PROBATE FAQS

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Question:
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Category: Probate, Trusts, Wills & Estates
Location: NJ
Subject:  Refunding Bond and Release

In 2003 I received assets from my mother's estate.  Two of the assets, rental buildings went into an S corp. with me and my two brothers as shareholders.  At the time of distribution I did not receive a refunding bond and release.  Recently, I received a letter from the executor's attorney asking me to sign a refunding bond and release.  There have been some issues with the handling of
the estate.  Do I have to sign the refunding bond and release?  What happens if I do not sign the refunding bond and release?  Can I just sign the refunding bond and not sign the release?


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Reply:
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Category: Probate, Trusts, Wills & Estates
Location: NJ
Subject:  Re: Refunding Bond and Release

You should hire an estate attorney to review the estate and the accounting. The Refunding Bond and Release has two purposes. The Refunding portion obligates you to pay back what you received from the estate if demanded by the executor or creditor of the estate. The Release eliminates your rights to make claims against the executor. If you and your attorney decide that it is best for you not to sign the Refunding Bond and Release, then a formal accounting will be filed in court and your attorney can file your objections.

I hope this helps!

Ron Cappuccio

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Question:
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Category: Probate, Trusts, Wills & Estates
Location: NJ
Subject:  Power of Attorney

My brother has Power of Attorney and is paying my mothers bills out of her bank account. She is now in the hospital and trying to get on Medicare.  I want to know because of the POA is my brother responsible for her bill in the event of her death


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Reply:
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Category: Probate, Trusts, Wills & Estates
Location: NJ
Subject:  Re: Power of Attorney

A Power of Attorney is only valid during the grantor's life. Once your mother dies, the Power of Attorney is automatically terminated. The person designated as Executor in your Mother's will would have the responsibility for administering the estate.

I hope this helps!

Ron Cappuccio

PROBATE/ESTATE FAQS

How long does a Creditor Have to File a Claim with the Executor of an Estate?

Before the 2005 amendments, an Executor was often well advised to obtain an "Order Limiting Creditors" sometimes referred to as a "Rule to Bar." Creditors would have 6 months from the date of publication of the Order to submit their claims or be "forever barred..."

As amended, 3B:22-4 no longer requires an Order or publication.
Creditors have 9 months FROM THE DATE OF THE DECEDENT'S DEATH to submit their claims to the P.R.  Thereafter, the P.R. is not liable to any creditor for disbursing assets to beneficiaries.

Notice that previously, there was, in effect, a statute of limitations actually barring claims made after 6 months from publication. Now the statute simply exonerates the P.R. if there aren't sufficient assets left to pay a creditor who submits a bill after 9 months. This means that late creditors can still  get paid if the P.R. doesn't distribute fast enough and there are enough assets left to cover the debt OR. presumably, pursue beneficiaries who have received distributions pro-rata. I