When a loved one passes away, the emotional burden can often be overwhelming. Unfortunately, in the midst of that grief, there are numerous legal processes and obligations that must be handled to ensure that the decedent’s estate is managed in accordance with their wishes and the law. Often, survivors need guidance on transferring assets, dealing with creditors, and help navigating tax obligations.
Transferring Assets
From a legal perspective, assets are divided into two categories, probate assets, and non-probate assets.
Non-probate assets are those assets that can be transferred without any court or government involvement. Financial accounts that have a named beneficiary, jointly owned assets with rights of survivorship, and assets held in a Trust do not need to go through probate. There is still a process involved, and some people may need assistance, particularly with regards to real estate and Trusts.
All other assets need to go through probate, including financial accounts without a named beneficiary, life insurance payable to the estate, and real estate that does not have rights of survivorship. To transfer those assets, someone needs to petition the surrogate’s court to be appointed Executor (of a Will) or Administrator (if there is no Will). Thereafter, the Executor/Administrator may need guidance on providing the court-mandated notices, marshalling and distributing assets, or more.
Creditors
When a loved one passes away, their heirs are not responsible for their debts – but that should be repaid from the estate. While all debts need to be addressed, it’s especially important for government debt such as unpaid taxes or Medicaid estate recovery.
We can assist in helping identify and validate debts, determining which debts need to be repaid and ensuring the estate’s finances are properly managed.
Tax Obligations
As Benjamin Franklin said, in this world nothing is certain except death and taxes. When someone passes away, their income tax obligations do not go away, any back taxes need to be paid, and a final tax return needs to be filed. Additionally, the estate may need to file an income tax return.
There’s also the New Jersey inheritance tax, which may or may not apply, and for larger estates, there’s the federal estate tax. We can help you navigate the tax reporting requirements, and may be able to advise on post-mortem planning to minimize any tax obligations.
Other Services
Sometimes loved ones may need additional advice, such as dispute resolution to avoid lengthy court battles, or advice on how to manage digital accounts.
The death of a loved one often comes with complex legal and financial tasks that need to be handled with care and attention to detail. If you are facing the task of settling an estate, we can help you ensure that the decedent’s wishes are respected and that their estate is administered efficiently. While we cannot ease your emotional suffering, we can help guide you through the legal process and ensure that the estate is properly managed and distributed.