Intestacy
Intestacy (without a last will and testament)
Intestacy occurs when someone dies without a valid Last Will and Testament. In these cases, New Jersey law determines who inherits the estate and who may be appointed to administer it.
Instead of the decedent choosing beneficiaries, New Jersey’s intestacy statutes determine:
- Who inherits the estate
- Who has priority to serve as administrator
- How property is divided among family members
The Surrogate’s Court appoints an administrator to manage the estate.
New Jersey law distributes assets based on the decedent’s closest surviving relatives. Refer to N.J.S.A. 3B:5-3 and N.J.S.A. 3B:5-4 for detailed information.
New Jersey law – N.J.S.A. 3B:10-2 sets a priority order for who may serve as administrator of an intestate estate. Typically, the following individuals may apply, in order:
1. Surviving spouse or civil union partner
2. Adult children
3. Parents
4. Siblings
5. Other next of kin
If multiple people have equal priority (for example, several adult children), they must all consent or renounce their right to serve; otherwise, the Surrogate is unable to appoint an Administrator.
Administrators are required by law to obtain a surety bond to protect the estate. The bond amount is based on the value of the estate.
- Gather information about the decedent’s assets and next of kin.
- Submit required documents to the Surrogate’s Court.
- Obtain renunciations from relatives with equal or greater priority to serve as administrator.
- Qualify as administrator and obtain required surety bond.
- Receive Letters of Administration from the Surrogate.
- Collect and safeguard assets.
- Pay debts, taxes, and expenses –keep detailed records.
- File accounting if required.
- Distribute remaining assets according to New Jersey intestacy law.
Intestacy laws apply only to probate assets. The following assets may pass directly to the named beneficiary or surviving owner (unless the beneficiary designation is invalid or no beneficiary survives).
- Joint bank accounts with right of survivorship
- Jointly owned real estate
- Life insurance policies
- Retirement accounts (IRAs, 401(k))
- Transfer on death or payable on death accounts
Intestacy laws may not reflect your wishes. A Last Will and Testament allows a person to:
- Choose beneficiaries
- Appoint an executor
- Appoint guardians for minor children
- Control how and when assets are distributed
- Reduce costs and delays
- Avoid surety bond requirements in many cases