ADMINISTRATOR OF A DECEDENT’S ESTATE IN PROBATE COURT- DUTIES AND
RESPONSIBILITIES
RESPONSIBILITIES
Compiled by Kenneth A. Vercammen,
Esq.
Esq.
When a person dies without having a Will that is called intestate.
The
administration must be opened in the County where the decedent resided at
his/her death.
administration must be opened in the County where the decedent resided at
his/her death.
The person who is seeking to qualify as Administrator must bring into
the Surrogate's office a certified copy of the death certificate, a
complete list of names and addresses of all immediate next of kin of the
decedent, and an exact amount of every asset in the decedent's name alone. Your
right to act as an Administrator is defined by law in the following
relationship order:
the Surrogate's office a certified copy of the death certificate, a
complete list of names and addresses of all immediate next of kin of the
decedent, and an exact amount of every asset in the decedent's name alone. Your
right to act as an Administrator is defined by law in the following
relationship order:
• FIRST - Spouse of the decedent
• SECOND - Children of the decedent
• THIRD - Parents of the decedent
• FOURTH - Brothers and sisters of the decedent
• FIFTH - Children of a deceased brother or sister
Persons having a
prior or equal right to act as Administrator under the law will be required to renounce their right to act.
prior or equal right to act as Administrator under the law will be required to renounce their right to act.
http://www.co.gloucester.nj.us/depts/s/surrogate/services/admaffidavits.asp
Who has
the right to be appointed when an individual dies without a Will? The
next of kin of the decedent have the right to be appointed. This is
determined by statute. The surviving spouse or domestic partner has the first
right. Children of the decedent are next. However, any heir may be appointed
assuming they obtain the appropriate renunciations from any other heir who has
an equal or prior right to be appointed.
the right to be appointed when an individual dies without a Will? The
next of kin of the decedent have the right to be appointed. This is
determined by statute. The surviving spouse or domestic partner has the first
right. Children of the decedent are next. However, any heir may be appointed
assuming they obtain the appropriate renunciations from any other heir who has
an equal or prior right to be appointed.
If all
the children agree that one person shall serve as administrator, the Attorney
will prepare Renunciations for the other children to sign. However, if some of
the children will not sign, you will need to have your attorney file and
Complaint and Order to Show Cause to have you appointed as the Administrator.
the children agree that one person shall serve as administrator, the Attorney
will prepare Renunciations for the other children to sign. However, if some of
the children will not sign, you will need to have your attorney file and
Complaint and Order to Show Cause to have you appointed as the Administrator.
- What do I bring if the
decedent dies without a will? You must still go through the
probate process. You will be required to bring:
decedent dies without a will? You must still go through the
probate process. You will be required to bring:
• A
certified death certificate;
certified death certificate;
• Renunciations,
if applicable, from parties not willing to serve as administrator.
if applicable, from parties not willing to serve as administrator.
• A list
of the decedent’s assets and an approximate value of each.
of the decedent’s assets and an approximate value of each.
◦
You must provide the Make, Model and Vin number for
any car in the decedent’s name alone
You must provide the Make, Model and Vin number for
any car in the decedent’s name alone
◦
You must provide Bank Account information i.e. Bank
name, Account number and most recent statement.
You must provide Bank Account information i.e. Bank
name, Account number and most recent statement.
http://www.co.middlesex.nj.us/Surrogate/faq.asp
In most cases, a surety bond will be required in order to appoint an Administrator.
The purpose of the bond is to protect all heirs and creditors of the
estate. Pursuant to New Jersey statutes, N.J. S.A. 3B:15 15-1, the order
of appointment includes a requirement that the Administrator post bond.
The Surrogate sets the bond amount based on the total amount of the
estate. The applicant may choose the insurance agency they wish to work
with. The bonding agency may require an attorney to represent the estate
to assure payment of the bond premium. The bond must be executed before
the Administrator will be appointed. Once the estate is closed and all
the debt has been paid and the money has been distributed, a Refunding Bond and Release must be
filled out by every beneficiary of the estate, including the Administrator, in
order to get released from the bond.
The purpose of the bond is to protect all heirs and creditors of the
estate. Pursuant to New Jersey statutes, N.J. S.A. 3B:15 15-1, the order
of appointment includes a requirement that the Administrator post bond.
The Surrogate sets the bond amount based on the total amount of the
estate. The applicant may choose the insurance agency they wish to work
with. The bonding agency may require an attorney to represent the estate
to assure payment of the bond premium. The bond must be executed before
the Administrator will be appointed. Once the estate is closed and all
the debt has been paid and the money has been distributed, a Refunding Bond and Release must be
filled out by every beneficiary of the estate, including the Administrator, in
order to get released from the bond.
If the applicant qualifies as the Administrator, Letters of
Administration and a short certificate will be issued by the Surrogate.
A short certificate is the document the Administrator will use as proof of
their authority to transfer or sell the decedent's assets. Source: http://www.co.gloucester.nj.us/depts/s/surrogate/services/admaffidavits.asp
Administration and a short certificate will be issued by the Surrogate.
A short certificate is the document the Administrator will use as proof of
their authority to transfer or sell the decedent's assets. Source: http://www.co.gloucester.nj.us/depts/s/surrogate/services/admaffidavits.asp
What happens if I can’t find the Original Will?
If the
original will cannot be found, the next of kin to the deceased would come to
the Surrogate Court to make application for Administration.
original will cannot be found, the next of kin to the deceased would come to
the Surrogate Court to make application for Administration.
What
is a Surety Bond and why do I need to get one? A
surety bond is an insurance policy that protects the beneficiaries and
creditors of the estate. Administrators are required by law to obtain a surety
bond in order to be appointed. Executors may not be required to obtain a
surety bond if the will waives that requirement.
is a Surety Bond and why do I need to get one? A
surety bond is an insurance policy that protects the beneficiaries and
creditors of the estate. Administrators are required by law to obtain a surety
bond in order to be appointed. Executors may not be required to obtain a
surety bond if the will waives that requirement.
How do I get a Bond released?
The
administrator can be released from the surety bond in two ways:
administrator can be released from the surety bond in two ways:
Filing the original refunding bond and release
forms from all beneficiaries with the Surrogate Court and stamped copies with
the Insurance Company
With the approval of the Superior Court of a formal
accounting of the estate Source: http://www.co.middlesex.nj.us/Surrogate/faq.asp
Some
of the Duties of the Administrator in Estate Administration
of the Duties of the Administrator in Estate Administration
1.
Conduct a thorough search of the decedent's personal papers and effects
for any evidence, which might point you in the direction of a potential
creditor;
Conduct a thorough search of the decedent's personal papers and effects
for any evidence, which might point you in the direction of a potential
creditor;
2. Carefully examine the decedent's checkbook
and check register for recurring payments, as these may indicate an existing
debt;
and check register for recurring payments, as these may indicate an existing
debt;
3. Contact the issuer of each credit card that
the decedent had in his/her possession at the time of his/ her death;
the decedent had in his/her possession at the time of his/ her death;
4. Contact all parties who provided medical
care, treatment, or assistance to the decedent prior to his/her death;
care, treatment, or assistance to the decedent prior to his/her death;
Your
attorney will not be able to file the NJ inheritance tax return until it is
clear as to the amounts of the medical bills. Medical expenses can be deducted
in the inheritance tax.
attorney will not be able to file the NJ inheritance tax return until it is
clear as to the amounts of the medical bills. Medical expenses can be deducted
in the inheritance tax.
Under
United States Supreme Court Case, Tulsa Professional Collection Services,
Inc., v. Joanne Pope, Executrix of the Estate of H. Everett Pope, Jr., Deceased,
the Administrator/ Personal Representative in every estate is personally
responsible to provide actual notice to all known or "readily ascertainable"
creditors of the decedent. This means
that is your responsibility to diligently search for any "readily
ascertainable" creditors.
United States Supreme Court Case, Tulsa Professional Collection Services,
Inc., v. Joanne Pope, Executrix of the Estate of H. Everett Pope, Jr., Deceased,
the Administrator/ Personal Representative in every estate is personally
responsible to provide actual notice to all known or "readily ascertainable"
creditors of the decedent. This means
that is your responsibility to diligently search for any "readily
ascertainable" creditors.
Other
duties/ Administrator to Do
duties/ Administrator to Do
Let's
review the major duties involved-
review the major duties involved-
In General. The administrator's job is to (1)
administer the estate--i.e., collect and manage assets, file tax returns and
pay taxes and debts--and (2) distribute any assets or make any distributions of
bequests, whether personal or charitable in nature, as the deceased directed
(under the provisions of the Will). Let's take a look at some of the specific
steps involved and what these responsibilities can mean. Chronological order of
the various duties may vary.
administer the estate--i.e., collect and manage assets, file tax returns and
pay taxes and debts--and (2) distribute any assets or make any distributions of
bequests, whether personal or charitable in nature, as the deceased directed
(under the provisions of the Will). Let's take a look at some of the specific
steps involved and what these responsibilities can mean. Chronological order of
the various duties may vary.
Probate. An employer identification number
("EIN") must be obtained for the estate; this number must be included
on all returns and other tax documents having to do with the estate. The administrator should also file a written
notice with the IRS that he/she is serving as the fiduciary of the estate. This gives the administrator the authority to
deal with the IRS on the estate's behalf.
("EIN") must be obtained for the estate; this number must be included
on all returns and other tax documents having to do with the estate. The administrator should also file a written
notice with the IRS that he/she is serving as the fiduciary of the estate. This gives the administrator the authority to
deal with the IRS on the estate's behalf.
Pay the Debts. The claims of the
estate's creditors must be paid.
Sometimes a claim must be litigated to determine if it is valid. Any estate administration expenses, such as
attorneys', accountants' and appraisers' fees, must also be paid.
estate's creditors must be paid.
Sometimes a claim must be litigated to determine if it is valid. Any estate administration expenses, such as
attorneys', accountants' and appraisers' fees, must also be paid.
Manage the Estate. The administrator
takes legal title to the assets in the probate estate. The probate court will
sometimes require a public accounting of the estate assets. The assets of the
estate must be found and may have to be collected. As part of the asset
management function, the administrator may have to liquidate or run a business
or manage a securities portfolio. To sell marketable securities or real estate,
the administrator will have to obtain stock power, tax waivers, file
affidavits, and so on.
takes legal title to the assets in the probate estate. The probate court will
sometimes require a public accounting of the estate assets. The assets of the
estate must be found and may have to be collected. As part of the asset
management function, the administrator may have to liquidate or run a business
or manage a securities portfolio. To sell marketable securities or real estate,
the administrator will have to obtain stock power, tax waivers, file
affidavits, and so on.
Take Care of Tax Matters. The
administrator is legally responsible for filing necessary income and estate-tax
returns (federal and state) and for paying all death taxes (i.e., estate and
inheritance). The administrator can, in some cases be held personally liable
for unpaid taxes of the estate. Tax returns that will need to be filed can
include the estate's income tax return (both federal and state), the federal
estate-tax return, the state death tax return (estate and/or inheritance), and
the deceased's final income tax return (federal and state). Taxes usually must
be paid before other debts. In many instances, federal estate-tax returns are
not needed as the size of the estate will be under the amount for which a
federal estate-tax return is required.
administrator is legally responsible for filing necessary income and estate-tax
returns (federal and state) and for paying all death taxes (i.e., estate and
inheritance). The administrator can, in some cases be held personally liable
for unpaid taxes of the estate. Tax returns that will need to be filed can
include the estate's income tax return (both federal and state), the federal
estate-tax return, the state death tax return (estate and/or inheritance), and
the deceased's final income tax return (federal and state). Taxes usually must
be paid before other debts. In many instances, federal estate-tax returns are
not needed as the size of the estate will be under the amount for which a
federal estate-tax return is required.
Often
it is necessary to hire an appraiser to value certain assets of the estate,
such as a business, pension, or real estate, since estate taxes are based on
the "fair market" value of the assets. After the filing of the returns and payment
of taxes, the Internal Revenue Service will generally send some type of estate
closing letter accepting the return.
Occasionally, the return will be audited.
it is necessary to hire an appraiser to value certain assets of the estate,
such as a business, pension, or real estate, since estate taxes are based on
the "fair market" value of the assets. After the filing of the returns and payment
of taxes, the Internal Revenue Service will generally send some type of estate
closing letter accepting the return.
Occasionally, the return will be audited.
Distribute the Assets. After all debts and expenses have been paid,
the administrator will distribute the assets. Frequently, beneficiaries can
receive partial distributions of their inheritance without having to wait for
the closing of the estate.
the administrator will distribute the assets. Frequently, beneficiaries can
receive partial distributions of their inheritance without having to wait for
the closing of the estate.
Under
increasingly complex laws and rulings, particularly with respect to taxes, in
larger estates an administrator can be in charge for two or three years before
the estate administration is completed. If the job is to be done without
unnecessary cost and without causing undue hardship and delay for the
beneficiaries of the estate, the administrator should have an understanding of
the many problems involved and an organization created for settling estates. In
short, an administrator should have experience
increasingly complex laws and rulings, particularly with respect to taxes, in
larger estates an administrator can be in charge for two or three years before
the estate administration is completed. If the job is to be done without
unnecessary cost and without causing undue hardship and delay for the
beneficiaries of the estate, the administrator should have an understanding of
the many problems involved and an organization created for settling estates. In
short, an administrator should have experience
At
some point in time, you may be asked to serve as the administrator of the
estate of a relative or friend, or you may ask someone to serve as your
administrator. An administrator's job comes with many legal obligations. Under
certain circumstances, an administrator can even be held personally liable for
unpaid estate taxes. Let's review the major duties involved, which we've set
out below.
some point in time, you may be asked to serve as the administrator of the
estate of a relative or friend, or you may ask someone to serve as your
administrator. An administrator's job comes with many legal obligations. Under
certain circumstances, an administrator can even be held personally liable for
unpaid estate taxes. Let's review the major duties involved, which we've set
out below.
In General. The administrator's job is to (1)
administer the estate--i.e., collect and manage assets, file tax returns and
pay taxes and debts--and (2) distribute any assets or make any distributions of
bequests, whether personal or charitable in nature, as the deceased directed
(under the provisions of the Will). Let's take a look at some of the specific
steps involved and what these responsibilities can mean. Chronological order of
the various duties may vary.
administer the estate--i.e., collect and manage assets, file tax returns and
pay taxes and debts--and (2) distribute any assets or make any distributions of
bequests, whether personal or charitable in nature, as the deceased directed
(under the provisions of the Will). Let's take a look at some of the specific
steps involved and what these responsibilities can mean. Chronological order of
the various duties may vary.
Probate. The administrator must
"probate" the Will. Probate is a process by which a Will is
admitted. This means that the Will is
given legal effect by the court. The
court's decision that the Will was validly executed under state law gives the
administrator the power to perform his or her duties under the provisions of
the Will.
"probate" the Will. Probate is a process by which a Will is
admitted. This means that the Will is
given legal effect by the court. The
court's decision that the Will was validly executed under state law gives the
administrator the power to perform his or her duties under the provisions of
the Will.
An
employer identification number ("EIN") should be obtained for the
estate; this number must be included on all returns and other tax documents
having to do with the estate. The
administrator should also file a written notice with the IRS that he/she is
serving as the fiduciary of the estate.
This gives the administrator the authority to deal with the IRS on the
estate's behalf.
employer identification number ("EIN") should be obtained for the
estate; this number must be included on all returns and other tax documents
having to do with the estate. The
administrator should also file a written notice with the IRS that he/she is
serving as the fiduciary of the estate.
This gives the administrator the authority to deal with the IRS on the
estate's behalf.
Pay the Debts. The claims of the
estate's creditors must be paid.
Sometimes a claim must be litigated to determine if it is valid. Any estate administration expenses, such as
attorneys', accountants' and appraisers' fees, must also be paid.
estate's creditors must be paid.
Sometimes a claim must be litigated to determine if it is valid. Any estate administration expenses, such as
attorneys', accountants' and appraisers' fees, must also be paid.
Manage the Estate. The administrator
takes legal title to the assets in the probate estate. The probate court will
sometimes require a public accounting of the estate's assets. The assets of the
estate must be found and may have to be collected. As part of the asset
management function, the administrator may have to liquidate or run a business
or manage a securities portfolio. To sell marketable securities or real estate,
the administrator will have to obtain stock power, tax waivers, file
affidavits, and so on.
takes legal title to the assets in the probate estate. The probate court will
sometimes require a public accounting of the estate's assets. The assets of the
estate must be found and may have to be collected. As part of the asset
management function, the administrator may have to liquidate or run a business
or manage a securities portfolio. To sell marketable securities or real estate,
the administrator will have to obtain stock power, tax waivers, file
affidavits, and so on.
Take Care of Tax Matters. The
administrator is legally responsible for filing necessary income and estate-tax
returns (federal and state) and for paying all death taxes (i.e., estate and
inheritance). The administrator can, in some cases be held personally liable
for unpaid taxes of the estate. Tax returns that will need to be filed can
include the estate's income tax return (both federal and state), the federal
estate-tax return, the state death tax return (estate and/or inheritance), and
the deceased's final income tax return (federal and state). Taxes usually must
be paid before other debts. In many instances, federal estate-tax returns are
not needed as the size of the estate will be under the amount for which a
federal estate-tax return is required.
administrator is legally responsible for filing necessary income and estate-tax
returns (federal and state) and for paying all death taxes (i.e., estate and
inheritance). The administrator can, in some cases be held personally liable
for unpaid taxes of the estate. Tax returns that will need to be filed can
include the estate's income tax return (both federal and state), the federal
estate-tax return, the state death tax return (estate and/or inheritance), and
the deceased's final income tax return (federal and state). Taxes usually must
be paid before other debts. In many instances, federal estate-tax returns are
not needed as the size of the estate will be under the amount for which a
federal estate-tax return is required.
Often
it is necessary to hire an appraiser to value certain assets of the estate,
such as a business, pension, or real estate, since estate taxes are based on
the "fair market" value of the assets. After the filing of the returns and payment
of taxes, the Internal Revenue Service will generally send some type of estate
closing letter accepting the return.
Occasionally, the return will be audited.
it is necessary to hire an appraiser to value certain assets of the estate,
such as a business, pension, or real estate, since estate taxes are based on
the "fair market" value of the assets. After the filing of the returns and payment
of taxes, the Internal Revenue Service will generally send some type of estate
closing letter accepting the return.
Occasionally, the return will be audited.
Distribute the Assets. After all debts and expenses have been paid,
the distribute the assets with extra attention and meticulous bookkeeping by
the administrator. Frequently,
beneficiaries can receive partial distributions of their inheritance without
having to wait for the closing of the estate.
the distribute the assets with extra attention and meticulous bookkeeping by
the administrator. Frequently,
beneficiaries can receive partial distributions of their inheritance without
having to wait for the closing of the estate.
Under
increasingly complex laws and rulings, particularly with respect to taxes, in
larger estates an administrator can be in charge for two or three years before
the estate administration is completed. If the job is to be done without
unnecessary cost and without causing undue hardship and delay for the
beneficiaries of the estate, the administrator should have an understanding of
the many problems involved and an organization created for settling estates. The administrator should retain an attorney
experienced in estate administration.
increasingly complex laws and rulings, particularly with respect to taxes, in
larger estates an administrator can be in charge for two or three years before
the estate administration is completed. If the job is to be done without
unnecessary cost and without causing undue hardship and delay for the
beneficiaries of the estate, the administrator should have an understanding of
the many problems involved and an organization created for settling estates. The administrator should retain an attorney
experienced in estate administration.
Kenneth A. Vercammen is a Middlesex County, NJ trial
attorney who has published 125 articles in national and New Jersey publications
on Probate and litigation topics. He often lectures to trial lawyers of the
American Bar Association, New Jersey State Bar Association and Middlesex County
Bar Association. He is Chair of the
American Bar Association Estate Planning & Probate Committee. He is also
Editor of the ABA Elder Law Committee Newsletter
attorney who has published 125 articles in national and New Jersey publications
on Probate and litigation topics. He often lectures to trial lawyers of the
American Bar Association, New Jersey State Bar Association and Middlesex County
Bar Association. He is Chair of the
American Bar Association Estate Planning & Probate Committee. He is also
Editor of the ABA Elder Law Committee Newsletter
He is a highly regarded lecturer on litigation
issues for the American Bar Association, ICLE, New Jersey State Bar Association
and Middlesex County Bar Association. His articles have been published by New
Jersey Law Journal, ABA Law Practice
Management Magazine, and New Jersey Lawyer.
He is the Editor in Chief of the New Jersey Municipal Court Law Review.
Mr. Vercammen is a recipient of the NJSBA- YLD Service to the Bar Award.
issues for the American Bar Association, ICLE, New Jersey State Bar Association
and Middlesex County Bar Association. His articles have been published by New
Jersey Law Journal, ABA Law Practice
Management Magazine, and New Jersey Lawyer.
He is the Editor in Chief of the New Jersey Municipal Court Law Review.
Mr. Vercammen is a recipient of the NJSBA- YLD Service to the Bar Award.
In his
private practice, he has devoted a substantial portion of his professional time
to the preparation and trial of litigated matters. He has appeared in Courts throughout New
Jersey several times each week on many personal injury matters, Municipal Court
trials, and contested Probate hearings.
private practice, he has devoted a substantial portion of his professional time
to the preparation and trial of litigated matters. He has appeared in Courts throughout New
Jersey several times each week on many personal injury matters, Municipal Court
trials, and contested Probate hearings.
KENNETH VERCAMMEN
Attorney at Law
Legal Resume
2053 Woodbridge Ave.
Edison, NJ 08817
732-572-0500
www.centraljerseyelderlaw.com
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