Detailed Answer
If a New Jersey resident dies leaving a small estate, heirs can use an Affidavit in Lieu of Administration—often called a “small estate affidavit”—to collect personal property without a full probate. New Jersey Court Rule 4:98 governs this process (N.J. Ct. R. 4:98), and the statute authorizing it appears in N.J.S.A. 3B:20-1 et seq. (N.J. Stat. §3B:20-1).
1. Confirm Eligibility
- Value cap: Total personal property (excluding vehicles) must not exceed $20,000.
- No real estate: You cannot transfer land or structures via this affidavit.
- No prior administration: The decedent’s estate must not already be in probate.
2. Gather Required Documents
- Certified death certificate of the decedent.
- Affidavit form: Obtain from the county Surrogate’s Office or NJ Courts website.
- Itemized inventory: List each asset and estimated value.
- Heir information: Full legal names, addresses, and relationship to decedent.
- Creditor notice: If the estate owes debts, notify known creditors as required by rule.
3. Complete the Affidavit
Heirs sign under oath that:
• They qualify under N.J.S.A. 3B:20-1 et seq. to use a small estate affidavit.
• No administration proceedings currently exist.
• The listed property’s value does not exceed the statutory limit.
4. Notarize and File
Have the affidavit notarized. File the original with the Surrogate’s Office in the county where the decedent lived and pay any filing fee (usually under $25). The Surrogate will record the affidavit and return certified copies to you.
5. Wait the Statutory Period
You must wait five business days after filing to allow creditors to object (N.J. Stat. §3B:20-1). If no one objects, you proceed to collect assets.
6. Collect and Distribute Assets
Use certified copies of the filed affidavit to present to banks, brokerage firms, and other custodians. Once the institution releases funds or property, distribute them according to the decedent’s will or, if there is no will, under New Jersey’s intestacy rules (N.J. Stat. §3B:5-4). Typically, heirs share equally unless the will specifies otherwise.
Disclaimer: This article provides general information only and is not legal advice. Consult a licensed attorney to address your specific situation.
Helpful Hints
- Contact the Surrogate’s Office early to confirm local fee schedules and form availability.
- Keep copies of every document you file or sign.
- Notify all potential heirs and creditors promptly to avoid delays.
- Ask the bank about its internal requirements—some banks require their own form in addition to the affidavit.
- Consider consulting an estate attorney if the estate value edges close to $20,000 or if multiple creditors exist.