Monmouth, NJ – Individuals named as executors of estates face significant legal and financial responsibilities under New Jersey law. Monmouth County estate planning attorney Christine Matus of The Matus Law Group (https://matuslaw.com/are-you-the-executor-of-a-will-heres-what-to-expect/) guides executors through the probate process, from filing the will with the Surrogate’s Court to final distribution of assets to beneficiaries.
According to Monmouth County estate planning attorney Christine Matus, executors must act quickly after the decedent’s death. The original will must be located and filed with the Monmouth County Surrogate’s Court at One East Main Street in Freehold within a reasonable time. Probate cannot begin until 10 days after death, so executors should plan to visit the Surrogate’s office after this waiting period. Within 60 days of the date of probate, formal notice must be sent to all beneficiaries named in the will and the deceased person’s next of kin.
“The first 60 days after probate are critical,” explains Matus. “Executors must locate and file the will, notify all beneficiaries and next of kin, and begin gathering information about the estate’s assets and debts.” Monmouth County estate planning attorney Christine Matus emphasizes that Letters Testamentary give executors legal authority to act on behalf of the estate.
These court documents are issued by the Surrogate’s office after the will is admitted to probate. Without Letters Testamentary, executors cannot access bank accounts, sell property, or transfer assets. To obtain Letters Testamentary, executors bring the original will and a certified death certificate to the Surrogate’s office. The Surrogate verifies the will was properly executed and that no one has filed objections.
Executors must locate, gather, and safeguard all estate assets, including bank accounts, investment accounts, real estate, vehicles, personal property, business interests, and digital assets. A comprehensive inventory documenting the value of each asset as of the date of death must be created. For real estate in Monmouth County or elsewhere in New Jersey, executors must maintain property insurance, pay mortgages and property taxes, and perform necessary maintenance.
“Properties like vacation homes at the Jersey Shore or rental properties in Red Bank require regular upkeep to preserve their value,” notes Matus. “Failure to maintain real estate can result in personal liability if values decline due to neglect.”
Most Monmouth County estates are settled within nine to twelve months. Simple estates with minimal debt and cooperative beneficiaries can sometimes close in as little as six months, while complex estates involving business valuations, real estate sales, or disputes can take 18 months to two years. Several deadlines affect the timeline. Creditors have nine months from the date of death to file claims against the estate, and executors cannot make final distributions until this period expires. The New Jersey inheritance tax return must be filed within eight months of death, though extensions are available.
Attorney Matus points out that executors must pay all legitimate debts and taxes before distributing assets to beneficiaries. This includes the decedent’s final income tax return, any required inheritance tax returns, and outstanding bills. New Jersey no longer imposes a separate estate tax for deaths on or after January 1, 2018, but estates may still be subject to federal estate tax if they exceed the federal exemption.
New Jersey imposes an inheritance tax on transfers to certain beneficiaries, with the tax rate depending on the relationship between the deceased and the beneficiary. Class A beneficiaries, including spouses, civil union partners, parents, children, grandchildren, and stepchildren, are exempt from inheritance tax. Class C beneficiaries, including siblings, sons-in-law, and daughters-in-law, face graduated rates from zero to 16 percent. Class D beneficiaries, which include all other individuals not listed in other classes, face rates from 15 to 16 percent.
“Executors follow the will’s instructions,” adds Matus. “They cannot change who receives assets, how much each beneficiary gets, or when distributions occur unless the will specifically grants this discretion.”
Executors can be held personally liable for losses caused by mistakes or delays. If assets are distributed before paying taxes, tax authorities can collect from the executor personally. If executors fail to maintain the property and its value declines, beneficiaries can sue for the loss. Executors who miss the deadline to file inheritance tax returns may be personally responsible for penalties if the delay was unreasonable.
Executors are entitled to compensation under N.J.S.A. 3B:18-14. New Jersey law allows executors to receive a percentage of the estate’s value on a graduated scale: up to 5 percent of the first $200,000, 3.5 percent on amounts between $200,000 and $1 million, and 2 percent on amounts over $1 million. Executors may also be entitled to receive interest earned on estate assets held during administration, generally 6 percent of the income received by the estate.
About The Matus Law Group:
The Matus Law Group is a Red Bank and Toms River-based law firm focused on estate planning, probate, and estate administration throughout Monmouth and Ocean counties. Led by attorney Christine Matus, the firm has guided executors through the probate process for over two decades. For consultations, call (732) 785-4453.
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Company Name: The Matus Law Group
Contact Person: Christine Matus
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Phone: (732) 785-4453
Address:125 Half Mile Rd #201A
City: Red Bank
State: New Jersey 07701
Country: United States
Website: https://matuslaw.com/monmouth-county-nj/