What happens if you die without a Last Will? That’s a fair question. When no Will or trust exists, things get much more complex. A person’s real and personal property is not distributed according to the person’s unwritten intentions; rather, it is distributed according to the statutes of New Jersey. That is why estate planning with a Will or trust is so important. If a person dies with assets but no will or trust, an administrator for his/her estate must be appointed by a court.
If a person owns assets or property jointly with another person or in trust, probate and estate administration is not necessary because ownership automatically goes to the surviving owner. Tax filings may be required however.
If You Die Without a Will, Who Gets Your Estate Under New Jersey Laws?
When no will exists, the statutes of New Jersey provide for the distribution of property to heirs, that is, by intestate succession.
How will your property be divided if you have no will? The chart below shows how an estate is distributed in New Jersey if you do not leave a last will. If you die without a will and are a resident of New Jersey, State law provides the manner for distributing your property. Your net estate remaining after deduction of debts, taxes and family exemptions, etc., will be distributed to your heirs as follows.
- Real estate and other property owned jointly by husband and wife is automatically owned by the survivor spouse.
• Real estate and property with a beneficiary designation goes to the person designated as the beneficiary.
• A surviving wife or husband receives the entirety of the remaining estate if they have common descendant’s (children) born while the husband and wife are together and legally married. If the decedent has descendants and a surviving spouse but the descendants are from another relationship, separate from the surviving spouse then the surviving spouse is entitled to the first 25% of the decedents Estate but not less than $50,000 or more than $200,000. Thereafter 50% of the remaining assets of the decedent’s estate go to the surviving spouse and 50% is divided among the surviving descendants (children) equally.
If the decedent leaves a surviving spouse, no children but a surviving parent(s) then the surviving spouse is entitled to 25% of the descendants estate but not less than $50,000 or more than $200,000. The remaining assets of the intestate estate go 75% to the surviving spouse and 25% to the decedents parents.
If there are no surviving children or parents then the surviving spouse gets 100% of the decedents estate.
• A child or children receive one half of the probate estate balance divided equally, by representation.
• If there are Grandchildren, they take their deceased parent’s share of the estate equally
More remote cases are not covered here. Remember, the State of New Jersey takes your property if you leave no wife or husband; child or his/her descendants; parent; brother or sister and their descendants; grandparent(s); uncle, aunt or their children; or their grandchildren.
If any person fails to survive the decedent by 120 hours he or she is deemed to have predeceased the decedent for purposes of intestate succession.
Estate Administration and Probate of a Small Estate When There is No Last Will
If there is a surviving spouse or domestic partner and the value of all property in the name of the decedent does not exceed $50,000.00 a simple Affidavit of Surviving Spouse, Civil Union or Domestic Partner can be issued by the County Surrogate allowing the husband, wife, partner to dispose of the property without formal estate administration. When there is no spouse or domestic partner and the property does not exceed $50,000.00 in value, a close relative can file an affidavit to handle the disposition of the estate.
If total assets exceed $50,000.00, the County Surrogate must appoint an administrator. Before someone is appointed, all next of kin must renounce their rights to be administrator. The decision to renunciate should only be made after consultation with an experienced New Jersey Estate Administration, Probate attorney. Significant legal rights will be affected by an ill advised refusal to serve as an administrator. I’ve handled cases where the worst decision made by a family member was to renunciate their right to administer a loved one’s estate. Contact me at firstname.lastname@example.org or call me toll-free at (855) 376-5291 should you have any questions about the issue of renunciation to be estate administrator.
When probate is required, an interested party must file an affidavit of administration no sooner than ten (10) days after the date of a person’s death. The Surrogate’s Office needs a number of documents from the individual who applies to be the Administrator of the Estate in order to process the application. When an individual submits the required information to be the administrator, the next step involves a determination of whether there is the need for an estate bond. The bond acts as an insurance policy that the Administrator will perform his or her duties. Once the bond is returned, the Administrator will receive letters of administration and administrator certificates. Estate bonding involves a financial evaluation of the prospective administrator by a bonding company. In some cases, an Administrator will be denied a bond and will not be able to serve as a personal representative to the estate if their credit rating is not acceptable. Should this happen, then immediately contact Fredrick P. Niemann, Esq. at email@example.com or call him toll-free at (855) 376-5291. The firm has served as substitute administrators in appropriate cases.
New Jersey law determines who inherits the estate of a person dying without a will. It is determined according to kinship, meaning blood line. When there are no known relatives, the estate is considered to be in escheat and all property goes to the State of New Jersey. Escheating to New Jersey is not a good thing. To learn how to avoid escheating your estate to New Jersey, call Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or e-mail him at firstname.lastname@example.org and set up an office consultation at your convenience.
What Happens if you Die Without a Last Will in NJ (Part I)
Dying Without a Revocable Living Trust
Who May Act as the Administrator of an Estate When There is No Will?
Behind a spouse or domestic partner, the children of the deceased are next in line to act as administrator. Normally, only one child can act in this capacity; for example, if a decedent has four children, three children must renounce in favor of the other. If no children survive the deceased but he/she is survived by both parents, one parent must renounce in favor of the other. If no child or parent survives the deceased but he/she is survived by grandchildren, the grandchildren must renounce in favor of the third. If no children, parents, or grandchildren survive the deceased but he/she is survived by brothers/sisters, then the brothers/sisters must renounce in favor of the fifth. As previously stated, renunciation is a serious decision that should be carefully evaluated in order to protect and ensure that all functions of executor/administrator are performed properly. For clarification of this important issue contact Fredrick Niemann, Estate Administration Attorney at email@example.com or call him at (855) 376-5291.
Never Ever…Ever Renounce Being an Executor or Administrator
Information Required By the County Surrogate to Be Appointed as the Administrator of an Estate
The next step involves whether a bond should be posted. The bond acts as an insurance policy that the administrator will perform his or her duties. Estate bonding involves a financial evaluation of the prospective administration by a bonding company. In some cases, an administrator will be denied a bond and will not be able to serve as a representative to the estate if their credit rating is not acceptable. In that case, contact us to discuss having Hanlon Niemann serve as substitute administrators.
Who are the Beneficiaries of an Estate When No Will Exists?
When there is no Will, the law defines who inherits an estate:
A spouse, civil union partner, or domestic partner and children of the decedent or their descendants are given first priority. Thereafter, grandchildren take their deceased parent’s share unless all children are deceased, then all grandchildren share equally.
If there is no spouse, civil union partner, or domestic partner then the surviving parents inherit the entire estate. If no parents survive, brothers and sisters will then take equally. Nieces and nephews will take their deceased parent’s share.
The State of New Jersey takes your property if you have no civil union or domestic partner or spouse; child or descendant; brother or sister or their descendant; grandparent; or uncle or aunt or their children or their grandchildren. The estate is considered to be escheat. Escheat in New Jersey is not a good thing to happen to you or your family. That is why a properly and well thought out Will or Trust is so important as part of a New Jersey Estate Plan.
With Fredrick P. Niemann, Esq., our experienced New Jersey Estate Administration and Probate Attorneys and staff can be a tremendous resource to make the administration process easier and efficient. Making a decision to be an Administrator of a New Jersey Estate or renouncing your right to be an Administrator should not be hastily done. You may be placing substantial risk upon yourself or giving up valuable rights with an inappropriate decision.
Written by New Jersey Estate Administration, Probate Lawyer Fredrick P. Niemann, Esq.
Estate Administration and Probate Lawyers serving these New Jersey Counties:
Monmouth County, Ocean County, Essex County, Cape May County, Mercer County, Middlesex County, Bergen County, Morris County, Burlington County, Union County, Somerset County, Hudson County, Passaic County