Losing a loved one is never easy, and the probate process can make things even more challenging. It’s during this process that the court system gets involved in overseeing how an estate is distributed according to various New Jersey state laws.
Because the New Jersey probate process can take several months, and even extend beyond a year, you may find that you need access to the funds you are due to receive in an inheritance sooner. This is where inheritance funding comes in. To learn more or apply for an inheritance advance, contact Rockpoint Probate Funding at (888) 263-8588.
What Exactly Is Probate?
The legal field has its own set of terminology, including the term probate, which literally means to prove. In other words, probate is the process of proving the validity of a will. If the deceased did not leave a will, then they are said to have died “intestate,” and New Jersey’s laws of intestate success apply to the probate process.
During probate, the court will supervise the process of administering and distributing the deceased person’s estate. This includes both transferring assets like real estate, bank accounts, and personal property, as well as settling debts.
While each state, including New Jersey, has its own set of laws regarding probate, the process remains similar across all 50 states.
When Can Probate Be Avoided in New Jersey?
The lengthy and complex probate process makes many people question whether it can be avoided. Probate is typically required for estates over a certain value, meaning that smaller estates may be able to skip the process. Further, with careful estate planning, it is also possible to avoid having certain assets go through probate.
Someone looking to avoid probate can consider the following paths:
- File a Small Estate Affidavit: When the value of an estate, after considering certain fees and allowances, is below $50,000 if there is a surviving spouse or $20,000 if there are other family members but no surviving spouse, the estate can skip New Jersey probate.
- Convert assets into no-probate assets: Non-probate assets are assets that do not have to go through probate. Instead, they transfer directly to the beneficiary upon death without the courts getting involved. These assets include a revocable living trust, pay-on-death accounts and deeds, and property owned as joint property with the right of survivorship.
The reason these assets can avoid the New Jersey probate process is that ownership and beneficiary instructions were clearly provided for before death, whereas a will still must be verified.
What If There Is No Will?
It’s common for people to wonder how the probate process works when there is no will. After all, how can you prove a will if there isn’t one?
It’s important to realize that probate can still occur even if the deceased person did not have a will. Instead of proving the contents of the will, the probate court will distribute the person’s assets according to New Jersey’s intestacy laws.
The probate process works similarly when there is no will versus when there is a will. The key difference is that the courts take a more uniform approach to distributing assets according to an intestate succession formula. The closest relatives will generally inherit all of the assets. Close relatives include spouses, children, other descendants, parents, and siblings.
At the top of the inheritance hierarchy in New Jersey is the surviving spouse, though the exact distribution varies if there are also children from the marriage.
How Does the Probate Process Work in New Jersey?
Whether or not a will exists, the steps in the probate process are nearly identical.
Here’s a brief overview of what you can expect to occur during New Jersey probate:
- File the will and a petition to open probate. The first step is filing the will with the probate court and petitioning the court to begin probate. This can occur on the 11th day from the date of the person’s death.
- Appoint an executor (or administrator). The court can appoint an executor if one isn’t specified in the will. If there is no will, the court will appoint an administrator. Executor compensation can be waived or will be based on the reasonable value of services.
- Issue Letters Testamentary (or Letters of Administration). After the appointment of an executor or administrator, documents need to be drafted to grant this person legal authority to manage and distribute the estate.
- Notify interested parties. This step involves giving notice to heirs, beneficiaries, and creditors of probate proceedings.
- Inventory and appraise the estate’s assets. Next comes taking stock of what’s in the estate and assigning a monetary value to each asset.
- Pay debts and taxes. Before anyone can receive a payout, the financial obligations of the estate must be identified and settled. Note that New Jersey no longer requires payment of an estate tax, regardless of the size of the estate.
- Distribute assets. Once all the estate’s debts have been settled and the creditors are paid, the assets from the estate can be distributed to the rightful beneficiaries.
- Close the estate. All of the transactions will be documented in detail as a final accounting. When the court approves this final accounting, the court issues an order closing the estate. This officially ends probate.
If the will is contested for validity, fraud, or undue influence, a formal legal challenge may be initiated, which will inevitably extend the probate process.
Understanding Inheritance Advances
An inheritance advance is a financial option that allows heirs to access a portion of their expected inheritance before the probate process is finalized. This can be particularly beneficial for those who face immediate financial obligations, such as medical bills or housing expenses, that can’t wait for the lengthy probate process to conclude. It works by providing funds based on the anticipated value of the inheritance, thus alleviating financial stress during a difficult time.
Unlike traditional loans, inheritance advances do not require credit checks or repayments in the event that the probate process does not end favorably. This means that beneficiaries can obtain cash without incurring debt, which can be a significant relief as legal proceedings unfold. Understanding the mechanics behind inheritance advances can empower heirs with options they might not have considered following a loved one’s passing.
The Benefits of Inheritance Advancements
The primary advantage of an inheritance advance is liquidity; it provides beneficiaries with immediate access to cash that can be used for pressing financial needs. Whether it’s to cover funeral expenses, debts, or other unexpected financial burdens, this type of advance can serve as a crucial lifeline. Without requiring any repayments, borrowers can focus on their probate situation without added financial pressure.
Furthermore, inheritance advances can serve as an opportunity to invest or secure assets during a time of potential volatility in the market. Some beneficiaries choose to use these funds to seize investment opportunities that may arise, thus potentially increasing the overall value of their inheritance in the long run. By understanding these benefits, heirs can make more informed decisions during a challenging period.
Eligibility for Inheritance Advances
Eligibility for inheritance advances generally depends on the value of the estate and the specific terms set by the funding company. Since the advance is based on the expected inheritance, it’s crucial for beneficiaries to provide documentation regarding the value and status of the estate. This includes any relevant details about the probate case and an inventory of all assets.
How to Choose a Probate Funding Company
Choosing a probate funding company requires careful consideration of several factors, such as the terms of the advance, fees associated, and the company’s reputation. Beneficiaries should seek companies that offer transparency in their policies, ensuring they understand how interest rates and repayment structures work. A good practice is to read reviews and seek recommendations from others who have gone through similar experiences.
How To Get Money From an Inheritance in Advance
If you find that you need money from an inheritance sooner than the probate process allows, you can apply for an inheritance advance. This will give you a percentage of your due inheritance immediately so that you no longer have to wait.
The benefits of an inheritance advance include being able to pay bills, avoiding accumulating debt, and having cash available to take advantage of lucrative investment opportunities. Further, there are no credit checks, and you don’t have to pay anything back if you don’t prevail in the probate process.
You can begin the application process to determine eligibility by contacting Rockpoint Probate Funding at (888) 263-8588.
