Detailed Answer
Under New Jersey law, bank accounts owned by a decedent typically become part of the probate estate. To access and withdraw those funds, an executor (if there’s a valid will) or an administrator (if there’s no will) must qualify in Surrogate’s Court by obtaining Letters Testamentary or Letters of Administration (N.J.S.A. 3B:12-13). These letters authorize the fiduciary to collect, manage, and distribute estate assets.
Once qualified, the fiduciary should gather the following documents:
- Certified copy of the death certificate
- Certified letters from the Surrogate’s Court
- Copy of the decedent’s will (if any)
- Recent bank statements
Present these to the bank. Each institution sets its own policy but typically requires originals or certified copies. After verification, the bank will allow the fiduciary to open an estate account or place funds into the fiduciary’s existing estate account. All withdrawals must flow through that estate account to ensure proper accounting and creditor protection.
Before distributing any funds to beneficiaries, the fiduciary must notify known creditors and publish notice to unknown creditors under N.J.S.A. 3B:19-8 through 3B:19-19. After the six-month claim period, valid claims must be paid from estate assets.
If the decedent owned no real estate and the total personal property value does not exceed $20,000, a simplified small-estate procedure may apply under N.J.S.A. 3B:20-1. In that case, you can petition the Surrogate’s Court for an order directing the bank to release funds directly to heirs or beneficiaries without full probate.
After satisfying debts, taxes, and administrative expenses, the fiduciary distributes the remaining balance according to the will or, if there is no will, under New Jersey’s intestacy law at N.J.S.A. 3B:5-4.
Helpful Hints
- Start early: Contact the bank promptly to understand its requirements and forms.
- Keep meticulous records: Track every deposit, withdrawal, and expense.
- Check for payable-on-death or transfer-on-death designations: Those bypass probate.
- Consult the Surrogate’s Court website for county-specific forms and filing fees: https://www.njcourts.gov/courts/surrogates.html
- Consider professional help: A probate attorney or paralegal can streamline complex estates.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney about your specific situation.