When someone dies without a will, the local probate court typically appoints an administrator to bring the affairs of the deceased to closure. Once debts are paid, the state laws of intestacy dictate the distribution of assets, Often courts require the administrator to obtain a type of fiduciary bond known as an administrator bond.
Appointment and Duties
Absent a will and its designated executor, courts usually appoint a relative to serve as the estate’s administrator. For example, in New Jersey, in accordance with the statute of descent and distribution, heirs are sought in this order:
- Spouse, civil union partner or domestic partner
- Adult children of the decedent
- Guardian of minor issue first entitled, if no surviving spouse or adult children
- Decedent’s parents
- Brothers and sisters
- Grandparents
- Aunts and uncles
- Stepchildren
- Strangers, creditors after 40 days or others
In some states, such as New Jersey and New York, probate court is referred to as Surrogate’s Court. There, as in most states, it’s common for the court to require a type of fiduciary bond, referred to as an administrator’s bond, before the designated administrator can begin to handle the affairs of the estate. As attorney Daniel Antonelli explains:
An Administrator’s bond is a type of insurance policy that guarantees the proper administration of an estate. In Surrogate’s Court, an Administrator is usually required to post a bond before he or she qualifies to receive the appointment (also known as being granted Letters of Administration)….Bonds protect estate beneficiaries and creditors from the negligent and intentional acts of fiduciaries that cause harm to the estate.
Further information about administrator bonds, as well as assistance to quickly obtain administrator bonds for probate and surrogate courts in every state is provided by Colonial Surety Company: Administrator Bonds HERE.
Once officially appointed in court, administrators are likely to find themselves quite busy with responsibilities including: inventorying assets, such as real estate, financial accounts and personal property; notifying creditors (so they can file claims against the estate for debts owed); settling debts, including taxes; and, finally, distributing remaining assets in accordance with state intestacy laws. Before the court officially closes the estate, administrators must: “Prepare a final accounting of the estate’s financial transactions for approval by the court and distribution to heirs.” Sometimes administrators find themselves overwhelmed by their duties, especially if they lack experience or have other significant responsibilities. It’s helpful to know that probate or fiduciary attorneys are available to assist them to “perform their duties in a way that is legally and morally appropriate.”
Good To Know: Probate Court?
Probate court provides a public process for “validating a deceased person’s will if one exists and administering their estate. The primary goal is to ensure that the deceased person’s debts are settled, and their assets are distributed in accordance with their wishes or state law.” Ideally, organization efforts within families prior to the death of a loved one will allow for some of the assets to bypass the probate process. Depending on state probate law, assets that may bypass probate include:
- Retirement accounts for which a beneficiary was named
- Life insurance proceeds
- Pension plan distributions
- Property held in a living trust
- Funds in a payable-on-death bank account
- Securities registered in transfer-on-death form
- U.S. savings bonds with a named beneficiary or co-owner
- Wages, salary, or commissions (up to a certain amount) owed to the deceased person
- Vehicles that go to immediate family members under state law
- Household goods and other items that go to immediate family members under state law (in some states).
In addition to supervising the process of closing out the affairs of the deceased, probate and surrogate courts typically also handle other important family matters. For example, functions of the Surrogate’s Court in New Jersey include: establishing guardianships for minors or incapacitated adults; the adjudication of adoption matters; management of the fund of minors; public records of probated estates; and wedding services.
Probate or Fiduciary Attorney?
When families put their trust in you, there’s no time to waste. With a few clicks on The Partnership Account® for Attorneys, lawyers everywhere around the country can quickly obtain needed fiduciary bonds. Just select the specific bond, enter payment (or send it to clients for completion). Then download, e-file or print the bond. Our fiduciary bonds include: administrator, estate, executor, guardian, personal representative, probate, surrogate, trustee, conservator and the list goes on. Easy, speedy fiduciary bonds are always at your fingertips, from your own private dashboard, via our complimentary service for probate and fiduciary attorneys:
The Partnership Account® for Attorneys
Colonial Surety is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed, and licensed for business everywhere in the USA. Our customers have awarded us a 4.8 Trustpilot score.