09 Sep What has to be done when someone dies without a will?

Q. My nephew, 61, died a couple of weeks ago. He had no will, was unmarried and had no children. One of his brothers is trying to help take care of loose ends like emptying the contents of his apartment and donating his car. Are there any responsibilities we may not he may not be aware of, like notifying government agencies?
— Family member

A. We’re sorry to hear about your nephew.

There’s a good chance that the funeral home notified the Social Security Administration about his death.

We cannot give specific legal advice without knowing more about his family, assets and liabilities, but there are general things to be aware of when someone dies without a will or any heirs.

New Jersey law regarding intestacy allows the nearest relative the right to administer the estate and also the right to receive the assets, said Catherine Romania, an estate planning attorney with Witman Stadtmauer in Florham Park.

“In this case it would be your nephew’s parents,” she said. “If both are deceased or choose to renounce or disclaim their rights and interests, it would flow to their children, including the decedent’s siblings.”

If your nephew is going to act on behalf of his brother’s estate, he should be formally appointed by the Surrogate, she said. Unfortunately, he will likely be required to post a bond to ensure the assets are properly used to pay the creditors and distributed to the beneficiaries, she said. If the estate is less than $20,000, the estate may be administered as a small estate without some of the formalities of a formal administration, including the need for a bond, she said.

In either case, there is a priority as to how payment and distribution from the estate should be made to avoid personal liability.

First, funeral and administration expenses (including commissions owed to the administrator and attorney fees for administering the estate) are paid, followed by debts for services to the decedent by the federal government (such as Medicaid liens) as well as taxes (both state and federal), Romania said.

These claims are followed by medical and hospital claims for the last illness and then all other creditor claims, Romania said.

“Once all creditors are paid, the beneficiaries may claim the remainder. If the liabilities are greater than the assets, paying creditors in the correct order becomes important,” she said. “Creditors that are not paid may file a lien against the estate should funds ever become available.”

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This story was originally published in September 2024.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.