intestate share of surviving spouse is:
- If there is no surviving issue or parent of the decedent, the entire intestate estate;
- If there is no surviving issue but the decedent is survived by a parent(s), the first $50,000.00, plus one-half of the balance of the intestate estate;
- If there are surviving issue all of whom are issue of the surviving spouse also, the first $50,000.00, plus one-half of the balance of the intestate estate;
- If there are surviving issue one or more of whom are not issue of the surviving spouse, one-half of the intestate estate.
The part of the intestate estate not passing to the surviving spouse, or the entire intestate estate if there is no surviving spouse, passes as follows:
To the issue of the decedent, if they are all of the same degree of kinship to the decedent they take equally, but if of unequal degree, then those of more remote degree take by representation.
If there is no surviving issue, to the decedent's parent or parents equally.
If there is no surviving issue or parent, to the issue of the parents or either of them by representation.
If there is no surviving issue, parent or issue of a parent, but the decedent is survived by one or more grandparents distribution is through paternal and/or maternal grandparents.
BONDS
A surety bond is required in most cases for administrators. The bond protects the creditors and heirs of the estate.
Bond must continue in effect until the estate is settled and a Release of Surety is issued by the Surrogate. Bond premiums are an expense of the estate.
SMALL ESTATE AFFIDAVIT
For estates under $20,000, a spouse can be authorized by Affidavit to transfer car titles and other assets. Each item to be transferred must be individually listed. For relatives other than spouse, the limit is $10,000. |