“What happens if a person dies without a Last Will & Testament” is an issue many may need to address. When no Will nor legitimate Will nor Trust exists, estate administration is then in lieu of probate and can be a bit more onerous and complex. A person’s real and personal property to be marshaled upon passing is not distributed according to a person’s verbal and unwritten intentions (if known); rather, it is distributed according to the intestate laws of the State of New Jersey. Hence the reason estate planning is important as it sets forth your afterlife intentions clearly and directly to your loved ones and any and all other beneficiaries. If a person dies with assets but no Will or Trust, then a qualifying administrator of the estate must be issued Letters of Administration by the County Surrogate’s Office, or be appointed by the Court.
If a person owns assets or property jointly with another person or in Trust, then probate and estate administration is not necessary because ownership automatically goes to the surviving party. Certain tax and or other 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, which are know and referred to as the laws of “intestate succession.” How property may be divided if there is no will is set forth in the chart below, where an estate is distributed in New Jersey if you do not have a Will. If you die without a will as a resident of New Jersey, state law provides the manner for distributing your property, and your net value of your estate 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 are automatically owned by the survivor spouse.
- Real estate and property with a beneficiary designation go to the person designated as the beneficiary.
- A surviving wife or husband receives the entirety of the remaining estate if they have common descendants (children) born or legally adopted while the husband and wife are 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 decedent’s 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 descendant’s 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 decedent’s parents. If there are no surviving children or parents then the surviving spouse gets 100% of the decedent’s estate.
- A child or children receive one-half of the estate balance divided equally, by representation.
- If there are Grandchildren, they take their deceased parent’s share of the estate equally
All matters ae somewhat unique and not all estate cases are covered here. Recall that the State of New Jersey takes your property if you have no Will and you do not have a spouse, child or descendants; parent(s); brother(s) or sister(s) and their descendants; grandparent(s); uncle(s), aunt(s) or their children; or their grandchildren. Note that if any person fails to survive a decedent by 120 hours, he or she is deemed to have predeceased the decedent for purposes of intestate succession. New Jersey law determines who inherits the estate of a person dying without a Will, determined according to kinship/bloodline. When there are no known relatives, the estate is in escheat and all property goes to the State of New Jersey. Escheating to New Jersey is not a good thing, and to review how to avoid same, call 856.428.5577 or e-mail me [email protected] and set up an office consultation at your convenience.
