subject: Probate and Probate Avoidance [print this page] What do we mean by probate? Probate is the process by which individuals utilize to transfer their property to their next kin of heirs. Some assets pass outside the probate basing on the character or how the person was titled.
Now, probate estate administration NJ occurs even when there is no will left by the deceased. In cases exactly where there is no will left, the property is then distributed towards the heirs according to decree. Once the proprietor from the estate passes away, an individual is appointed as the representative or otherwise known as executor who will provide essential administration to the estate. This executor will then be responsible for the property including the court, heirs and creditors and he will probably be expected to adhere to strict rules and policies.
What are the responsibilities of the representative?
Publish notice of administration to notify collectors
Appropriate filing and tax payments to the IRS
May distribute the remaining assets to the heirs
Pay the collectors unless otherwise objected
While it is true that the estate administration NJ provides organized approach towards the transfer of any individual's property towards the heirs, it's also true that it holds many disadvantages to it.
It is costly
Requires an attorney because estate administration is complicated
Meticulous and intricate because the executor should usually get court approval for actions, which increases the require for legal representation and further aggravates the estate's financial issues
It takes a long time - from few months to a number of years at most and also the final stages are crucial since the court won't allow distribution of the remaining property unless all collectors and taxes have been paid
Now, what is probate avoidance?
Remember that some assets pass outside of probate and this is simply because the kind of asset or the way the asset was titled is also considered in the matter. Any property that's owned jointly with rights of survivorship will automatically be passed on the surviving joint owner of the property. The drawback about holding a property of anyone other than your spouse would put you at risk from the creditors which are tied on that property.
Properties which are transferred before the death of the person isn't subject to probate administration because the transfers are directly made to the individual making the original proprietor lose all controls of the asset or rights on the property. There are a lot of cases exactly where in living trusts are the most flexible and safest way of avoiding probate administration. Therefore, it is important that estate planning NJ should be performed to ensure that families which are left behind would be taken cared of correctly.
