Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
1. Obtain Letters Testamentary or Letters of Administration
To pay estate expenses and ongoing bills, you need court authorization. In New Jersey, you file a probate petition in the Surrogate’s Court of the decedent’s county along with the will (if one exists). Once the court issues Letters Testamentary (for an executor) or Letters of Administration (for an administrator), you gain the legal authority to manage estate assets and liabilities.
2. Open a Dedicated Estate Bank Account
After receiving your letters, open a bank account in the estate’s name. Deposit all incoming estate funds—rents, dividends, sale proceeds—into this account. Use it exclusively for estate income and expenses to maintain clear records and avoid commingling.
3. Inventory Assets and Debts
Prepare a comprehensive inventory of the decedent’s assets (real estate, bank accounts, investments, personal property) and a list of known debts (credit cards, mortgages, medical bills). Under N.J.S.A. 3B:18-1, you must file this inventory with the Surrogate’s Court within three months of appointment. N.J.S.A. 3B:18-1
4. Notify Creditors
Publish a notice to creditors in a local newspaper and send direct written notice to known creditors. Creditors generally have nine months from the date of appointment to file claims against the estate under N.J.S.A. 3B:22-7. N.J.S.A. 3B:22-7
5. Pay Priority Expenses
New Jersey law establishes an order for paying estate debts. You must first cover funeral expenses, administrative costs, taxes, and secured claims before addressing general unsecured debts. See N.J.S.A. 3B:19-9 for statutory priority rules. N.J.S.A. 3B:19-9
6. Manage Ongoing Bills During Administration
Use estate funds to maintain utilities, insurance, mortgage or rent, and other necessary services until the estate closes. Document each payment with receipts and bank statements. Keeping services active preserves asset value and protects the estate from penalties or liens.
7. Seek Court Approval for Extraordinary Expenses
For significant or unusual expenditures—such as major repairs, property improvements, or legal fees beyond routine administration—you may need to file a motion and secure approval from the Surrogate’s Court. See N.J.S.A. 3B:21-6 for guidance on obtaining court permission. N.J.S.A. 3B:21-6
Helpful Hints
- Maintain detailed, organized records of all estate transactions.
- Communicate regularly with beneficiaries about the administration timeline.
- Confirm deadlines for creditor claims and tax filings to avoid personal liability.
- Consider whether a surety bond is required; the court can waive it if the will specifies.
- Consult a probate attorney for complex asset sales or disputed creditor claims.