Probate And Estate Will In Nj

[hewlett]

My father and mother left my sister who lived close by power of attorney and executor of the will. My parents have property and had a lot of money, but I trusted my sister with the decision making since it was my parents' wishes- I'm ignorant of their financial assets such as money in the bank, life insurance, etc. Dad passed away last year and mom last week. I asked my sister about the assets and all she mentions is there's no money, that we have 1000,dollars in a second mortgage, a lot of repairs to the building in various years that needed fixing, plumber and electricians fees,medicines and a lot of money went into paying two women that took care of mom 24 hours, and the list goes on and on. In the will it mentions that the executor will pay for funeral expenses, but now I'm stock with a $5,000 dollar funeral bill for my mom because she paid for my dad's. I paid $2,000. but I feel that my parents left enough money to pay for the funerals. Should I be responsible for the funeral expenses and in what extend. I feel highly emotional and she might be feeling the same way too. My sister don't want to talk to me about the estate or explain things to me.We are suppose to go to the lawyer for probate of the will.Everything is left to me and my sister. A big building and a house in north jersey. Should I get a lawyer to look into the finances or should I go with a financial planner? What is an inheritance tax? How much would we have to pay on taxes? What names should the properties or titles to go under our names or leave them as is? How long would this take to do all the paper work? How about filing the income tax for my mother this year? Please help me with some guidance so I have an idea of what to do. Thank You.

[Walwyn]

The death of a loved one is an extremely emotional time.  It is sometimes difficult to make good decisions when emotions are so high.  You have my sympathy.

Though I am not licensed in NJ, I can give you a few insights that should answer your questions.  I can not tell you exactly how the probate process works in New Jersey(and it may be slightly different in each Court).  However, the probate process is set up to make sure that any possible creditors and all potential heirs are are fairly dealt with under the provisions of the will and applicable law.  That means that all of the assets and liabilities(debts) of the estate will be laid out and dealt with by the Court.  You should have access to all of the information as the estate goes through the probate process.

The lawyer who is in charge of probating the will can answer any state specific questions.  Although you have a right to hire a separate attorney to represent your interests, I wouldn't do it until you went to the probate attorney and got a better idea of what is going on.  You may find that all of your questions are answered and that a separate attorney is an unneeded expense.  As far as a financial planner goes; I think it is always wise to meet with a financial adviser to plan out your own use of resources and plan for retirement.  However, I would not get one just to help with the probate process.  If, after meeting with the probate attorney, you feel the need to have separate representation, an attorney would be the way to go.

I can not tell you what NJ inheritance taxes are, however, I bet that there will be no tax to pay because the estate is not passing enough money.  The person to answer that question definitively would either be a CPA or a tax attorney in NJ.  Under the current law, there will be no Federal estate tax.

The titling of the properties should be handled through the probate process.  They will either be retitled to the new owners or they will be sold and the funds distributed appropriately.  

You also asked about a tax return for your mother for this year.  There need to be two returns prepared, an income tax return and an estate tax return.  An accountant should be hired to do each of these.

My understanding from communications I have received from other attorneys is that the probate system in New Jersey is simpler and more streamlined than most of the rest of the country.  I hope it goes smoothly for you.

Summary,

Take a moment and breathe and know that you will be okay.  The funeral expenses will have to be paid(whether by you and your sister or by the estate).  The tax returns will have to be filed but no estate or inheritance tax will likely be due at all.  The probate attorney should be a big help and give you lots of guidance.

Best of Blessings,

Mark