Short answer
Notify heirs and beneficiaries within 60 days of probate, handle creditor claims, and obtain a Release and Refunding Bond from the beneficiaries. Creditors have nine months from death to present claims. An executor who pays out too early can be personally liable, so keep the sale money in the estate until the attorney says it is safe.
Tell the heirs within 60 days
Morris County's Surrogate says that within 60 days of the will's probate, the executor shall notify all the heirs and beneficiaries named in the will, with proof sent to the Surrogate's Court. Sending the notice does not need a lawyer to draft it, but keep a copy and the mailing proof. This step happens before the house is sold in most estates, because letters usually come first.
Creditors get nine months
The guide cites N.J.S.A. 3:22-4 and says creditors of the decedent need to present their claims to the executor in a sworn writing within nine months from the date of death. The executor cannot distribute assets to beneficiaries until all claims are satisfied, or the executor may be personally liable to the creditor. The guide also says that if a claim is not presented within nine months, the executor is not liable for assets distributed or paid on other claims before the claim shows up. Claims can be disputed, and a creditor who is disputed must start an action within one month of the notice.
The Release and Refunding Bond
The guide states that all executors are required to obtain a Release and Refunding Bond from the beneficiaries listed in the will. In plain terms, that is a signed promise to give money back if a valid claim appears later. Ask the attorney what form the Surrogate expects and when to collect it. Do not hand out sale proceeds first and paperwork second.
Taxes and the executor's pay
The Division of Taxation's executor guide says that the executor may also have to file income tax returns for the decedent, and that inheritance tax, if any, is due within eight months after death or 10 percent annual interest accrues. Camden County's Surrogate says an executor or administrator is generally entitled to a commission of 5 percent on the estate corpus and 6 percent on the income generated during administration. Ask the attorney how a commission is reported and taxed.
Where a cash sale fits
A fast sale means less time paying for taxes, insurance and utilities on an empty house, which reduces what the executor has to explain later. Kaizen Home Buyers makes cash offers on New Jersey houses as-is, with no repairs and no agent commission. We can make an offer within 24 hours and close in 14 to 30 days or on the date the estate wants. Call 267-329-0084. Listing with an agent is still worth pricing if the house is in good shape.