Estate Settlement
Dec 04, 2024
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It's a surprising but true statistic: approximately 2/3rds of Americans don't have a will in place.
When someone dies without a will in New York, they have been considered to pass away intestate. In this situation, no one has control over the deceased person's property, which can create complexities when settling the estate.
Fortunately, New York has a provision for such a situation governed by intestate succession laws.
The provisions ensure the deceased person's property goes to the closest living relatives, with the top priority being the spouse and children.
Let's take a closer look at what happens to a deceased persons estate when they pass away without a will in New York.
Intestate succession is the legal process that takes place when a person dies, and the deceased did not leave behind a will or an estate plan behind.
In New York, the role of determining who gets what is given to the court which is governed by the laws of intestacy in New York State (Chapter 17B-4-1.1).
The law states that if you die without a will, your assets will be distributed based on your marital status, children, and other surviving family members. The following table summarizes how the division of assets occurs:
Family Relationship | Intestate Share |
---|---|
Spouse only (no children) | All to the spouse |
Children only (no spouse) | All to the children and issue of any predeceased child |
Spouse and children | Spouse gets $50,000 plus half of the remaining estate; children share the other half |
Parents only (no spouse, children) | All to the surviving parent or parents |
Siblings (no spouse, children, or parents) | All to the siblings or children of any predeceased siblings |
No spouse, children, parents, or siblings | Half to paternal grandparents or if both are deceased, to their children (aunts and uncles) or children of predeceased aunts and uncles (first cousins). The other half goes to maternal relatives in the same manner. If there is no one surviving on either the paternal or maternal side, the entire estate goes to the other side |
No spouse, children, parents, siblings, or grandparents/aunts/uncles/cousins | Half to the children of predeceased first cousins on the paternal side and half to children of predeceased first cousins on the maternal side. If there are no survivors on one side, the whole estate passes to the other side |
Let's take a case wherein - Bob, who died intestate after a car accident. His entire estate was estimated to be $250,000. Bob was married to Mary and had three children: Alice, Ted, and Rita (Deceased).
As per New York intestate laws, Mary inherits the first $50,000. The remaining balance, $200,000, is then divided into two. Mary again receives half of the $200,000—which is $100,000. Lastly, Alice and Ted divide the remaining $100,000 because Rita died earlier and had no children to receive her portion.
In New York, cohabiting partners do not have the same standing as legally married couples. Unless the cohabiting partner is named in a will, they rarely inherit assets in intestate.
However, if you have children/minor children under special circumstances, the distribution will be as follows:
When a deceased person lacks a valid will, their assets require the intervention of the court for administration and distribution – this is known as the probate process. For intestate estates, the procedure involves:
Without a will, the court needs to appoint an administrator. This individual might be a chosen family member or, as in New York, a County Public Administrator.
Distribution in intestate situations is based on the relationship the deceased had with their nearest living relatives.
Navigating an intestate estate's probate can span several months to years, influenced by the estate's intricacy, family disputes, and court schedules. The general steps include:
The administrator or personal representative is the person the court appoints to oversee and manage your estate if you do not leave a valid will that names an executor.
In New York, the intestate laws give clear guidelines on who and how the administrator will be appointed.
The following are the criteria used to appoint the administrator in order of priority:
The main role of the administrator is to ensure the deceased person's property is well-administered to their loved ones. This individual should act in the best interest of the estate and the distributees by being honest and diligent. Other responsibilities and duties an administrator performs are:
Filing for administration requires you to file a petition with the Surrogate's court asking them to begin the probate process. After successful filing, you can request to be appointed as administrator. The steps you will take are as follows:
Estate Value | Filing Fee |
---|---|
Less than $10,000 |
$45 |
10,000 but under 20,000 |
$75 |
20,000 but under 50,000 |
$215 |
50,000 but under 100,000 |
$280 |
100,000 but under 250,000 |
$420 |
250,000 but under 500,000 |
$625 |
500,000 and over |
$1,250 |
4. Notify and serve notice to family members, potential creditors, and other relevant parties.
5. Attend the court hearing to argue your case and provide additional documents.
6. Receive the letter of administration if the court approves. If they do not, consider the judge's recommendations and implement the best option.
7. Manage the estate as discussed earlier.
Understanding Intestate Succession: The Final Thoughts
Understanding who gets what when you're grieving the loss of a loved one may be the last thing on your mind. But understanding the laws that govern settling your loved ones estate is crucial when it comes to handling the estate.
While this article provides a comprehensive overview, each situation is unique, and the guidance of an expert can be invaluable.
Ready for Expert Guidance? Let's Talk.
If you're facing the challenges of settling an intestate estate in New York, you don't have to do it alone.
At ClearEstate, our estate professionals are well-versed in New York's intestate laws and can provide the guidance and support you need.
Book a free consultation with us today and let us help you navigate this complex process with ease and confidence.
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