Transferring a Motor Vehicle After Owner’s Death (Part 1)
It’s a question that comes up often and early when discussing how to administer estates after someone dies. In part it is because of the difficulties many of us have had at times figuring out New Jersey’s Motor Vehicle Services process. The question is “How exactly do I dispose of a motor vehicle when the owner dies? The first step is to locate the title to the vehicle. Without it you can’t transfer title at all. If you can’t find the title then you’ll need to get replacement title from NJMVS. But that requires the Owner - who is deceased - to request it. So, what to do? If only the deceased owner’s name is listed on the title then the vehicle is part of the probate estate. In order to obtain replacement title and then transfer title some paperwork will need to be filed with the Surrogate first. The exact procedure depends on whether there is a Last Will or not and the size of the estate. If there is a will, the executor named in it must present the document to the Surrogate of the county where the person lived at the time of their death. With the surrogate certificate showing the appointment, the executor can then sign over title
How Do I Access a Deceased Owner’s Account? Part 5
In the past 4 blog posts, I have been discussing how to access a deceased owner’s bank or brokerage account. In part it depends on whether the account is a probate asset - controlled by a will or state intestacy laws when there is no will - or a non-probate asset. But after that determination is made there is still a hurdle to clear because of the State’s automatic lien after death. By law the State has a lien on all accounts in New Jersey banks and financial institutions and on stock in New Jersey companies to insure it will receive the inheritance tax it is owed. The lien is released by obtaining a tax waiver which the State issues when it is satisfied that the correct amount of tax has been paid. Until then (the tax is due 8 months after death and if unpaid accrues interest at 10% per year) 50% of the account may be withdrawn according to something called a blanket waiver. Withdrawing the rest must wait until the tax waiver process is completed. When there is no inheritance tax due, the State does have an abbreviated process to the obtain the waiver without the need to file an inheritance tax return. A self
How Do I Access a Deceased Owner’s Account? Part 4
How Do I Access a Deceased Owner’s Account? Part 3 In last week’s blog post, I explained the process of accessing a deceased owner’s account both when there is a Will and when there is not. But as I said last week, once that is accomplished the financial institution may still not release all the funds without one additional step. That is because of something called a tax waiver which relates to the payment of New Jersey’s inheritance tax. I’ve written about the tax waiver in past posts but I will summarize here again. While New Jersey eliminated its estate tax back in 2018 it still has an inheritance tax which is based on the relationship of the heirs to the person who died. Children, grandchildren and spouse are exempt from the tax but other more distant relatives and non-relatives are subject to the tax. Although there are certain assets that are exempt from inheritance tax, such as life insurance payable to a named beneficiary (even if that beneficiary is in a category which would otherwise cause there to be inheritance tax), contrary to common belief the tax is not limited to assets that pass by way of the will - what are called probate assets. Assets
How Do I Access a Deceased Owner’s Account? Part 3
In my blog posts the past 2 weeks I have addressed this commonly asked question. I explained the distinction between probate assets - ones controlled by a will or the intestacy laws - and non-probate assets which are not. Generally, an executor or administrator must be appointed before an account can be accessed. On the other hand, if the account has a joint owner with right of survivorship or beneficiary on death, that person (or persons if more than one co-owner or beneficiary exists) can immediately access the account by presenting a death certificate. I discussed last week that this person can unfreeze and become the owner of the account, but I alluded to a potential holdup. That is because of something called the New Jersey tax waiver system. This process is designed to protect the NewJersey’s interest in insuring that its inheritance tax is paid. Inheritance tax is payable as a result of and after one’s death. The tax is determined not by the size of the deceased person’s estate (that would be an estate tax which New Jersey eliminated in 2018), but instead by the relationship of the heirs to the person who died. Only a small percentage of estates actually owe inheritance tax. The reason is because
How Do I Access a Deceased Owner’s Account? Part 2
Last week I addressed a question we get frequently in our office - how to access the financial account of a loved one who has died. The answer is not the same for each account. We must first determine whether the account is a probate or non-probate asset, meaning “is it controlled by the will or if there is no will then by the intestacy laws”. In both cases one must first file papers with the county Surrogate’s office. This is part of what is known as the estate administration. If the account is titled in the deceased owner’s name alone with no co-owners and no beneficiary payable on death, then the estate administration process must be begun by seeking appointment either as an executor (if a will exists that names that person) or an administrator if there is no will. In that case New Jersey law decides who has the right to be appointed beginning first with the spouse and then children. Once the Surrogate issues Letters Testamentary (there being a validly executed will) or Letters of Administration (in the absence of a validly executed will), the person appointed may present those papers to the financial institution to then access the funds. Once obtained, the executor/administrator must
How Do I Access a Deceased Owner’s Account? (Part 1)
It is a common question we get when someone calls our office after a family member dies. “Can I still access their account since I am agent under power of attorney?” or “Can I use the account to pay for the funeral and other bills that need to be paid?” These questions don’t lend themselves to easy “yes” or “no” responses. The answers depend on a number of different factors so that in some cases funds from the account can be tapped into immediately while in other cases there are steps that must be taken to “free up” the account. When someone dies, financial institutions will generally put a hold or “freeze” on the account once they learn of the owner’s passing (often when Social Security is notified and direct deposits into an account are stopped). In part, that’s because it must be determined who now has the right to those funds. It is no longer the owner who died and so it also is no longer the agent under power of attorney for that owner. By law, the power of attorney no longer has effect. So, who can then step in? The answer depends on whether the account becomes a probate asset, falling under the estate administration process. In that