There may come a time when a friend or loved one passes away. If they had a will, then their will might have named you as executor. Alternatively, they may pass away without a will leaving no named administrator. In either scenario, the decedent will leave behind an estate that will need to be administered by an executor or administrator. As a threshold issue, as an executor or administrator, you are a fiduciary who is held to a high standard. You can be liable for acts or omissions in that role and can be sued by the beneficiaries, creditors, or others. In order to protect yourself from liability, and to fulfill your responsibilities, it is important that you understand the basics of estate administration before administering the estate.
If you are named as an executor in a will or want to be appointed as administrator for an estate, then the first step that you will need to do is obtain short certificates from the Surrogate’s office located in the county where the decedent passed away. In the case of an intestate estate, you may need renunciations from the decedent’s next-of-kin.
Once you obtain short certificates, then you will need to begin marshalling the decedent’s assets. As a prerequisite, you will need to obtain a federal EIN number and open an estate account with a bank. Thereafter, you will have to liquidate the decedent’s assets, including real and personal property, securities, bank accounts, etc., and transfer the proceeds into the estate account. Liquidation of assets can be very difficult if you are not an attorney, especially when dealing with larger institutions that have control or custody over the assets.
After the decedent’s assets are liquidated, then you will need to pay off the decedent’s debts. Such debts can include liens, mortgages, taxes, and other debts that the Decedent owes to creditors. There may be debts that are unknown to the estate during administration. In order to properly protect yourself from liability to unknown creditors, you need to have the beneficiaries each execute a release and refunding bond.
Oftentimes, unique issues can arise during a routine estate administration. For example, if the decedent was a Medicaid recipient, the State of New Jersey likely has a lien on the decedent’s property or estate. You will need to coordinate payment of the lien through the Department of Human Services. Another example is if the decedent left behind real property being occupied by family or friends are refusing to pay rent to the estate. You will need to file an ejectment action in the Superior Court.
Even the most routine estate administrations can get complicated. Furthermore, as a fiduciary, you are held to a very high standard and must protect yourself against liability whether with the beneficiaries, creditors, or others.
You should have an experienced New Jersey probate attorney guiding you through the administration process. Zack Whelan has been practicing estate planning and probate for years. He has been appointed by judges to administer complex estates with a wide-variety of issues and has administered estates to conclusion. He is very knowledgeable when it comes to estate matters and can give you guidance on the best way to administer your friend or loved one’s estate to protect yourself in your role as executor or administrator in New Jersey surrogate proceedings.
Call us today for your free initial consultation.
