An Overview of the New Jersey Probate Process (Part 2)

• Death and Taxes

For the next step, any applicable tax forms must be completed and sent to the IRS after inventory is completed. Among these is the 706 form, which is required by the IRS for estate taxes. This must be completed within 9 months of death, unless an extension is granted. Also required is a final 1040 form, which must be completed for the year of death, as well as 1041 forms for any trusts that have been left behind.

Dependent on the final inventory of the estate and completion of necessary tax forms, taxes are then paid to the IRS. Once received, a letter will be issued stating that any and all taxes have been paid. However, this process can take a while, up to 1-2 years after death. Family members need not worry though, as an experienced attorney can handle this step, minimizing both expense and time, as well as helping to avoid serious consequences caused by any potential errors.

Final Accounting

Once everything with taxes and claims is settled, a final accounting is done to summarize affairs for the court. A final accounting includes the initial inventory, any and all earnings, sales, and bills and taxes paid. Payments received by heirs are itemized before payout, which happens once final accounting has been approved by the court. If any disputes arise, beneficiaries are able to challenge the executor before the court.

The Last Round Up

Once everything has been approved and signed off on, final accounting is submitted to the court for approval. They will then issue an order that stating that everything is good in terms of distributing things amongst heirs. At this time, heirs are paid according to the wishes outlined in the will, but if someone has died intestate, heirs are then paid according to those laws.

• Distribution

Distribution is the final step in probate. This is when anything left to any and all heirs is given out. This can include anything from money to property, but all beneficiaries must sign a release and refunding bond before that can happen.

This concludes our quick look at the probate process. While it can be difficult to wrap your head around all the rules and regulations, we do hope that this has helped you to get a little better grasp on the whole thing!

 

 

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