New Jersey Probate court proceedings can be long, costly, and definitely confusing.  The good news is that you can take steps before death that can make the process go more smoothly.  These steps are state dependent so here are your options in New Jersey.

Living trusts

Living trust refers to a trust that may be revocable by the trust creator or settler (known by the IRS as the Grantor). Living trusts are often used because they may allow assets to be passed to heirs without going through the process of probate. Avoiding probate will normally save substantial costs (the probate courts, in some states, charge a fee based on a percentage net worth of the deceased), time, and maintain privacy (the probate records are available to the public, while distribution through a trust is private). Both living trusts and wills can also be utilized to plan for unforeseen circumstances such as incapacity or disability, by giving discretionary powers to the trustee or executor of the will.

In New Jersey, you can make a living trust to avoid probate for virtually any asset you own — real estate, bank accounts, vehicles, and so on. You need to create a trust document (it’s similar to a will), naming a successor trustee which is someone to take over as trustee after your death. Then you must transfer ownership of your property to yourself as the trustee of the trust. Once all that’s done, the property will be controlled by the terms of the trust. At your death, your successor trustee will be able to transfer it to the trust beneficiaries without probate court proceedings.

Joint ownership

If you own property jointly with someone else, and this ownership includes the “right of survivorship,” then the surviving owner automatically owns the property when the other owner dies. No probate will be necessary to transfer the property, although of course it will take some paperwork to show that title to the property is held solely by the surviving owner.

In New Jersey, there are two types of ownership, joint tenancy and tenancy by the entirety.   Joint tenancy is property owned in joint tenancy automatically passes to the surviving owners when one owner dies. No probate is necessary. Joint tenancy often works well when couples (married or not) acquire real estate, vehicles, bank accounts or other valuable property together. In New Jersey, each owner, called a joint tenant, must own an equal share.  Tenancy by the entirety is like joint tenancy, but is allowed only for married couples and registered domestic partners in New Jersey.

Payable-on-death designations for bank accounts

Payable-on-death bank accounts offer one of the easiest ways to keep money — even large sums of it — out of probate. All you need to do is fill out a simple form, provided by the bank, naming the person you want to inherit the money in the account at your death.

As long as you are alive, the person you named to inherit the money in a payable-on-death (POD) account has no rights to it. You can spend the money, name a different beneficiary, or close the account. At your death, the beneficiary just goes to the bank, shows proof of the death and of his or her identity, and collects whatever funds are in the account. The probate court is never involved. If you and your spouse have a joint account, when the first spouse dies, the funds in the account will probably become the property of the survivor, without probate. If you add a POD designation, it will take effect only when the second spouse dies.

Transfer-on-death registration for securities

Almost every state has adopted a law (the Uniform Transfer-on-Death Securities Registration Act) that lets you name someone to inherit your stocks, bonds or brokerage accounts without probate. It works very much like a payable-on-death bank account. When you register your ownership, either with the stockbroker or the company itself, you make a request to take ownership in what’s called “beneficiary form.” When the papers that show your ownership are issued, they will also show the name of your beneficiary.  After you have registered ownership this way, the beneficiary has no rights to the stock as long as you are alive. But after your death, the beneficiary can claim the securities without probate, simply by providing proof of death and some identification to the broker or transfer agent. (A transfer agent is a business that is authorized by a corporation to transfer ownership of its stock from one person to another.)

Options that do not apply to New Jersey

Transfer-on-death deeds for real estate and Transfer-on-death registration for vehicles is not allowed in New Jersey.

Simplified New Jersey Probate procedures

New Jersey has a simplified probate process for small estates. To use it, an executor files a written request with the local probate court asking to use the simplified procedure. The court may authorize the executor to distribute the assets without having to jump through the hoops of regular New Jersey Probate probate.

You can use the simplified small estate process in New Jersey if:

1. There is no valid will and the value of all property doesn’t exceed $10,000. The surviving spouse or domestic partner is entitled to all of it without probate. N.J. Stat. Ann. § 3B:10-3.

or

2. There is no valid will, the value of all property doesn’t exceed $5,000, and there is no surviving spouse or domestic partner. One heir, with the written consent of the others, can file an affidavit with the court and receive all the assets. N.J. Stat. Ann. § 3B:10-4.

Isn’t It Illegal To Sell Property That Is Being Probated?

It’s commonly assumed that sales of real estate in probate are extremely difficult, if not impossible. The truth is that, in most cases, the Executor has the power to make a decision to sell – as long as he has the agreement of all the heirs to the estate. In some cases, he or she may also need the permission of the court, but even if that happens, the agreement of all the heirs will usually be all the judge needs to approve a sale of real estate. Research the laws in your state for any requirements – for instance, some require that the property be listed through a licensed realtor.

Technorati Tags: New Jersey Probate

1. The house is hours away.  This is a problem because you’ll need to make frequent trips in order to maintain the house and make sure it’s secure from intruders.
2. Property Taxes.  Once you own the house, you will be on the hook for property taxes.
3. Upkeep.  You will be required to keep the house in decent condition.  If you neglect to cut the grass, trim the shrubs or remove snow from the driveway and walkways you could be fined by the town.
4. Lawsuits.  If someone, a child maybe, were to get hurt on your property because he slipped on some ice, you will be held liable and could get sued.

Assuming you don’t want the headaches of being a landlord, or even the many headaches that come with hiring a management company, your best bet might be to sell the place and get a few hundred thousand dollars in your pocket.  There are a couple ways you could sell, but the traditional ways can be costly and cut into your profits.  One of the quickest and most painless ways to sell an inherited or probated house is to an investor and here are 3 reasons why…

1. Sell quickly! Often times an investor can close in as little as 2 weeks compared to, on average, 6+ months if listed with a Realtor.
2. Get Cash! The reason an investor can close quickly is because their offers will be Cash Offers.  You will not have to worry about banks holding up the transaction because of financing issues.
3. Investors will buy your house AS-IS. This means no clean up for you, no upgrading or getting the property in a livable condition.  Buyers a very picky in today’s market and will demand all the amenities.
4. Pay NO Realtor Fees or Commissions!   With a traditional sale of a house, there will be, on average a 6% commission paid out to the Realtors as well as closing fees.  An investor (even if the investor is a Real Estate Sales Agent) will not charge a commission and will also pay all the closing costs if need be.

When selling to an investor, you will have to be honest with yourself about the market value of the home.  An investor will give you a fair offer.  This offer will be based on the recently sold homes in your area minus the repairs that need to be done to the house in order to get the condition of the house back on par with others in the neighborhood.

It’s never a bad idea to talk with an investor before listing your property to see what they will offer.  You can always say ‘No’. If you list with an Realtor first, you will be tied in for 180 days or more, all the while making any mortgage payments, paying taxes and utilities, maintaining the house and making the necessary improvements with out even know if the house will sell.

Hope this article helps

Technorati Tags: inheritance, investor, new jersey, nj, probate, selling house

Being the personal representative (executor or administrator) of an estate is a big undertaking.  The responsibility can be overwhelming at times so it’s important to know what you are getting into and take the time to make an informed decision.  If the deceased left a will (testate) then that will names the executor.  If you are named it does not mean you have to accept, but know that you were named because the decadent believed you were the right person for the job.  If the deceased did not leave a will (intestate), then the probate court will appoint an administrator.  Usually someone will petition to be the administrator and if nobody accepts the court could appoint a probate lawyer to act on the estates behalf.

What are the personal representatives duties?  Below is a list broken down into sections to help understand the process better.

Notify Next of Kin, Collect Debts and Record the Assets

• Find all the documentation and papers (Will, death certificate, birth certificate, marriage certificate)
• File the papers with the probate court (In New Jersey it is called the Surrogate Court)
• Determine if there was any life insurance and if so file the appropriate claim forms (you may also need a statement from the doctors)
• Obtain social security burial allowance if applicable.
• Did the deceased have any benefits? (veteran’s, social security or pension)
• Transfer any bank accounts to the estate
• Collect all assets.  These things include stocks, bonds. automobiles, furniture, jewelry, status of any business, deeds, real estate owned, etc…
• Locate names and addresses of all heirs, legatees, devisees and next of kin.  Notify all interested parties of the probate within 60 days: advising of the name & address of the Executor, the place & date of the probate, & that a copy of the will be furnished upon request. If there are charitable bequests, notice must be given to the Attorney General of NJ. A proof of mailing is filed with the Surrogate’s Court.

Determine all Debts and Claims against the Estate

• What are the current bills owed (doctor, hospital, rent, utilities, etc.) and arrange to pay.
• Discontinue services on charge accounts
• Are there any outstanding debts such as mortgage, life insurance, car loan?
• To determine if the beneficiary is a child support judgment debtor,obtain an identification certification from each beneficiary, and order a certified child support judgment search from a private judgment search company. Publish Death Notice about claims against the estate in newspaper
• Review all claims for their validity, amount and correctness.
• Oppose any false claims

Manage the Estate

• Set up bookkeeping records and / or an estate account.
• Re-register stocks, bonds; arrange for collection of dividends and interest.
• Inventory all items of property and arrange for their appraisal.
• Examine all real estate as to condition, adequacy of insurance, status of taxes and assessments.
• Collects rents, make reports, obtain tenants, maintain necessary insurance in force, arrange for electricity, fuel, telephone, etc.
• Review all investments as to safety and quality; make necessary changes as prudence indicates.
• Examine books and records of any business interest. Have necessary audits and appraisals made.
• Supervise the family owned business.
• Request allowance from court for support of deceased’s family.

Determine and Pay all Taxes

• Compute value of estate and probable state and federal taxes.
• Select valuation date for federal estate tax.
• Determine whether administrative expenses should be charged against income taxes or estate taxes.
• Prepare estate’s income tax return also last income tax return of decedent.
• Determine charitable and other deductions.
• Determine how funds will be raised to pay taxes.
• Prepare inheritance tax returns.
• Prepare federal inheritance tax returns.
• Pay personal property or real estate taxes, if any.

Distribute the Assets

• Determine who is entitled to share in the estate.
• Sell assets to raise cash for specific legacies.
• Determine how assets will be distributed, which legatee and devisee is to get each item of property.
• Pay all final costs.(Including any child support obligation).
• Arrange for transfer and re-register of securities.
• Prepare detailed informal or formal account for court.
• Obtain release and refunding bonds from all beneficiaries and file with Surrogate’s Court.

How are taxes handled in New Jersey Probate?  When it comes to federal and state tax purposes, two events get set in motion: it puts an end to the decedent's last tax year when it comes to filing an income tax return, and it establishment of an estate occurs.  The estate itself is then taxed.

Federal Taxes

Let's separate the federal and state for a minute and breifly explain what has to be done in order to fullfil any tax burden.  For federal purposes, a few forms must be completed and filed, dependent on the decedent's income, the size of the estate and the income of the estate:

• Final Form 1040 Federal income Tax Return
• Form 1041 Federal Fiduciary Income Tax returns for the estate
• Form 709 Federal Gift Tax return
• Form 706 Federal Estate Tax return

The federal estate tax is based on the value of the estate's assets less liabilities.  It's not that easy however because you'll have to take into concideration any exceptions…

Exception #1: Unlimited Marital Deduction.  All of the assets left to a surviving spouse are exempt from federal estate tax

Exception #2: Estate and Gift Tax Exclusions. The estate tax applicable exclusion permits a transfer up to $3.5 million at your death to anyone without incurring an estate tax.  Note: in 2010 there will be a 1 year repeal on the estate tax.  In 2011 and beyond, estates will be subject to estate tax at a top rate of 55% with only a $1 million exemption available.

Exception #3: Qualified Charitable Donations. Assets passed to charity are exempt from estate tax.

Exception #4: Federal Gift Tax Applicable Exclusion.  Fixed at $1 million and permits a transfer to anyone during a lifetime without incurring a gift tax.  Any gift amount will then be subtracted from the allowable $3.5 million exemption at death.  Meaning, if you give a $1 million gift to your best friend, $2.5 million will remain of your exemption at death.

Now let's take a look at State Taxes.  The Personal representative must file the appropriate state income tax return for the deceased and any state income tax returns for the estate during the probate period.  That is not all however, the PR must also make sure to pay any local real estate tax, personal property tax, business tax and any unresolved tax issues related to prior year tax returns.

State Estate Tax

Under New Jersey Law, there is an estate tax on assets anything passed to someone other than a spouse in excess of $675,000.  The rates will vary from 4.8% to 16% with the first $52,174 taxed at 37%.  

State Inheritance tax

New Jersey inheritance tax is broken up depending on who the beneficiary is.  Below is an explanation of the rates at which someone will be taxed.

- Spouse, child, grandchild or parent.  Any inheritance passing to a spouse, child, grandchild or parent is completely exempt from the New Jersey inheritance tax.  These persons are considered “Class A” beneficiaries.

- Siblings.  Inheritances passing to a brother or sister are exempt for the first $25,000 to each such brother or sister.  These persons are considered “Class C” beneficiaries.   Thereafter, a tax of 11 percent is imposed.  After the total amount exceeds $1.1 million, the tax is 13 percent.

- Charities.  Anything left to a charity is exempt from New Jersey inheritance tax.  Charities are considered “Class E” beneficiaries.

- All others.  All other relatives, or to non-related persons are considered “Class D” beneficiaries, and their inheritances will be subject to a New Jersey tax of at least fifteen percent.  If the value of the inheritance is less than $100, no tax will be due.  However, for inheritances worth more than $100, there is no exemption.

If the beneficiaries are subject to New Jersey inheritance tax, they have to file an inheritance tax return.  The due date for New Jersey inheritance tax is 8 months from death. If the decedent was a resident of New Jersey, Form IT-R should be used, and if the decedent was not a resident, then Form IT-NR should be used. If the beneficiaries, being the immediate relatives, are exempted from the inheritance tax, they don't have to file an inheritance tax return. They will have to use Form L-8 in order to release bank accounts, stocks, bonds etc, and Form L-9 in order to release the State's lien on real property. Before transferring the assets like real estate or stocks, the beneficiary has to obtain a written consent from the Director of the New Jersey Division of Taxation. This waiver, which doesn't apply when Forms L-8 and L-9 are not applicable, is not granted until the beneficiary pays the inheritance tax. The due date to pay inheritance tax in New Jersey is 8 months after the death of the individual whose estate will be passed on to the heir. Tax debt, if any, after the due date will be subject to interest.

State Gift Tax

New Jersey does not impose a separate gift tax.

——

 If you are looking to sell a house that has been through probate or is currently in probate please contact Scott at http://www.Scottybuys.com/probate there is no cost or obligation.

Technorati Tags: estate taxes, gift tax, inheritance tax, new jersey probate taxes

Under New Jersey Probate Law, when someone dies testate (has a will),that will will appoint an executor.  The job of the executor is very important and comes with numerous responsibilities.  These obligations include probating the will, liquidating assets (selling a home or jewelery), pay all encumbrances and taxes as well as take care of all other court duties.  The executor may hire a lawyer to help make the proper decisions, but let’s face it, it’s a tough job that not every one can handle or just isn’t willing to do so.

Once the executor is declared, the court or surrogate’s office are not responsible for making sure the will is probated properly or in a timely manner.  If you are not happy with the way the executor is handling their duties because they are not following the instruction set forth by the will,you can, under New Jersey Probate Law, have an attorney file a complaint in Superior Court.  This complaint is called the Complaint for Accounting.  The complaint for accounting is filed to request the removal of the current executor and asks the court to assign a new person as an administrator of the will.

Removal is not easy in any sense of the word.  The beneficiaries must be able to prove that serious wrongdoing has occurred before the court will rule to replace the executor.  Such acts as moving to slowly, refusing to give out information or just being uncooperative are not grounds for removal. In successful removals, the beneficiaries where able to convince the court that the executor was incapable of performing his/her duties, was unsuitable for the position or has become disqualified.

Incapable: Must prove that the executor has some mental or physical illness that will prevent them from successfully acting in the role of an executor.

Disqualified: This being the easiest to prove.  If the executor has committed a crime since being appointed and has gone to jail for the crime, then they are no longer eligible to be an executor.

Unsuitable: Because of the circumstantial evidence that must be interpreted, this is the most challenging to prove.  This involves either a conflict of interest or some form of serious misconduct.  Other misconduct, which may be grounds for removal must be fairly serious and actually damaging or threatening to damage the estate. Examples of such behavior might be:

• Being a Drunk
• Stealing from the estate
• Not filing an inventory or accounting
• Refusing to obey a court order
• Neglecting to perform duties as executor

In conclusion you must have great cause in order to pursue a removal of an executor.  Costs are high and the risk of alienating everyone is great.  Money can easily come between family, so please exhaust all your options first before considering an executor removal.

Technorati Tags: executor, new jersey estate, probate

 When inheriting a house in New Jersey through the probate process there are some taxes you'll have to pay.  The taxes that will be paid are called Capital Gains tax.  Before getting into the specific rules of capital gains when inheriting a property, let us go over what it is exactly.

From the New Jersey Department of the Treasury, Division of Taxation, a capital gain is the profit you realize when you sell or exchange property such as real estate or shares of stock.  If you are a New Jersey resident, all of your capital gains, except gains from the sale of exempt obligations, are subject to this State's income tax (http://www.state.nj.us/treasury/taxation/njit9.shtml).  

When an heir inherits a property, the IRS (Internal Revenue Service) determines their basis in the property on the date of the owners death.  A basis is the difference between the cash price and future price of the property.  The IRS will use the house's fair market value to determine what your capital gains are.  Lets compare an inherited property to one that you have purchased.

Your House:

Purchased For: 100k

Current Marekt Value: 150k

If you were to sell your house you would be profit a total of $50,000.  You would be taxed on this profit.

Inherited House:

Purchase For: 100k

Current Market Value upon Death of original owner: 135k  (this would be your new tax basis)

If you were to sell the house for 150k now, you would profit only $15,000 and that would be your taxable income.

Another item to consider is what the tax rate will be.  In New Jersey there are long-term capital gains and short-term capital gains.  If the house is sold within one year of obtaining ownership, then this is considered a short-term and are taxed at a rate of ordinary income (i.e. same tax rate that is used against income from a job).  This rate is generally higher then the rate of long-term capital gains taxes.  The rate of long-term capital gains taxes may be regulated by the fedral government and is different depending on your tax bracket.  Since 2003 the long-term capital gains tax is 15%, but only 5% for the lowest two brackets.

Be advised though that holding out for a year in order to pay less taxes may be more costly as maintenance, property taxes will ad up quickly.  Do your homework and make the best decision for your situation.

If you wish to sell an inherited house and don't want to go through the hassles of fixing it up in order to sell on the market, or just not being certain when it will sell send Scott from http://www.ScottyBuys.com/Probate and he can help you out.  There is no obligation or cost.

Technorati Tags: inherited house, new jersey capital gains tax, New Jersey Probate

Having to watch over a vacant home is a full time job and one that can get old really quick.  Most times when you inherit a house from a deceased relative
it is either in another town or even on the other side of the country. 
Have you ever been driving through a neighborhood that had a vacant
home?  It is usually very easy to spot, either by the unkempt lawn or
the news papers have piled up.  Even if some one is hired to mow the
lawn and pick up the papers, there are always signs and those signs
scream out to vandals and thieves that this house is vacant.  

There are steps you can take to best keep the house in order and in sellable condition. 
In the end getting the best possible price for the home is the goal,
but sometimes selling it quickly can save you a ton of money and
headaches.  Until the time comes when the house actually sells please
take the following actions in order to best protect yourself and the
vacant house.

1) Get Vacant Homeowners Insurance.  This is a MUST, as the regular
homeowners policy will most likely be dropped by the provider once the
home is vacant for 90 days.  This is not always true, but when there is
an accident or a claim, the policy will not cover what you think as it
assumes the house is occupied.  Call your insurance company and tell
them about the vacant house situation, not all companies will cover a
vacant house so finding one that will is paramount.  

2) You’ll need someone to look after the house.  Call a neighbor,
friend or relative that lives in the neighborhood to have them help
maintain the house.  They should go into the property about once every
week, it’s important to stay on a routine schedule in order to catch
possible hazards, water leaks or break-ins. Doing so will limit the
damage or even prevent it.  

3) Get an Alarm system.  This has two benefits, one it with prevent
break-ins and two your new vacant homeowners policy might give you a
discount for having one installed.  Not only that but it will give you
the peace of mind that the house is safe.

4) Do preventative maintenance by turning off water to the house and
drain the pipes to prevent them from freezing in the winter.  If you
can not drain the pipes then during winter months keep the house
temperature between 58 and 60 degrees.  Also have the walk ways,
driveways and front steps cleared of any snow or ice in the winter
months.  In the summer months have the lawn mowed, shrubs trimmed and
just keep the house generally looking good.  

Yes this is a lot of work, but can not be left undone.  Did you know
that if you are an executor of an estate, New Jersey Probate Law says you can be held liable for
accidents that occur on or in the vacant property?  If a pipe leaks and
nobody checks on the house for weeks at a time, the damage could be
more  then $100,000 and cause deadly mold to form.  Once a house
displays signs of mold it INSTANTLY becomes very hard to sell and
expensive for remediation. 

If you wish to sell the house now, contact Scott from http://www.ScottyBuys.com no obligations or cost.

Technorati Tags: insurance, New Jersey Probate, sell house in NJ probate, sell inherited house, sell vacant house, vacant house

Do You Need to Insure a Vacant House in Probate?

Absolutely!  It's really that simple, being protected against the unexpected is vitally important.  Under New Jersey Probate Law, the executor/administrator of a will can be held financially responsiblefor incidents that occur on a vacant property.  Just imagine the costof being sued because a child tripped on while playing in the unkeptyard, of the vacant home, and broke a wrist.  It can happen andinsurance is the only way to protect yourself while the house is stillunder your control as executor.

Vacant Home insurance isdifferent then the normal Homeowners Insurance you might have for yourcurrent house.  It is a unique protection placed on vacantbuildings/homes that are expected to be unoccupied for more then 90days.  The first thing that needs to be done is the cancellation of theexisting home insurance and then the vacant home policy can be put intoplace.  This vacant policy will be more expensive for a variety ofreasons, let me give you an example of why…

John and hisfamily recently moved out of there 2 bedroom, 1 bath house to a largerhome in order to better suit his growing family.  Unfortunately he hadyet to sell the old house and it has been sitting vacant for the past 2months.  As time went on John was unable to check on the house as oftenas he would have liked.  One day, about 3 weeks since he last to a lookat the old place, he was driving in the neighborhood and decided tocheck up on the unsold house.  As he walked into the front door he sawa large wet spot on the floor, noticed a terrible mildew smell and thewallpaper was pealing right off the walls because of all the moisture. What had happened?

The washer hose sprung a leak and had beendripping water for 3 weeks.  If John had still lived in the house, atworst, he would have come home from work 8 hours later to find a smallwet spot by the leaking hose and would have avoided massive damage. The claim would have been small, about $10,000 of water damage, butsince the house was vacant and there was nobody to discover the leakfor 3 weeks the water caused over $100,000 worth of damage. WOW!

Ifthe normal homeowners policy was somehow still in affect, the insurerwould probably only cover the first $10,000 of any claim in thissituation, that is why you must get a VACANT homeowners policy in placeas quick as possible.  You want to be protected.

Even though avacant homeowners policy is more expensive, that cost can be mitigatedby raising the deductible amount that you are willing to pay.  Adeductible of $5000 would save you a ton of money compared to one of$500.  

Liability Insurance Coverage is also extremelyimportant. Being away from the house can create a situation where youmay be found negligent or liable for damages in a court of law andsituations you did not foresee. The most common example of this, issomeone comes onto your property to deliver something, or for someother legal reason, and they are injured because you have not cut thegrass, shoveled the snow, or another reason related to the home beingunoccupied. A child wandering on your property and being hurt isanother common example. Liability coverage is very important andwithout it, as the executor of the estate, you are risking yourfamilies savings.

Yet another coverage option to look into iscontents coverage.  If there is anything valuable left behind in thehouse, that won't necessarily be covered by the vacant homeownersinsurance.  This depends on the policy so you must ask.

Also askif the policy covers for vandalism, many vacant homeower's policies donot. Vandalism is the most common claim for a home that is not beingoccupied by the primary family members.

Important Notes, If ahouse becomes vacant for a period of 90 days or greater the originalhomeowners policy may be dropped by the insurer at any time.  They get very nervous when a house is vacant.   

Ifyou have no plans on living in the house, you should attempt to sell itas quickly as possible to avoid problems.  If the house is in badcondition or you have attempted to sell it and failed you still haveoptions.  Contact Scott at www.ScottyBuys.com/Probate and he canpossibly help.  There is no risk or obligation.

A typical Vacant Homeowners policy over at www.vacanthomeinsurancenow.com looks like this…

**************************************
Coverage Offered:
H03 policy wording (all risk coverage on the dwelling / replacement cost coverage at the time of claim)
Named Perils coverage on the contents if any items are left behind in the home.

Liability Insurance included at $100,000 with legal defense costs:
Additional liability coverage of up to $1,000,000 available on the vacant dwelling.
Legal defense costs included in the liability coverage

Deductible: Minimum deductible amount of USD 1,000 per occurrence.

Dwelling limits: Coverage limit of up to $1,250,000 per dwelling if requested.

Other structures coverage: Coverage equal to 10% of the dwelling limit.

ContentsLimits: 10% of the dwelling limit up to $25,000. More contents coverageavailable upon request if items are remaining in the unoccupied home.

Earthquake:
Coverage limit of $1,000,000 per event.
Aggregate annual limit of $2,000,000 per master policy.
(Not available in all locations)

Flood:
Coverage limit of $1,000,000 per event.
Aggregate annual limit of $5,000,000 per master policy.
(Not available in all locations)

Windstorm or Hail:
Subject to a deductible equal to 2% of the dwelling coverage limit.
Dwellings located in high risk counties or cities are subject to a deductible equal to 5% of the dwelling coverage limit.

Territorial Limits: Home can be insured in the U.S., Canada, U.K. EU, Australia and in 50 other countries if approved insurers.

Alarm system: May be required by some insurance companies

**************************************

*As always articles on this site are informational only, any legalmatters must be brought to an attorney who specializes in the field*

First thing is don’t panic!  In New Jersey there are several places outside of the home where you can find a will.  Many times
after a person has passed, the heirs have trouble finding the will. 
What complicates matters is that there might not even be one so how do
you know where to start looking or what will happen.  Turning the house
upside down is usually the first option for finding the will and that
is like finding a needle in a hay stack, meaning impossible.  Here are
some great tips for possibly uncovering that will…

• If
  you happen to have a copy of the will (which would not be valid because
  you need the original), check to see if there are any attorneys named
  on the document.  The reason is that many people don’t have a safe
  place to store a will so they keep it with the attorney that helped
  them create it. 
• Have no copy of the will?  Try checking
  for a safety deposit box at their bank.  Find bank statements to get
  information on which banks they have accounts in and you may get
  lucky.  This is where my parents keep their wills so in all likely hood
  this is the spot as many people keep the existence of a safety deposit
  box a secret.
• Another place to check that many people don’t
  realize is the decedent’s county’s clerks office.  If the person lived
  in different places you may have to check with each clerks office.

Those
are the “Official Places” that one might keep their Will, if those
places fail to turn anything up its time to start getting creative.

• If
  the decedent last lived in a nursing home or assisted living home, then
  you need to contact them and ask about how they handle personal
  property left behind.  Many people like to keep their wills close so
  they may have brought it with them to the home. 
• Many
  times a person might keep their will in a safe in the house or in their
  office.  Try searching through all office papers and search for folders
  or files that might not be marked or are hidden behind a drawer in a
  next.  I’ve even heard of secret compartments within a desk the held
  the will.  Check everywhere!
• Lastly ask all children and relatives of the decedents.  You never know where it might turn up.

Now
if you truly can not find the will, New Jersey Probate law will dictate the distribution of the assets.  When a person dies without a will they are said to have died Intestate (without a will).  Below you will find an outline of how property is distributed according to New Jersey Probate.  (taken from New Jersey State website…http://www.judiciary.state.nj.us/will.htm#INTESTATE)

If You Die Leaving: Wife or Husband and Child or Children (also of Survivor) Or their Descendants

• Wife or Husband receives $50,000 plus one-half of balance
• Child or Children receive one-half of balance divided equally
• Grandchildren take their deceased parent’s share unless all children be deceased, then all grandchildren share equally.
• Wife or Husband and Child or Children (one or more not Child of Survivor) or their Descendants
• Wife or Husband receives one-half
• Child receives one-half or Children receive one-half divided equally
• Grandchildren take their deceased parent’s share unless all children be deceased, then all grandchildren share equally.

If You Die Leaving: Wife or Husband but No Children or Their Descendants and

(a) If your Mother or Father survives

• Wife or Husband receives $50,000 plus one-half of balance
• Mother and Father, or survivor, receives other one-half of balance

(b) If no Parent survives

• Wife or Husband receives all.

If You Die Leaving: Child or Children but No Wife or Husband

• Child or Children receive all divided equally
• Grandchildren take their deceased parent’s share unless all children be deceased, then all grandchildren share equally.

If You Die Leaving: No Wife or Husband and No Children or their Descendants and

(a) If your Mother or Father survives

• Mother and Father, or survivor, receives all

(b) If No Parent survives

• Brothers and Sisters receive all divided equally
• Nieces
  and Nephews take their deceased parent’s share unless all brothers and
  sisters be deceased, then all Nieces and Nephews share equally.

More Remote Cases (under this classification) are Not Covered Here

However,
the State of New Jersey takes your property if you leave no wife or
husband; child or its descendants; parent; brother or sister of their
descendants; grandparent; or uncle or aunt or their children; or their
grandchildren.

NOTE: Any person who fails to survive the
decedent by 120 hours is deemed to have predeceased the decedent for
purposes in intestate succession.

 If you are looking to sell a house that has been through probate or is currently in probate please contact Scott at Scottybuys.com/probate

The assets in a New Jersey Probate case is usually broken up into two classes, real and personal property.  Real property consistes of mainly real estate, or houses, vacant land or commercial property.  While personal property is pretty much everything else, such as bank accounts, the family car or collection of rare stamps.  The distribution of the assets can be a contentious ordeal and can drag on for years if someone contests.  

The last will and testimate would normally contain the guidelines for what happens to the estate's personal property.  It is very common for those benefiting under the will to inherit items of particular sentimental or real value, while the remaining items be sold at auction or to a third party such as a consignment shop or an investor.  Any contents not sold and are of little value can be disposed of.

A house that passes through probate in New Jersey can be sold with the approval of the court before the probate process has been completed.  Sometimes this is needed in order to pay off taxes or liens on the property.  The house can also be sold if nobody is interested in taking care of the house and would rather divide the proceeds up between the beneficiaries.   Some situations can arise where there are multiple heirs inline to inherit the house.  If one of them wants to stay and live in the house and the other(s) would prefer to sell off the property a conflict can occur.  This however can be avoided with a properly written will the specifically dictates what should happen with the house and directs the beneficiaries how to handle the situation.  

To complicate the matter, sometimes the house will not have to go through the probate property.  If the house was jointly owned by a couple, in most circumstances, the surviving spous will become the sole owner.  This is called a tenancy by the Entirety.  Another type of ownership can supersede a will and that is a Joint Tenancy with rights of survivorship.  Sometimes an elderly parent will create a joint tenancy with a child of their family home.  This is done to avoid the probate process and allow ownership of the house to pass immediately to the child upon death.

In most cases the best course of action is to sell the house.  It helps avoid family battles and can be an easy way to put thousands of dollars into your pocket.  If you are looking to sell a house that has been through probate or is currently in probate please contact Scott at Scottybuys.com/probate

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