Probate is a court-supervised process for handling the debts and assets of a deceased person. In many estates, however, the court does not oversee every step of the process unless a dispute or special circumstance arises. If you are working on the estate of a deceased loved one, you may wonder how to handle real estate through this process. You could be a named executor or administrator wondering how to deal with it all. The right estate planning attorney can guide you through this process and ensure you get the help you deserve. 

At Pedrani Law LLC, our New Jersey estate planning lawyer knows the challenges associated with transferring real estate through probate. We educate you on what you need to know and manage the entire probate process for the estate. You don't have to do all of this on your own. 

1. Determine Whether Probate Is Required

Not all property must go through probate. In New Jersey, probate is usually necessary if the decedent owned real estate solely in their name or as a tenant in common. Property held in joint tenancy with right of survivorship or in a trust typically avoids probate.

If the estate qualifies as a “small estate” simplified procedures may apply. Your attorney can help you determine if this is applicable.

2. File the Will and Petition for Probate

If the decedent left a will, the named executor must file it with the Surrogate's Court in the county where the decedent resided. In New Jersey, there is generally a ten-day waiting period after the decedent's death before a will may be submitted for probate, unless the Surrogate's Court allows earlier filing under limited circumstances. If there is no will, another interested party may petition the court to be appointed as administrator.

Required documents typically include:

• Original will (if any)

• Certified death certificate

• Completed probate application

• Filing fee

Once these are approved, the court can issue Letters Testamentary or Letters of Administration based on the type of case before it. This grants authority to manage the estate.

After the will is admitted to probate, the executor must also send notice of the probate and their appointment to the beneficiaries named in the will and to certain heirs under New Jersey law, and file proof of mailing with the Surrogate's Court.

3. Identify and Secure the Real Estate

The executor or administrator must identify all real estate owned by the decedent and ensure it is properly maintained during probate. This often includes tasks such as:

• Changing locks

• Securing the property

• Paying property taxes

• Handling insurance issues

• Paying the mortgage (if applicable)

• Notifying tenants (if the property is rented)

The fiduciary must also determine whether the property is to be sold or distributed to heirs.

4. Sell or Distribute the Property

If the will directs the property to be sold, or if a sale is necessary to pay debts or divide assets, the executor can generally list and sell the property. In many cases, this is accomplished under a power of sale in the will, or, if that authority is unclear or contested, with approval from the court. If the property is to be distributed to heirs, a new deed must be prepared and recorded with the county clerk. In many New Jersey estates, the executor must also address New Jersey Inheritance Tax before a deed can be recorded or a real estate sale can close. This often involves filing the appropriate inheritance tax forms and obtaining a real property tax waiver from the Division of Taxation. The waiver clears the tax lien on the property and allows the transfer or sale to be completed.

The executor may have to get the property appraised as part of its sale or distribution. It also means the preparation of an appropriate deed with the correct information. 

5. Final Accounting and Closing the Estate

Before an estate can be closed, the executor must account for all income, expenses, and distributions made during the probate process. A formal court-approved accounting is not required in every estate.

In many New Jersey estates, this is handled through an informal accounting provided to the beneficiaries, along with signed Refunding Bonds and Releases, which are then filed with the Surrogate's Court.

In certain situations, such as when disputes arise, beneficiaries refuse to sign releases, or special circumstances exist, a formal accounting may be required and submitted for approval by the Superior Court.

Once the accounting is accepted, either informally by the beneficiaries or formally by the court, the estate can be closed and the executor discharged from further responsibility.

When a formal accounting is required, it is initially filed with the Surrogate's Court, and may then proceed to the Superior Court for review and approval if necessary.

Work with a New Jersey Probate Attorney for Help Transferring Real Estate

If you need to deal with probate, you don't want to do it by yourself. This is even more true if you need to transfer real estate during it all. Our team can help you navigate the complex aspects of New Jersey probate and transfer real estate, and other assets, as you need. Our job is to help you respect the wishes of the decedent and follow New Jersey law. We are standing by to help. 

Our team at Pedrani Law, LLC can help you with your New Jersey estate planning needs. Contact us today for a consultation.