While almost everyone knows it’s best to have a Will — many people don’t. When you die without a Will, it is called “intestate.” Each state has its own laws dictating what happens to a person’s assets if they die intestate. Here is a summary of New Jersey’s intestate laws and what they mean for a deceased person’s assets and their heirs.
Size and Relationships Matter
The size of the estate — meaning the total worth of the assets — and the deceased’s relationship status determine what steps the Surrogate must take:
- If someone dies intestate with assets worth less than $50,000 total and has a surviving spouse, registered domestic partner or civil union partner, then the Surrogate may issue an Affidavit of Surviving Spouse. The spouse/partner shall be entitled to all the real and personal assets without administration, and the assets of the estate up to $10,000 shall be free from all debts. If the total assets are worth more than $50,000, the spouse/partner has the right to be appointed as estate administrator by the Surrogate.
- If someone dies intestate with assets worth less than $20,000 total and does not have a surviving spouse, registered domestic partner or civil union partner, then the Surrogate can issue an Affidavit of Next of Kin to handle disposition of the assets. However, before someone can be appointed, all other close next of kin must consent to the appointment. If the assets are worth more than $20,000 and there is no spouse/partner, the Surrogate will appoint an administrator from the next of kin (upon consent from the other next of kin). Then, the property is distributed to the next of kin per the State’s Law of Intestate Succession (see below). If the deceased had no immediate family, the assets may be distributed to distant relatives or transferred to the State.
New Jersey Law of Intestate Succession
What happens to a deceased person’s assets when they die intestate in New Jersey depends on individual circumstances around his or her relationship status and if he or she has children. The Law of Intestate Succession boils down to a complex math problem with many variables. This summary does not cover every circumstance, but provides a basic breakdown of who gets what following death by intestate:
- Children, but no spouse/partner: the children inherit the entire estate equally
- Partner/spouse, but no children or parents: the partner/spouse inherits the entire estate
- Partner/spouse and children from that relationship: the partner/spouse inherits the entire estate
- Partner/spouse and children from that relationship, plus stepchildren: the partner/spouse inherits 25% of the assets (but not less than $50,000 or more than $200,000) plus half the balance of the estate; the deceased’s children share the remaining balance
- Partner/spouse and children from that relationship, as well as children from another relationship: the partner/spouse inherits 25% of the assets (but not less than $50,000 or more than $200,000) plus half the balance of the estate; the deceased’s children share the remaining balance
- Partner/spouse and living parents: the partner/spouse inherits 25% of the assets (but not less than $50,000 or more than $200,000) plus three quarters the balance of the estate; the deceased’s parents inherit the remaining balance
- Parents only: the parents inherit the entire estate
- Siblings only: the siblings inherit the entire estate
The scenarios above don’t come close to accounting for every situation, especially when you consider the prevalence of blended families, adoption and other complex family dynamics.
The Laws of Intestate attempt to address the distribution of assets in as fair a way as possible, but they certainly don’t account for the deceased’s wishes. Plus, dying intestate creates confusion, work and stress for those left behind. This is why estate planning is important. If you have questions about estate planning or an intestate death, please call us at 856.782.8450 to discuss your options.
