Stapleton Elder Law

When a Parent Dies Suddenly and There’s No Will, What Happens?

There are some processes that provide a framework for heirs who must deal with grief and legal issues at the same time.

It’s hard enough when someone you love dies unexpectedly, but when they die without a will and their estate includes real property and significant debt, you are facing a double burden. According to a post on nj.com, “Who is responsible if dad dies with no will?” things can get complicated, but an estate planning attorney can help. This following provides an example, but it by no means covers every kind of situation like this.

Had there been a will, the court would appoint a person to be an executor.  However, in the absence of a will, the court will appoint an administrator.

Bonds are typically waived for executors, but many times administrators must post a bond. The bond amount is derived from the value of the estate. If you’re appointed as an executor (or as an administrator of your father’s estate), it doesn’t make you personally responsible for any of his unpaid debts or obligations. You can’t be forced to take on the burdens of administration of an estate, merely because you are an heir.

However, once you agree to serve and you’re appointed as an executor or an administrator by the court, you can’t just change your mind and walk away. You’ll need to have the court’s okay to resign, and then a successor fiduciary would need to be appointed.

When there’s real estate involved and you are an heir of the estate, when the foreclosure of the mortgage is started, the heirs will likely be named in the proceedings—regardless of whether you’re an executor or an administrator. But you don’t necessarily have to respond to the pleadings.

If no family member is willing to serve as a fiduciary to administer the father's estate, and with assets in the estate to be administered and debts to be paid, the court most likely would appoint an attorney to serve in that capacity. In New Jersey, the statute says creditors can also apply for the job. The administrator is paid from the sale of the assets.

In this kind of situation, if the father was single at the time of death, had only three children and no will, each sibling would be entitled to a third of the estate. They would all be eligible to be appointed and act jointly as administrators of the estate, with no impact on their share of the inheritance.

Without a will, court costs and other expenses add up quickly. A qualified estate planning attorney can create a will and other important legal documents that will avoid the stress and costs to loved ones.

Reference: nj.com (February 23, 2017) “Who is responsible if dad dies with no will?”

To ensure your estate plan is sound and meets your goals and concerns, please visit our website.

 

No Kids? You Still Need an Estate Plan

 

Many people think that not having children means that you don't need to have an estate plan. But in most cases, having an estate plan becomes even more important in the absence of children. Unless you wish to give your assets over to the state, you'll want an estate plan that will carry out your wishes.

When most people think of wills and estate plans, they usually think about the primary function of distributing assets to children. The natural next thought is, if they have no children, then they don't need a will. But estate plans, and especially wills, actually serve a number of important purposes, only one of which is conveying assets to children.

As U.S. News & World Report points out in, "No Kids? You Still Need an Estate Plan," people without children need, at the very least, to have a will if they want to have a say in who gets their assets after they pass away.

People who pass away without a will are said to have died intestate. Every state has a law that determines who gets the assets of people who die intestate. The laws all operate similarly, in that the assets are given to the person's closest living relatives.

Under such law, those who have a spouse or children will have their assets given to that spouse or the children. If however you have no spouse or children, then your assets will be distributed to other relatives, depending on who is closest in line. Ultimately, if you have no living relatives that can be found, then the assets will be claimed by the government. The term for this is escheat.

So, the primary purpose of estate planning for most people is avoiding the laws of intestacy and deciding for yourself who will inherit from you.

Do not let the fact that you do not have children deter you from getting an estate plan. Contact a qualified estate planning attorney to help you design a custom plan for your unique circumstances. To learn more, please visit our website. 

Reference: U.S. News & World Report (October 14, 2015) "No Kids? You Still Need an Estate Plan"

$788,000 Estate Left Unclaimed

  Thus far, many people have attempted to establish a link – none have been successful. If no one claims the inheritance in 30 years, the money goes to the British crown.

No will or other estate planning documents could be found for Kathleen Hilda Ryan, who passed away in Greenwhich, United Kingdom in 2013 with an estate valued at $788,000. She had inherited the bulk of it from her sister, Joan.

Kathleen had no children of her own and no living siblings.

In fact, as far as anyone knows, she had no living relatives at all. However, it is believed that her aunt, Lizzie, emigrated from Ireland to New York at some point.

Thus, the search is on for what happened to Lizzie and whether she had any children.

If any of Lizzie's children are found, then they would inherit the estate. If no one is found in 30 years, then the estate will become the property of the British Crown.

Many people have submitted claims to being the descendants of Lizzie, but thus far no one has been able to prove it.

Irish Central reported the story in an article titled "Is your ancestor Lizzie Ryan from Westmeath? You could inherit $788,000."

In the United States, the law is basically the same with one big exception. If no relative is found the estate does not go to the British Crown, but rather it passes to the state in which the estate property is located.

Thus, unless you want your estate to become the property of the state government, it is very important that you have some kind of estate plan, especially if you do not have any close relatives who can be easily found.

Of course, if you are descended from a Lizzie Ryan who emigrated from Ireland to New York in the mid-1900s, you might want to stake a claim to the estate of Kathleen Hilda Ryan while you can.

Reference: Irish Central (May 16, 2015) "Is your ancestor Lizzie Ryan from Westmeath? You could inherit $788,000."

Please visit our website to learn more about establishing or updating your estate plan. 

Infant's Inheritance Disclaimer Blocked

If someone does not wish to receive a specific inheritance, they can disclaim it. However, what happens if the person is a minor? It is up to the parents to disclaim the inheritance on the minor's behalf. Recently, a Brooklyn judge rejected one parent's attempt to do that.

Sharon Lindsay passed away with approximately $6M in assets to be divided. Because she did not have a will, under New York law her assets were to be divided between her husband, son and daughter. However, the children's portion was liable for $200,000 in New York estate taxes.

In an effort to avoid those taxes, the son and daughter disclaimed the inheritance. That would have given their share of the inheritance to their father. It would not be subject to the estate tax because of New York's spousal inheritance.

However, the flaw in their plan was that the daughter, Kimberly Friedman, had an infant child who stood to inherit her mother's share under New York law. Friedman attempted to disclaim the infant's share. Nevertheless, a Brooklyn judge disallowed the disclaimer.

The infant will inherit a share of Lindsay's estate and will have to pay state estate taxes.

The Brooklyn Daily Eagle has more on the story in "Brooklyn judge blocks heir's attempt to avoid N.Y. tax on $6M estate."

The judge reasoned that it was not in the infant's best interests to allow the disclaimer. According to the judge, the infant was better off receiving the inheritance subject to the estate tax than possibly never receiving it at all. The problem: there was no agreement between the children and their father that they would someday inherit the estate through him.

This case highlights the importance of estate planning. Lindsay had not done any estate planning and it is possible the entire issue could have been avoided if she had an estate plan.

Do not delay what is your personal responsibility. Meet with an experienced estate planning attorney to get your legal house in order.

Reference: Brooklyn Daily Eagle (February 20, 2015) "Brooklyn judge blocks heir's attempt to avoid N.Y. tax on $6M estate.

Please visit our website to learn more about estate planning.