According to a 2025 news article, New Jersey ranked number two in the nation for residents leaving their home state. Many of the residents who leave New Jersey have parents, grandparents and other family members who stay behind. When a relative passes away with assets and liabilities, it is important to know how to administer their estate properly.
As a threshold issue, no one can legally administer an estate without being appointed as an executor or, if there is no will, as administrator. In order to be appointed as executor or administrator, you will need to file an application with the Surrogate to obtain letters testamentary or letters of administration. If the decedent had a will, then the will has to be filed along with the application.
If the estate is being contested or in some special circumstances, you may need to file a probate action in the New Jersey Superior Court. If there is no will, then if the estate has sufficient value, then you may need to post a surety bond. Once you receive your letters of administration and short certificate, then you can legally administer the estate.
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, and others. You will need to maintain sufficient records of your administration including keeping receipts and invoices for administration expenses. At the end of the administration, you will need to provide an accounting to beneficiaries if they request it. Beneficiaries, creditors, and other interested parties can sue you for an accounting
The initial phase of administration is marshalling the decedent’s assets and determining the decedent’s liabilities. Estates can have a variety of assets including, but not limited to, real property, bank accounts, securities, personal property, and cash-on-hand. Some of the assets may be easy to locate, such as real property. Other assets can be difficult to ascertain or may even be unknown during the administration. Ultimately, as administrator, you are responsible for locating and marshalling the assets of the decedent.
After the decedent’s assets are liquidated, then you will need to pay off the decedent’s debts and liabilities. Such debts can include liens, mortgages, taxes, and other debts that the decedent owes to creditors. There may be debts and liabilities that are unknown to the estate during administration, and thus, it is not uncommon to withhold and escrow a certain amount of estate funds for 1-3 years even after distributions are made.
After the assets are liquidated and liabilities paid off, the residuary estate may be distributed to the beneficiaries per the will or, in the case of an intestate estate, per the New Jersey Statutes. You should always have each beneficiary execute a release and refunding bond prior to making a distribution.
Occasionally unique issues can arise during seemingly routine estate administrations. For example, if the decedent owned real property that needs to be sold, then you would need to understand the real estate transaction process in New Jersey. If the decedent was a Medicaid recipient, the State of New Jersey may have a lien on the decedent’s property or claim on the estate that needs to be paid off. If the decedent had federal bonds that were lost, stolen or destroyed, you would need to reach out to the United States Treasury. If the decedent left behind real property that was being occupied by family or friends who are refusing to pay rent to the estate, then you would need to evict or eject the occupants pursuant to New Jersey law. These are difficult issues that can arise in estate administrations but must be handled by the administrator.
Even if you are named as the executor in the decedent’s will or, in the case of an intestate estate you are the next-of-kin to the decedent, you do not necessarily need to be appointed as the administrator of the Estate. Zack Whelan is routinely appointed by the New Jersey Superior Court as an administrator for estates where the decedent’s family is located out-of-state or otherwise not available to administer the decedent’s estate. His background in real estate and estate administration is particularly helpful for estates where there is real property that needs to be sold, tenants who need to be evicted, occupants who need to be ejected, or the property is in foreclosure.
If you have a relative who passed away in New Jersey and you cannot administer their estate or would like a fiduciary to administer the estate on your behalf because you live in another state, then call us today for your free initial consultation.
