If a someone dies and has no Will, and he has no wife or kids. There are 3 brothers and sisters. ?

Question

One of the sisters is going to be executor, but has never done this before. How should she proceed. The brother did not have a lot, but he had a retirement plan, bank acct. and life ins. It seem since there was no will it will be split between the 3 siblings. Someonen also told her she has to get bonded, because the was no will. Does anyone know the best way to go forward? Thank You

Answer 1

In different states there are different laws about how an estate should be divided if there is no will.

Bonded is usually a situation where a company insures an employee against theft from his employer or their clients. (So a plumber may be bonded so the firm is covered if he steals from a client, for example.) I'm not sure if this is applicable here, but it might be.

You definitely need to consult a lawyer, one familiar with estate planning. There may be strict laws about the estate division that cannot by overridden by the executor. (BTW: a female executor is technically called an executrix.)

Here is one key point: Handle the retirement plan very carefully! Have your lawyer consult a CPA familiar with these. If these are merely emptied out and divided among one or more heirs, the taxes could be enormous. There are ways to preserve this money, but find out before acting. (Check out Ed Slott's site at irahelp.com. He's the leading expert on what to do with retirement plans. And no, I'm not Ed Slott and have no affiliation with him--I just know and respect him.)

Answer 2

All the property would most likely go to any living parents first in most US states.

Answer 3

You are right.  Since he died without primary heirs (wife and cgildren) then his secondary heirs (brothers and sisters or parents) will inherit.They will equally share his estate hich consist of his reiremen benefits,insurance, bank account proceeds and all other properties he may have after his debts are settled.  The first thing for them to do is to agree on an extrajudicial settlement among themselves and when they have agreed on how they shall divided the benefits they then submit this for the approval of the court and issuance of the necessary order on he nasis of which they can now divide h inheritance amongst themselves.  It is better for them to already discuss and ageree rather than have one of them petition for a judicial settlement which means a long court case. they aicablyn duscuss and agree, draw up their agreement and then petition the court for approval of the extrajudicial setlement.

Answer 4

I would wait on hiring the lawyer until I had too. Since your brothers estate was small why would you want to give a good portion of it to a lawyer. Ask for a meeting with the Probate Judge and his staff who will assit you in filing the proper paperwork. Do not be so quick on the gun to hire a lawyer please..........It is easy to recommend this action but they do not work cheap and you did mentioned your brothers estate was small. The Probate courts WILL HELP YOU.  Good luck

Answer 5

I am not a lawyer, but I have done this before in NJ.  While it is possible to proceed without legal advice, I wouldn't recommend it.  DO NOT take my comments to be legal advice!!!  They are observations I have made through experience, but I AM NOT A LAWYER

First of all, an "Executor" is named in a will; if this person had no will then the sister would have to apply to the court and be named "Administrator".  The other brothers and sisters would probably have to agree to this.  

Life insurance typically has a named beneficiary - it passes outside of probate, so it requires no will.  Proceeds are payable immediately to the beneficiary.  When you file a claim with the ins. co., they should have a record of the beneficiary.

Same is true with an IRA - there is a named beneficiary, and proceeds are payable with no will, no administrator.  The exception to this is that if there is no beneficiary (a pretty unusual circumstance) or if the been is deceased, then the proceeds go back into the estate and are distributed by the administrator.  

Typically, the administrator is responsible for all of the debts of the estate (outstanding bills, mortgage, rent, loans, other outstanding liabilities), and must publish ads in newspapers asking anyone who is owed money to come forward within a reasonable time. She must file a final 1040 and NJ Tax Return, and pay any taxes due out of the proceeds of the estate.  

Next, the administrator is responsible for tallying all assets, including stuff like cars, furniture, real estate, personal property, bank accounts, investments, etc.  She can liquidate everything if she wants to.

Once everything is liquid, she can then go ahead and divide up all the assets among the siblings and interested parties.  Because there was no will, the State will intercede with some laws about how this is to be handled, and her actions will fall under the scrutiny of the probate court.

Keep in mind that any "interested parties", i.e., those who were related to the decedent, anyone who feels that they should share in the distribution, can appeal to the court and/or require an accounting statement from the administrator - it is very important that she keep track of every penny and follow the guidance of her attorney.  

I hope this helps - if it is a small estate it should be no problem, but a lawyer is your best bet.  His fee can be paid out of the estate before distribution.  

Answer 6

No

Answer 7

The best way is to seek a referral to a local attorney who can answer all your questions & handle all the paperwork. Preferably a general practitioner.  You don't need an estate specialist for a simple matter like this.  But you do need a lawyer.  Bonds can often be waived in small estates.

Answer 8

In my opinion, the remaining brothers and sisters should get together and hire a lawyer to settle this matter.  

Answer 9

First thing to do is to look at the account agreements for the retirement plan, bank account, and life insurance.  99% of the time, the account holder designates beneficiaries for these types of accounts and assets.  The designated beneficiaries are entitled to the monies, regardless of the intestate probate laws of the state.

Answer 10

No, she does not have to get bonded unless the laws in your state require that she be in order to be executrix. She does need a lawyer though that can explain the ins and outs of the process. However, keep an eye on the lawyer. My grandmother's succession has been dragging out for 2 years already