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Dying with No Estate Plan… Now What?

No planNo one can be forced to assume the burdens of an estate administration merely because you are an heir.

If your father died suddenly of a heart attack in New Jersey without a will – but had a home with a second
, a vehicle and significant credit card debt – what would you need to do? A recent nj.com’s post asks “Who is responsible if dad dies with no will?”

Needless to say, when someone dies without a will and leaves nothing to guide their heirs, things can get complicated. But the process of being appointed as executor if there’s a will (or as administrator if there’s no will), typically isn’t that difficult or expensive.

Bonds are typically waived for executors, but many times administrators must post a bond. The bond amount is derived from the value of the estate. If you’re appointed as an executor (or as an administrator of your father’s estate), it doesn’t make you personally responsible for any of his unpaid debts or obligations. You can’t be forced to take on the burdens of administration of an estate, merely because you are an heir.

However, once you agree to serve and you’re appointed as an executor (or an administrator) by the court, you can’t just bail. You’d have to have the court’s okay to resign. A successor fiduciary would then need to be appointed.

When there’s real estate involved—in this case the father’s home—and you’re an heir of the estate, when the foreclosure of the mortgage is started, the heirs will likely be named in the proceedings—regardless of whether you’re an executor (or an administrator). But you don’t necessarily have to respond to the pleadings.

If no family member is willing to serve as a fiduciary to administer the father's estate, and with assets in the estate to be administered and debts to be paid, the court most likely would appoint an attorney to serve in that capacity. In New Jersey, the statute says creditors can also apply for the job. The administrator is paid from the sale of the assets.

Assuming that the father in this example wasn’t married at the time of his death, his only children are three siblings and there was no will, each sibling would be entitled to a one-third share of his estate based on the laws of intestacy. They’d also each be entitled to be appointed and to act jointly as administrators of his estate. However, any one or two could renounce in favor of the other(s). This has no effect on that person’s one-third share of the estate.

Reference: nj.com (February 23, 2017) “Who is responsible if dad dies with no will?”

 

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We've been putting together as many resources as possible so that we can continue to help:

  • If you’re a current client with a signing appointment or a prospective client with a consultation and would prefer that meeting take place in your own home, we can accomplish that with a little bit of pre-planning on our part and with the addition of a laptop, smartphone, tablet or other computer in your home to facilitate this virtual meeting. For those of you that need to sign legal documents, that too can be accomplished with the use of a webcam (FaceTime etc.), so that we can witness and electronically notarize all of your important legal documents.
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Thank you, Walt and the Zaremba Team

Coronavirus/Covid-19
Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.