What happens if you are the executor of an estate in NJ?
When you discover that you are named as the executor of an estate, it can be overwhelming. The executor of an estate has a fiduciary obligation under New Jersey estate law to administer the estate and collect and distribute the assets in accordance with the last person’s will.
How is the executor’s Commission calculated in New Jersey?
The amount of the commission is proscribed by law in N.J.S.A. 3B:18-13 – 16 . The executor can take commission on both the income the estate earns, and the “corpus” of the estate – the assets that the estate holds. The amount of each is calculated differently.
Who is required to file a New Jersey estate tax return?
The executor, administrator, or heir at law of the estate must file a New Jersey Estate Tax return (Form IT-Estate) if the deceased person’s gross estate, plus adjusted taxable gifts, exceeds $675,000 as determined by the provisions of the Internal Revenue Code in effect on December 31, 2001.
Can an executor of an estate take a fee?
These same statutes also provide that if a person dies intestate (dies without a Will), the administrator of the estate may also take a fee. Since the fees for an executor and administrator are the same, I will use the term interchangeably for purposes of this post.
What is the commission schedule for an executor in New Jersey?
Similarly, the commissions to which an executor or an administrator are entitled are set by the New Jersey legislature, and are the same for both titles. The commission schedule is as follows: 5.0% of the first $200,000 in value. 3.5% on the excess over $200,000 up to one million dollars.
Is the executor of an estate entitled to a commission?
The executor of an estate, as well as an administrator of an estate, is entitled to a commission based on the value of the estate. An “executor” is what we call the personal representative of an estate in which a Will was probated with the Surrogate’s Office. The executor would have been named in the Will.
What are the probate laws in New Jersey?
New Jersey probate law requires that the executor must act in the best interests of the estate and the beneficiaries. After the will is probated, the executor must provide formal notice of the probate to the beneficiaries named in the will and the deceased person’s next of kin. Then the executor must gather the deceased person’s assets.