Detailed Answer
When a New Jersey resident dies owning one or more bank accounts, an executor or administrator must secure those funds to protect the estate. If co-heirs refuse to cooperate, you cannot rely on a joint signature. Instead, you need formal court documents issued by the Surrogate’s Court.
1. Letters Testamentary or Letters of Administration
Under N.J. Rev. Stat. § 3B:3-25, the Surrogate’s Court issues Letters Testamentary (if there is a will) or Letters of Administration (if there is no will). These certified letters name the fiduciary and grant authority to collect, manage, and secure estate assets. Most banks accept an original or certified copy of these letters as conclusive proof:
- Obtain certified copies from the County Surrogate’s office.
- Present the letters to each bank holding the decedent’s funds.
- Request that the bank freeze the account and issue statements only to the fiduciary.
Statute link: N.J. Rev. Stat. § 3B:3-25
2. Small Estate Affidavit
If the total personal property subject to administration does not exceed $20,000, you may use a Small Estate Affidavit under N.J. Rev. Stat. § 3B:24-1. This streamlined process avoids full probate:
- Prepare and notarize the affidavit listing the decedent’s assets.
- Swear under penalty of perjury that the estate qualifies as “small.”
- Present the affidavit and a death certificate to the bank.
Statute link: N.J. Rev. Stat. § 3B:24-1
3. Court Order to Freeze Assets
If heirs actively oppose the freeze or dispute your authority, file a petition in Surrogate’s Court asking for injunctive relief or an order to show cause. In your petition, include:
- Proof of your appointment (copy of your petition for letters).
- Evidence of impending dissipation or transfer of funds.
- A request for the court to issue a temporary restraining order against account withdrawals.
Helpful Hints
- Start the probate or administration process promptly to secure your authority.
- Check with each bank regarding its requirements for certifying court documents.
- Keep multiple certified copies of your letters; banks often keep originals.
- If the estate qualifies as “small,” use the affidavit to save time and expense.
- Consult a probate attorney if co-heirs file objections or create delays.
Disclaimer: This article provides general information under New Jersey law. It does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.