Being named the executor of someone’s estate is both an honor and a significant responsibility. For many people, it is also unfamiliar territory. If you’ve never administered an estate before, it’s natural to wonder what happens next.
While every estate is different, the executor’s job is generally the same: gather the deceased person’s assets, pay valid debts and taxes, and distribute the remaining property according to the will.
The information below applies to New Jersey estates. Probate and estate administration laws vary by state, so if the estate is located elsewhere, the process may be different.
Many executors are serving in this role for the first time. They are often balancing grief while trying to handle unfamiliar legal, financial, and administrative responsibilities. The probate process can feel overwhelming at first, but understanding the steps involved can make the process much more manageable.
Here’s a practical overview of what executors can expect during the probate process.
If the deceased left a valid will, that document should name an executor. If there is no will, the estate will require an administrator instead.
Although the responsibilities are similar, there is one important distinction.
An executor is chosen by the person who created the will. An administrator is appointed by the court when someone dies without a will, and family members must agree on who will serve. Administrators also generally must obtain a bond before serving.
If you have been named executor, your authority does not begin immediately. First, the County Surrogate must admit the will to probate before you can legally act on behalf of the estate.
Before beginning probate, collect the documents you’ll need to administer the estate.
These typically include:
Starting with organized records will make every step of the administration process easier and help you avoid unnecessary delays.
In New Jersey, probate generally begins with the County Surrogate’s Office.
Depending on the county, you may complete probate in person or by mail. Once the Surrogate admits the will to probate, the office issues what is commonly known as a Short Certificate. This document serves as proof of your authority to act as executor and allows banks, investment companies, and other institutions to work with you.
As executor, you should also:
Using a dedicated estate account helps keep estate finances organized, creates a clear record of income and expenses, and simplifies the accounting process later.
One of your primary responsibilities is identifying and collecting the estate’s assets.
Some assets pass through probate, while others transfer automatically to named beneficiaries.
Probate assets often include:
Non-probate assets commonly include:
For non-probate assets, financial institutions and insurance companies generally distribute the assets directly to the named beneficiaries after receiving notice of the death. Those assets typically do not become part of the probate estate.
Understanding this distinction helps executors focus their efforts where they are needed and avoid unnecessary work.
Before distributing assets to beneficiaries, the estate must satisfy its legal obligations.
Common estate debts include:
New Jersey no longer imposes an estate tax, but some estates may owe New Jersey inheritance tax, depending on who inherits the property. Inheritance tax generally applies to certain beneficiaries outside the immediate family and is typically due within eight months of death.
Large estates also may have federal estate tax considerations, although relatively few estates exceed the federal exemption amount.
Tax issues vary from one estate to another, so executors should consult experienced legal and tax professionals whenever questions arise.
Once you have paid debts, expenses, and taxes, you can distribute the remaining probate assets.
The will often contains several different types of gifts.
Some beneficiaries receive specific bequests, such as a particular piece of jewelry, a vehicle, or a designated sum of money.
After distributing those gifts, you divide the remaining assets, commonly referred to as the residue of the estate, according to the terms of the will.
Although beneficiaries may be eager to receive their inheritances, avoid distributing assets too early. Waiting until you have resolved all known obligations helps protect both the estate and you as executor from future claims.
Before closing the estate, carefully document every step you have taken.
Depending on the estate, this may include:
Good recordkeeping demonstrates that you properly administered the estate and provides valuable legal protection if questions arise later. Staying organized from the beginning makes this final stage much easier.
Yes. New Jersey law allows executors to receive a commission for the work they perform.
In many estates, the statutory commission equals:
Executor commissions generally qualify as taxable income and should be reported on the executor’s personal income tax return.
Serving as an executor involves much more than distributing property. It requires organization, attention to detail, and an understanding of New Jersey probate procedures.
While every estate presents its own challenges, successful estate administration often comes down to staying organized, meeting important deadlines, maintaining accurate records, and asking questions when issues arise.
An experienced estate administration attorney can help guide executors through each step of the process, ensure required notices are provided, assist with tax and probate questions, and help avoid mistakes that could delay the administration of the estate or expose the executor to unnecessary personal liability.
If you have recently been named executor of a New Jersey estate, working with knowledgeable legal counsel can help you fulfill your responsibilities with confidence while ensuring your loved one’s final wishes are carried out efficiently and correctly.
Melanie M. Levan is a shareholder at Earp Cohn P.C. who focuses her practice on New Jersey estate planning, estate administration, guardianships, and commercial real estate matters. She works closely with individuals and families to create practical estate plans that protect their wishes, preserve their assets, and provide peace of mind. She has also been appointed by the court to serve as an estate administrator, guardian, and attorney for incapacitated individuals.
