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Small Estate Limits for New Jersey

There is no Affidavit procedure available in New Jersey. There is a summary probate procedure, but only if there's no valid Will:

1. If the value of all property is less than $50,000, and the surviving spouse or registered domestic partner is entitled to all of it.

N.J. Stat. Ann. 3B:10-3.

2. If the value of all property is less than $20,000, and there is no surviving spouse or registered domestic partner, one heir, with the consent of the others, can file an Affidavit with the court and receive all of the assets.

N.J. Stat. Ann. 3B:10-4.

What's Included in valuing the estate?

Not everything a person owns is part of their "Estate" for probate purposes.

If you're wrapping up the estate of a New Jersey resident who died with an estate that's worth less than a certain dollar amount, you won't have to go through a formal probate court proceeding. 

It doesn't matter whether or not the deceased person left a will; what matters is the value of the assets left behind. If the estate's value is under the "small estates" limit in New Jersey, you can take advantage of a simplified probate procedure, often called a "summary probate." Instead of having a court hearing in front of a judge, you may need only to file a simple form or two and wait for a certain amount of time before distributing the assets.

In some states, it can be even easier: Inheritors can use a simple affidavit to claim assets. (An affidavit is a statement you sign in front of a notary, swearing something is true.) If you live in one of those states, you just have to wait a required period of time, then sign a simple, sworn statement that no probate proceeding is happening in your state and that you are the person entitled to inherit a particular asset--a bank account, for example. 

Adding it up, what's in, what's not

When you are trying to determine whether or not an estate's value is below the New Jersey small estates limit, the first thing to do is make a list of the assets. A simple spreadsheet or list will do.

Not everything a person owns counts, though.

Include only the things that pass to heirs and beneficiaries by will or, if there's no will, by New Jersey intestacy laws, which determine who inherits if there is no will.

Don't count:

  • assets that are held in joint tenancy,
  • retirement plans,
  • payable-on-death (POD) bank accounts,
  • real estate transferred by a transfer-on-death deed, or
  • transfer-on-death brokerage accounts.

These assets don't count towards the small estate limit because they pass to the named beneficiaries regardless of what a will (or state intestacy law) says. If a person had a life insurance policy with a named beneficiary, the insurance proceeds won't count either.

Loans on the property?

Some states also don't count the amount of money owed on a car, or a house, while others count the fair market value of an asset, even it is subject to a loan or a mortgage.

For example, say Donald died in New Jersey and owned the following assets:

  • A checking account with $2,345
  • A savings account with $2,567
  • A car with a blue book value of $6,500 (and no loan)
  • An IRA with $32,000, naming his son and daughter as beneficiaries
  • A life insurance policy worth $15,000, naming his son and daughter as beneficiaries

To figure out whether Donald is above or below New Jersey's small estate limit, only the bank accounts and car would be counted, for a total of $11,412.

His IRA and the life insurance proceeds aren't counted towards the limit because they will go to his beneficiaries directly. The value of the car is included because he doesn't owe money on it.

That means the value of Donald's estate is under the New Jersey small estates limit. His son and daughter, who inherit his assets under New Jersey's intestacy laws because Donald had no will, would follow the small estates procedure.

New Jersey Options for Expedited Probate

there are two options for faster probate procedures available for an estate in New Jersey:

  • Small Estate Administration
  • Summary Administration

The following citations provide more information about these procedures:

  • Small Estate Administration
    • New Jersey Revised Statutes § 3B:10-3(w/ surviving spouse) , 3B:10-4 (no surviving spouse)
    • New Jersey Probate Forms, Small Estate Affidavit (Form 3B:10-3, Form 3B:10-4)
  • Summary Administration
    • New Jersey Revised Statutes § 3B:14-8
    • New Jersey Probate Forms, Summary Administration Petition (Form 3B:14-8)

Small Estate Administration

Small Estate Administration is a simplified probate procedure that is available for estates with a value of $50,000 or less (if the decedent is survived by a spouse or domestic partner) or $20,000 or less (if the decedent is not survived by a spouse or domestic partner).

To use Small Estate Administration, the following steps must be taken:

  1. File an affidavit with the Surrogate's Court in the county where the decedent lived.
  2. Pay the required filing fee.
  3. Publish a notice to creditors in a newspaper in the county where the decedent lived.
  4. Wait 30 days after the notice is published.
  5. Distribute the estate to the heirs.

Summary Administration

Summary Administration is a simplified probate procedure that is available for estates with a value of $100,000 or less.

To use Summary Administration, the following steps must be taken:

  1. File a petition with the Surrogate's Court in the county where the decedent lived.
  2. Pay the required filing fee.
  3. Serve the petition on all interested parties.
  4. Hold a hearing on the petition.
  5. Obtain an order from the court approving the distribution of the estate.

The simpler procedures avoid the following steps in the regular probate process:

  • The need for a formal hearing before a judge.
  • The need to publish a notice to creditors.
  • The need to obtain a bond from the executor or administrator.

The simpler procedures can be a great way to save time and money if your estate qualifies. However, it is important to consult with an attorney to make sure that you are following the correct procedures and to avoid any potential problems.


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Jurisdictional relevance: ST

There are versions of this article for each State.