Get Support From A New Jersey Probate Attorney

Probate is the court process that manages a person’s property after death. It ensures that the executor or administrator pays all debts, taxes and other obligations before the heirs receive the remaining assets. In New Jersey, the Surrogate’s Court confirms the will and appoints an executor or, if there is no will, an administrator. This person identifies the estate’s property, pays valid claims and distributes the remaining assets under state law.

If you serve as executor or administrator, you may feel unsure about where to begin. Probate involves deadlines, forms and careful recordkeeping. Staying organized helps you complete these steps properly and protect the estate’s value. I am Ronald J. Cappuccio, a tax attorney based in Cherry Hill, New Jersey. I help clients across the United States and abroad with tax audits, business tax matters and IRS controversies. My decades of experience in tax law allow Ronald J. Cappuccio J.D., LL.M. (Tax), to guide executors and administrators through probate-related tax matters with accuracy and efficiency.

The Probate Process In New Jersey

The Surrogate’s Court reviews the will and issues Letters Testamentary to the executor or Letters of Administration if no will exists. You must collect assets, notify creditors, pay valid debts and file the necessary tax forms. Once the estate’s obligations are complete, you can distribute the remaining property and close the estate. The timeline depends on the size and complexity of the estate, but accurate records can make the process smoother.

Estate Administration – Tax Responsibilities

Executors and administrators must handle several tax filings for the estate. These can include the decedent’s final state and federal income tax returns, fiduciary returns for income earned during administration, and, when required, estate or inheritance tax filings. New Jersey no longer imposes a state estate tax on decedents who died in 2018 or later, but it continues to levy an inheritance tax on certain heirs depending on their relationship to the decedent. The state may require a waiver or consent before transferring some assets, so you must verify whether the Division of Taxation’s approval applies to the estate you manage.

Before filing returns or transferring assets, stay organized and keep detailed financial records. To manage estate tax duties effectively, executors should:

• Collect prior tax filings, bank statements and property valuations for complete financial records
• Obtain a taxpayer identification number for the estate and use a separate estate account for all transactions
• Keep receipts, check copies and correspondence with taxing authorities for reference and future review
• Pay valid taxes from estate funds and understand that personal liability may apply for unpaid amounts within the limits of the estate’s assets

Because tax rules and filing deadlines change, confirm current requirements with an accountant or estate attorney before you file. I help clients resolve complex tax matters tied to probate so executors can meet their obligations with confidence.

Your Questions About New Jersey Probate Answered

Probate can raise questions about forms, deadlines and executor duties, especially when you manage an estate for the first time. To help you understand what may come next, here are answers to common probate questions in New Jersey:

Question: In 2003, I received assets from my mother’s estate. Two of the assets, rental buildings, went into an S corp with me and my two brothers as shareholders. At the time of distribution, I did not receive a refunding bond and release. Recently, I received a letter from the executor’s lawyer asking me to sign a refunding bond and release. There have been some issues with the handling of the estate. Do I have to sign the refunding bond and release? What happens if I do not sign the refunding bond and release? Can I just sign the refunding bond and not sign the release?

Answer: You should hire an estate attorney to review the estate and the accounting. The refunding bond and release has two purposes. The refunding portion obligates you to pay back what you received from the estate if demanded by the executor or creditor of the estate. The release eliminates your rights to make claims against the executor. If you and your attorney decide that it is best for you not to sign the refunding bond and release, then a formal accounting will be filed in court and your attorney can file your objections.

Question: My brother has power of attorney and is paying my mother’s bills out of her bank account. She is now in the hospital and trying to get on Medicare. I want to know because of the POA is my brother responsible for her bill in the event of her death

Answer: A power of attorney is only valid during the grantor’s life. Once your mother dies, the power of attorney is automatically terminated. The person designated as executor in your mother’s will would have the responsibility for administering the estate.

Question: How long does a creditor have to file a claim with the executor of an estate? Before the 2005 amendments, an executor was often well advised to obtain an “Order Limiting Creditors,” sometimes referred to as a “Rule to Bar.” Creditors would have six months from the date of publication of the order to submit their claims or be “forever barred…”

Answer: As amended, 3B:22-4 no longer requires an order or publication. Creditors have nine months from the date of the decedent’s death to submit their claims to the P.R. Thereafter, the P.R. is not liable to any creditor for disbursing assets to beneficiaries.

Notice that previously, there was, in effect, a statute of limitation that actually barred claims made after six months from publication. Now the statute simply exonerates the P.R. if there aren’t sufficient assets left to pay a creditor who submits a bill after nine months. This means that late creditors can still get paid if the P.R. doesn’t distribute fast enough and there are enough assets left to cover the debt or, presumably, pursue beneficiaries who have received distributions pro-rata.

Question: Is it true that it takes four to six weeks after filing these in Trenton to get them returned by the state?

Answer: New Jersey is not particularly fast in processing returns in general. Expect one to two months for all return processing.

If you still have questions about probate or your duties as an executor, reach out to Ronald J. Cappuccio J.D., LL.M. (Tax), for clear guidance on your next steps.

Connect With A New Jersey Probate Attorney

Probate often involves both legal and tax decisions that can affect how you manage estate assets and filings. Ronald J. Cappuccio J.D., LL.M. (Tax), provides practical guidance to executors and administrators handling probate matters, including tax responsibilities, creditor claims, and estate distributions.

To learn more, contact Ronald J. Cappuccio J.D., LL.M. (Tax), at 856-665-2121 or forward the firm an email.