Question regarding the sell of house once inherited and other questions

[Silverspec]

New Jersey. Has will. Once dad passes can the executor of the will sell the house(once agreed with siblings) and put the proceeds into the estate account and distibute accordingly? Does the will have to go through probate if all agree with the will and is strait forward(all get equal %)? I understand the distribution of his mutual, stocks etc. which he names beneficiarys so they can pass the probate process. I just dont understand how the sell of the house works? The deed is in his name and no POD or Transfer on death etc in NJ. Total estate 1 million(house value $300,000.00) no liens no mortgage, nothing.

 

[Zigner]

New Jersey. Has will. Once dad passes can the executor of the will sell the house(once agreed with siblings) and put the proceeds into the estate account and distibute accordingly? Does the will have to go through probate if all agree with the will and is strait forward(all get equal %)? I understand the distribution of his mutual, stocks etc. which he names beneficiarys so they can pass the probate process. I just dont understand how the sell of the house works? The deed is in his name and no POD or Transfer on death etc in NJ. Total estate 1 million(house value $300,000.00) no liens no mortgage, nothing.

Yes, it has to go through probate so that the administrator of the estate has the legal authority needed.

 

[LdiJ]

New Jersey. Has will. Once dad passes can the executor of the will sell the house(once agreed with siblings) and put the proceeds into the estate account and distibute accordingly? Does the will have to go through probate if all agree with the will and is strait forward(all get equal %)? I understand the distribution of his mutual, stocks etc. which he names beneficiarys so they can pass the probate process. I just dont understand how the sell of the house works? The deed is in his name and no POD or Transfer on death etc in NJ. Total estate 1 million(house value $300,000.00) no liens no mortgage, nothing.

Yes, the estate will have to be probated and an executor formally appointed by the court (normally the person named in the will). The executor would then get an EIN number for the estate and open an estate bank account. The house could then be probated (and any other assets that did not pass outside of the will) and the money deposited in the estate account.

Before any money can be distributed the expenses and debts of the estate must be paid, including filing a final tax return for your father and and estate tax return, and any taxes paid. What remains after the expenses and creditors have been paid, can be distributed.

 

[Silverspec]

ok thank you very much, so at this point in time, no matter what, the house has to go through probate is my understanding.
Is selling the house during probate a special process, forms etc. Or once the executor is designate by the court they can act on behalf of the estate and sell it?
it seems the only large asset is the house we have to deal with(maybe checking account) all his mutual funds, stocks, annuities etc. all have beneficiaries listed, should these assets with beneficiaries also be listed and presented to the court? I think in NJ you do not have to present tax returns and all beneficiarys can sign a waiver if all in agreement and monies can be distributed, but i will double check this.

Are the surrogate court people helpful?

What exactly does the court do upon completion of the will at the end when everything is done? do they give you a piece of paper showing the estate has been liquidated and distributed according to the will and all is done?

 

[Zigner]

Who does the will nominate as the administrator?

 

[zddoodah]

New Jersey. Has will. Once dad passes can the executor of the will sell the house(once agreed with siblings) and put the proceeds into the estate account and distibute accordingly?

For starters, you're going to need to tell us what the will says. Does it say anything specific about the house? Does it just say, "my estate should be split evenly between my children" (or something like that)? Also, the executor is the executor of the estate, not "executor of the will," and the person nominated in the will to serve as executor has no authority to do anything until and unless he is appointed by the surrogate's court to act as executor.

Does the will have to go through probate if all agree with the will and is strait forward(all get equal %)?

There is no "agreeing" involved. Whether an estate needs to be probated is determined by its size and composition. If the estate owns real property that is to be sold, then it almost certainly will need to be probated.

I understand the distribution of his mutual, stocks etc. which he names beneficiarys so they can pass the probate process. I just dont understand how the sell of the house works? The deed is in his name and no POD or Transfer on death etc in NJ. Total estate 1 million(house value $300,000.00) no liens no mortgage, nothing.

For starters, stuff that has designated pay-on-death beneficiaries does not count toward the estate value for purposes of determining whether probate is necessary. Once the surrogate's court appoints an executor, the executor will have the authority to sell the house.

The person nominated in your father's will to serve as executor should retain the services of a local probate attorney (assuming he/she actually wants to be executor). Probating an estate of this size that includes real property without an attorney would, IMO, be exceptionally foolish.

so at this point in time, no matter what, the house has to go through probate is my understanding.

The estate has to be probated, and the house is part of the estate.

Is selling the house during probate a special process, forms etc.

I don't understand what you mean by "special process" or what the reference to "forms" means.

Or once the executor is designate by the court they can act on behalf of the estate and sell it?

Unless the court limits the executor's authority, yes.

Are the surrogate court people helpful?

I'm sure, like any other group of people, some of them are and some are not. Understand, however, that "the surrogate court people" are not your representatives, and those of "the surrogate court people" who are attorneys are not your attorneys. I'll say again that probating an estate is not a good DIY project.

What exactly does the court do upon completion of the will at the end when everything is done? do they give you a piece of paper showing the estate has been liquidated and distributed according to the will and all is done?

Typically, the last steps in the probate process will be for the executor to submit to the court a final accounting and proposed distribution. The court will review it to ensure that everything is in order and, if it is, will enter an order approving the accounting and directing the executor to make the proposed distributions. Then the executor will make the distributions and file receipts with the court. Once that happens, the estate will be closed, the executor will be discharged and, if the executor was required to obtain a bond, the bond will be exonerated.

 

[t74]

Please involve an attorney since real estate is involved. Improper transfer of the property can create problems for the new owners long after the date of the transfer. With an estate that size, it can easily afford legal representation.

(Ask me how I know; we were the victims of an improper transfer and had difficulty refinancing the house due to a flaw on the title created nearly 30 years earlier. We were able to get the original financing so not all problems are readily identified.)

 

[LdiJ]

ok thank you very much, so at this point in time, no matter what, the house has to go through probate is my understanding.
Is selling the house during probate a special process, forms etc. Or once the executor is designate by the court they can act on behalf of the estate and sell it?
it seems the only large asset is the house we have to deal with(maybe checking account) all his mutual funds, stocks, annuities etc. all have beneficiaries listed, should these assets with beneficiaries also be listed and presented to the court? I think in NJ you do not have to present tax returns and all beneficiarys can sign a waiver if all in agreement and monies can be distributed, but i will double check this.

I am not sure what you mean by "present tax returns" however if you are thinking that the executor is not responsible for filing a final tax return for the deceased and for filing an estate tax return and paying any taxes due out of the estate then you are mistaken. That is a federal issue (as well as a state one) so that applies to all 50 states.

 

[Silverspec]

New Jersey
Thank you all again.
Regarding getting an attorney. From my research it seems in New Jersey the probate process seems straight forward. I have reviewed the process I would have to take(with this forums help) and I can not determine what value a probate attorney would add to the process. This does not mean I will not use an attorney I am just trying to determine if I should or not. I see the process as follows:

-Go to the surrogate court and have the executor of the estate appointed
-Open a checking account for the estate with EIN number etc.
-All stocks, mutual funds, bonds are in one mutual fund family (Vanagaurd funds) and the beneficiaries are designated 25% each between 4 kids so this would be a easy transfer without probate. The 2 annuities also have beneficiary's listed on them so this would also be an easy transfers to the heirs without probate(25% each 4 kids).
-Checking accounts and a few CDs($100,00.00) would be sold and put into the estate account.
-From advice above it seems the court appointed executor of the estate can sell the house and put the proceeds into the estate account. There will not be a transfer of property to the heirs, house would be sold.
-Submit final accounting and proposed distribution to the court, this I will be asking my accountant for help.
-Distribute the founds accordingly upon approval

Is there anything I am missing? I am asking regarding the process only. I understand family dynamics can get involved in the process as well. I just want to understand the process of probate in New Jersey and determine what value a probate attorney would add regarding the probate process.

Thank you all again for your help. Knowledge is great.

 

[LdiJ]

You do seem to understand how the process works but again, you have left out a couple of steps.
Again, you have to file the final tax returns for your father and pay the taxes from the estate account.
You have to file estate tax returns and pay those taxes (if any) from the estate.
You have to pay off all of your father's creditors.
THEN you submit final accounting and proposed distribution to the courts.

 

[Zigner]

For starters, you're going to need to tell us what the will says. Does it say anything specific about the house? Does it just say, "my estate should be split evenly between my children" (or something like that)? Also, the executor is the executor of the estate, not "executor of the will," and the person nominated in the will to serve as executor has no authority to do anything until and unless he is appointed by the surrogate's court to act as executor.



There is no "agreeing" involved. Whether an estate needs to be probated is determined by its size and composition. If the estate owns real property that is to be sold, then it almost certainly will need to be probated.



For starters, stuff that has designated pay-on-death beneficiaries does not count toward the estate value for purposes of determining whether probate is necessary. Once the surrogate's court appoints an executor, the executor will have the authority to sell the house.

The person nominated in your father's will to serve as executor should retain the services of a local probate attorney (assuming he/she actually wants to be executor). Probating an estate of this size that includes real property without an attorney would, IMO, be exceptionally foolish.



The estate has to be probated, and the house is part of the estate.



I don't understand what you mean by "special process" or what the reference to "forms" means.



Unless the court limits the executor's authority, yes.



I'm sure, like any other group of people, some of them are and some are not. Understand, however, that "the surrogate court people" are not your representatives, and those of "the surrogate court people" who are attorneys are not your attorneys. I'll say again that probating an estate is not a good DIY project.



Typically, the last steps in the probate process will be for the executor to submit to the court a final accounting and proposed distribution. The court will review it to ensure that everything is in order and, if it is, will enter an order approving the accounting and directing the executor to make the proposed distributions. Then the executor will make the distributions and file receipts with the court. Once that happens, the estate will be closed, the executor will be discharged and, if the executor was required to obtain a bond, the bond will be exonerated.

You speak of an "executor" several times, but the New Jersey Revised Statutes related to the matter don't define an "executor" at all (https://law.justia.com/codes/new-jersey/2019/title-3b/). Because of this, I really can't make heads or tails of what you are trying to say. Perhaps you meant "administrator", but I really don't want to guess at what you might have meant...

 

[Silverspec]

You speak of an "executor" several times, but the New Jersey Revised Statutes related to the matter don't define an "executor" at all (https://law.justia.com/codes/new-jersey/2019/title-3b/). Because of this, I really can't make heads or tails of what you are trying to say. Perhaps you meant "administrator", but I really don't want to guess at what you might have meant...

Yes also referred to as administrator. All of the articles regarding probate in New Jersey refer to the "executor or admistrator" of the estate.

 

[Zigner]

Yes also referred to as administrator. All of the articles regarding probate in New Jersey refer to the "executor or admistrator" of the estate.

Silverspec -
My post was actually quoting and responding to another advisor for reasons that should be obvious to him. I completely understood you. The law doesn't make reference to an "executor", but the word is commonplace

 

[Silverspec]

You do seem to understand how the process works but again, you have left out a couple of steps.
Again, you have to file the final tax returns for your father and pay the taxes from the estate account.
You have to file estate tax returns and pay those taxes (if any) from the estate.
You have to pay off all of your father's creditors.
THEN you submit final accounting and proposed distribution to the courts.

Thank you Ldij, It seems the steps you mentioned can be done by my accountant. I continue to struggle if an attorney is necessary and if there is any value he can add that I can not do on my own per my above post #9.

I really like to do things such as this on my own. I feel this is how you really learn, by experience.

 

[LdiJ]

Thank you Ldij, It seems the steps you mentioned can be done by my accountant. I continue to struggle if an attorney is necessary and if there is any value he can add that I can not do on my own per my above post #9.

I really like to do things such as this on my own. I feel this is how you really learn, by experience.

If everything goes smoothly you might be able to do it without an attorney. The problem is that things rarely go smoothly, even if the expectations are that they will.