HOW IS MY ESTATE DISTRIBUTED WITHOUT A WILL?

If You Have No Will:
Compiled By Kenneth Vercammen, Esq.
If you leave no Will or your Will is declared invalid because it was improperly prepared or is not admissible to probate:
1. The procedure to distribute assets becomes more complicated and more expensive. It will require all of the children to select someone to be the Administrator, then all the children to sign a Renunciation Affidavit in front of a notary. If all the children do not sign the Renunciation Affidavit if front of notaries, then a Complaint and Order with have to be filed in the Superior Court. Cost over $3,000. The preparation of a Will for under $400 eliminates these costs.
2. Additional expenses will be incurred and extra work will be required to qualify an administrator-Surety Bond, additional costs often over $1,000 and extra legal fees
3. State law determines who gets assets, not you. People who dislike you or don’t care about you can get your assets
4. If you have no spouse or close relatives the State may take your property. Most people who rather have charities or friends get their money.
5. It often causes fights and stress within your family and sometimes lawsuits
6. A Judge determines who gets custody of children or grand children. A greedy brother or crazy mother in law could ask the court for custody.
7. You lose the opportunity to reduce State inheritance taxes and Federal estate taxes without improper planning
The estate of a person who dies without a will is called an "intestate" estate. The Administrator's responsibilities include notifying the deceased's next of kin of his/her death, assembling the estate's assets and disbursing those assets according to law. The applicant need not be an attorney. In fact, most applicants complete the entire Surrogate's Court process without the need for an attorney. However, if they feel more comfortable bringing an attorney to the Surrogate's Court, they may certainly do so.
To apply to be the Administrator of an intestate estate, a person must bring the following to the County Surrogate's Court: (1) The original death certificate with raised seal; (2) An estimate of the gross value (but not an item-by-item description) of the estate covering all real estate and non-real estate (personal) assets; (3) The complete names and addresses of the deceased's next of kin; (4) A blank New Jersey check or cash for fees-the average fees, excluding bonding costs, are $150-$250);
(5) A formal, written Renunciation of the right to serve as the estate's Administrator signed (in the presence of a Notary Public) by every person, if any, who has statutory preference over the applicant to serve as the estate's Administrator.
If all the children Will not sign a renunciation, an expensive Complaint and Order to Show Cause will have to be filed. At the Superior Court hearing a beneficiary will have to convince the Judge to appoint them as the Administrator. Legal fees and court costs over $3,000. They will then have to pay for a bond usually costing over $1,000. Then later usually a Formal Accounting has to be filed. All this could be avoided with a proper Will prepared by an Estate Planning Attorney usually costing $300-$600 each.
This is Middlesex County Surrogate’s chart:
If You Die Leaving:
Survivors (Heirs)
New (2004) UPC
Spouse and parent(s), but no children
Spouse: the first 25% (but not less than $50,000 nor more than $200,000) plus three fourths of the balance
Parent(s): All other estate assets
Spouse and children of Decedent, all of whom are also children of spouse (and spouce has no children by any other relationship) Spouse: 100% of estate
Children: nothing
Spouse and children of Decedent, some of whom are not children of spouse
Spouse: the first 25% (but not less than $50,000 nor more than $200,000) plus one half of the balance
Children of the Decedent: all other estate assets
Spouse and children of Decedent, all of whom are also children of spouse (and spouse has children by another relationship)
Spouse: the first 25% (but not less than $50,000 nor more than $200,000) plus one half of the balance
Children of the Decedent: all other estate assets
Spouse and stepchildren (children of spouse who are not Decedent's children)
Spouse: 100% of estate
Stepchildren: nothing
Children of spouse (stepchildren), but no descendants, parents, descendants of parents or descendants of grandparents
Stepchildren: 100% of estate
Source http://www.middlesexcountynj.gov/Gove...