All her assets, houses, dolls and store stuff is worth only $100,000 The estate is insolvent. My mother had a will, and I toke an oath with the state to settle her debt. Am I still responsible for her debt even if I can't pay it? The properti...
When a person dies, his personal assets become his “estate.” Generally speaking, debts are paid out of the estate. The Executor of an estate can hire an attorney to assist him or her in the administration of the estate. The legal fees are an administration expenses payable by the estate, and are payable before the other creditors. To avoid any personal liability, if the estate does not have the assets to pay the creditors, an Executor should follow the New Jersey statutory procedure for insolvent estates. An attorney experienced in these matters should be consulted.See question
She lived in New Jersey. There was no will so no probate was done. She left a POD bank account which paid for her burial and an IRA both where non Probatable.
Many estates do not have an obligation for federal estate taxes or New Jersey estate taxes if the estate is under $675,000 gross value -- that includes the value of all probate and non-probate assets. Whether you need to file an estate tax return depends on whether the value of the POD account and the IRA exceeds $675,000. I am assuming from the question that that is not the case. If assets passed to anyone other than a spouse, child or grandchild (Class A) beneficiary a New Jersey inheritance tax return might be required. Also keep in mind that the administrator of the estate may have to file Federal and State income tax returns for the year of death.See question
I am her trustee but I have brothers and the house is worth around 45k
Yes, when a person dies his or her estate must pay the deceased person's debts, taxes and expenses before distributing assets to the beneficiaries. Under New Jersey law, there is a certain order in which debts should be paid. The executor or administrator of the estate should first pay for reasonable funeral expenses. The costs or fees associated with administering the estate should be paid next, followed by taxes and debts. Medical expenses from the decedent's last illness are paid next, then judgments or liens. Any other outstanding debts are paid last. The executor or administrator can dispute any claims against the estate. Creditors may also be willing to negotiate with the executor or administrator for payment of a lesser amount. If there are not sufficient assets to pay all of the creditors New Jersey has a special procedure for insolvent estates and an attorney should be consulted.See question
House and other assets
I agree with the prior response that you have not provided sufficient facts to provide you with any guidance as to this question. You should consult with an attorney to determine your rights. The answer will depend on whether the decedent died with a Will, or if the decedent died without a Will in which case the New Jersey intestate statute controls.See question
The executor has not told me any details about accounts. Do I have a right to get this information from the executor? If so, how quickly must he provide it because I don't want to miss the deadline. If not, is it sufficient to declare in the disc...
To identify the property or interest being disclaimed you need to know what you are receiving under the Will. I am assuming (since you have used the term "executor" to identify the fiduciary handling the estate) that the decedent had a valid Last Will and Testament which was probated. If that is the case, and you are a beneficiary under the Will, you are entitled to a copy of the Will. You should request a copy of the Will from the Executor, or obtain a copy from the Surrogate. The Will should describe your interest in the estate. For example the Will, might say you are entitled to a specific bequest of $10,000, or a specific bequest of an account at a certain institution or that you are to receive a percentage of the residue of the estate. Once you know what you are entitled to receive under the Will then you can address the disclaimer. The Executor should provide you the information as to your interest in the estate. If the assets you are to receive do not pass under the Will then you will need to know what those assets are with specificity.
The formalities of a disclaimer are as follows: the disclaimer is required to be in writing, signed and acknowledged by the person disclaiming, and must (a) describe the property or interest disclaimed; (b) identify the municipality and county in which the real property is situated, if the property or interest disclaimed is real property; and (c) declare the disclaimer and extent thereof. The disclaimer must be made within the time prescribed by N.J.S.A. 3B:9-4.2. To make a qualified disclaimer (as defined in the IRS Code) of an interest in a decedent’s estate the disclaimer must be made within 9 months of the decedent’s death. Under N.J.S.A. 3B:9-9 the right of an individual to disclaim property or any interest therein is barred by: (1) an assignment, conveyance, encumbrance, pledge or transfer of the property or interest or a contract therefor; or (2) a written waiver of the right to disclaim; or (3) an acceptance of the property or interest or a benefit under it after actual knowledge that a property right has been conferred; or (4) a sale of the property or interest that was seized under judicial process before the disclaimer is made; or (5) the expiration of the permitted applicable perpetuities period; or (6) a fraud on the individual's creditors as set forth in the “Uniform Fraudulent Transfer Act” (R.S.25:2-20 et seq.). The statute provides, however, that the person making the disclaimer is not be barred from disclaiming all or any part of the balance of the property where her or she has received a portion of the property and there still remains an interest which her or she is yet to receive. A bar to the right to disclaim a present interest in joint property does not bar the right to disclaim a future interest in that property. The right to disclaim may be barred to the extent provided by other applicable statutory law. The instrument of disclaimer cannot in anyway direct how the disclaimed property or interest passes.
Disclaimers are complicated and require you follow certain formalities for the disclaimer to be recognized as a qualified disclaimer. I would recommend you seek the advice of legal counsel in this matter as a general post cannot provide adequate guidance as to this issue.See question