By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Probate Estate Administration Attorney and Law Firm In our last post about finalizing an estate, I discussed several key obligations that New Jersey estate and probate laws placed upon an executor or administrator. Let’s continue the discussion. One of the benefits of making partial distributions to beneficiaries is the shift of income from the estate to the beneficiaries. In making a partial distribution, the Executor or Administrator of the Estate can send a Form K-1 to the beneficiaries who, in turn, can claim estate income on their own individual Form 1040. This option is almost always preferable to having the estate income taxed by the estate at significantly higher …
How to Finalize and Wind Up a Probate Estate in New Jersey (Part VI)
By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Probate Estate Administration Attorney and Law Firm In our last post about finalizing an estate, I discussed several key obligations that New Jersey estate and probate laws placed upon an executor or administrator regarding formal accountings. Today let’s examine what takes place before the Court on the return date of the Order to Show Cause to approve a final accounting. On the return date of the Order to Show Cause, the Court will listen to arguments by the parties regarding the accounting and any exceptions filed against the accounting. If necessary, the Court will take testimony. If the dispute is significant enough, the Court, at its discretion, will enter …
How to Finalize and Wind Up a Probate Estate in New Jersey (Part V)
By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Probate Estate Administration Attorney and Law Firm In our last post about finalizing an estate, I discussed several key obligations that New Jersey estate and probate laws placed upon an executor or administrator. In this post, I’m going to provide some additional points I did not fully address in my earlier editions on final accountings. Once a Court gives approval of the final accounting, the surety bond can be discharged. This is done in one of two ways. First, the beneficiaries will be presented with a Refunding Bond and Release. If they fail to sign off Refunding Bonds and Releases, an application can be made to the court by …
How to Finalize and Wind Up a Probate Estate in New Jersey (Part IV)
By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Probate Estate Administration Attorney and Law Firm In our last post about finalizing an estate, I discussed several key obligations that New Jersey estate and probate laws placed upon an executor or administrator. Let’s continue our discussion today. Today I want to further discuss the topic of a formal accounting in estate administration. A formal accounting is typically generated in one of three circumstances: (1) a complex estate in which the beneficiaries and the Executor or Administrator agree upon the process; (2) where required by the Attorney General of New Jersey when a charity(ies) is involved; and (3) when agreement cannot be reached upon an informal account by estate …
How to Finalize and Wind Up a Probate Estate in New Jersey (Part III)
By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Probate Estate Administration Attorney and Law Firm In our last post about finalizing an estate, I discussed several key obligations that New Jersey estate and probate laws place upon an executor or administrator. Let’s continue our discussion today. I mentioned that you can legally close an estate without an accounting to beneficiaries but New Jersey probate laws clearly allow beneficiaries the right to an accounting regarding the affairs and transactions of the estate. This principle was affirmed in a NJ Superior Court decision which stated: “It is elementary that the Executor is under a duty to account for the assets of the estate coming to his or her possession …
How to Finalize and Wind Up a Probate Estate in New Jersey (Part II)
By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Probate Estate Administration Attorney and Law Firm In our last post about finalizing an estate, I discussed several key obligations that New Jersey estate and probate laws placed upon an executor or administrator. Let’s continue the discussion. Distribution of Estate to Beneficiaries What is the role of the Executor in getting the assets of the estate to the beneficiaries? The answer often depends on the nature of the assets to be distributed. There is distribution of non-probate assets, (2) distribution of specific bequests, (3) distribution of the residuary estate. While perhaps surprising to many readers, non-probate assets are outside the scope of an Executor or Administrator’s responsibility to the …
New Jersey’s New Revised Uniform LLA
By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Business and Corporation Law Firm New Jersey adopted the Revised Uniform Limited Liability Act (NJRULLCA). Since March 1, 2014, NJRULLCA has governed all limited liability companies (LLC’s) in New Jersey, replacing the state’s original Limited Liability Company Act. This is a significant development in New Jersey business law because closely held businesses represent the predominant form of new business entities formed in this state. There is virtually no limit on what type of businesses may be formed as an LLC, including real estate, food services, healthcare, insurance, apparel, automobile, financial services, technology and entertainment, among many others. The following is a summary of key changes made to the laws …
Bill Would Outlaw Mandatory Arbitration in Consumer Contracts
By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Arbitration Law Firm This article appeared in the New Jersey Law Journal on February 6, 2015. A trio of New Jersey lawmakers is sponsoring legislation that would bar companies from forcing customers to sign contracts in which they waive their rights to sue and instead must pursue any claims through arbitration. The Assembly Consumer Affairs Committee recommended passage of the bill, A4097, in a 3-1 vote Feb. 5. The bill is sponsored by the three Democrats on the committee—Chairman Paul Moriarty, D-Gloucester, and Assemblymen Patrick Diegnan Jr., D-Middlesex, and Charles Mainor, D-Hudson. The bill would amend the state’s Truth-in-Consumer Contract, Warranty and Notice Act to prohibit consumer contracts from …
How to Finalize and Wind Up a Probate Estate in New Jersey (Part I)
By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Probate Estate Administration Attorney and Law Firm By statute and case law, the Executor under a Last Will is required to settle a decedent’s estate expeditiously and efficiently and to distribute estate assets to designated beneficiaries. After collecting and then itemizing estate assets and paying the decedent’s debts and death taxes, the Executor or Administrator should do what is necessary to close out the estate. In order to accomplish this goal, the Executor or Administrator must account to the estate beneficiaries when he or she proposes to be officially discharged from this position. An estate can be closed in one of four fashions: (1) the funds can simply be …
What Happened to Mom’s Diamond Earrings
By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Wills Attorney I have drafted many hundreds if not thousands of Last Wills and Testaments for clients over the years. I have represented executors and administrators in the estates of individuals who have passed on. Based upon my experience, I can say with certainty that one common issue that often presents itself had to do with “personal property”. Why is it that personal property becomes the source of so many problems since often the property has little to no monetary value. I can’t answer that except to tell you that personal property is the property that causes the most mess! Personal property is typically comprised of items such as …