Short answer
New Jersey's intestacy statute decides, based on family relationship. A spouse with children who are all the spouse's gets everything. Without a spouse, children split the estate equally. If there are no spouse or children, parents inherit, and then brothers and sisters. A Surrogate appoints an administrator to carry it out.
The basic order, from the Surrogate's guide
Morris County's Surrogate publishes a plain summary of the rules, which it labels as of February 27, 2005. If a person dies leaving a spouse and children who are also the spouse's children, the spouse receives the entire estate. If there are children but no spouse, the children share equally, and grandchildren take a deceased parent's share. If there is no spouse and no children and the parents survive, the parents inherit everything. If no parent survives, brothers and sisters share equally.
Blended families change the math
When there is a spouse and children who are not all the spouse's children, the guide says the spouse receives the first 25 percent of the estate (not less than the first $50,000 nor more than $200,000) plus half of the balance, and the rest goes to the children. When there is a spouse and parents but no children, the spouse receives that same first 25 percent plus three quarters of the balance, and the parents get the rest. These are the rules as the Surrogate summarized them, so ask an estate attorney to apply them to your facts.
A house is an estate asset, not a family decision
Even when the heirs are obvious, nobody can sell the house just because they are an heir. Camden County says the Surrogate grants letters of administration according to the statutory priorities, and Morris County says an administrator appointed by the Surrogate gets the authority to transfer property. The heirs' shares are worked out afterward. If several heirs share the estate, the sale proceeds are divided according to the statute, after debts, taxes and expenses.
Tax follows the relationship
The same relationships drive New Jersey inheritance tax. The Division of Taxation's executor guide says surviving spouses, parents, children and grandchildren are exempt as Class A beneficiaries, brothers, sisters and children-in-law are Class C, and nieces, nephews, aunts, uncles, friends and non-relatives are Class D. Real estate transfers always require Form 0-1 either way. Ask the attorney whether the heirs' shares will create any tax before you set a sale price.
When the heirs want a clean, fast exit
Heirs who live far away, or who do not want to repair and list the house, sometimes prefer a cash sale. Kaizen Home Buyers makes cash offers on New Jersey houses as-is, with no repairs and no agent commission. We can give an offer within 24 hours and close in 14 to 30 days, or on the date the estate chooses. The administrator signs for the estate, and the heirs can agree in advance on how proceeds will be divided. Call 267-329-0084. An agent listing is still the other main option.