N.J. Stat. tit. 3B, ch. 23

in effect

N.J. Stat. § 3B:23-1 Distribution of assets in kind

Except where a will authorizes distribution to be made in cash or in kind, the distributable assets of an intestate's estate or testator's estate shall be distributed in kind to the extent reasonably possible through application of the following provisions: a. A specific devisee is entitled to distribution of the thing devised to him; b. Any devise payable in money or an intestate share may be satisfied by value in kind provided: (1) The person entitled to the payment has not demanded payment in cash; (2) The property distributed in kind is valued at fair market value as of the date of its distribution; and (3) No residuary devisee has requested that the asset in question remain a part of the residue of the estate. L.1981, c. 405, s. 3B:23-1, eff. May 1, 1982.

N.J. Stat. § 3B:23-2 Valuation of assets

For the purpose of valuation under subsection b. of N.J.S. 3B:23-1 securities regularly traded on recognized exchanges, if distributed in kind, are valued at the price for the last sale of like securities traded on the business day prior to distribution, or if there was no sale on that day, at the mean between amounts bid and offered at the close of that day. Assets consisting of sums owed the decedent or the estate by solvent debtors as to which there is no known dispute or defense are valued at the sum due with accrued interest or discounted to the date of distribution. For assets which do not have readily ascertainable value, a valuation as of a date not more than 30 days prior to the date of distribution, if otherwise reasonable, controls. For purposes of facilitating distribution, the personal representative may ascertain the value of the assets as of the time of the proposed distribution in any reasonable way, including the employment of qualified appraisers, even if the assets may have been previously appraised. L.1981, c. 405, s. 3B:23-2, eff. May 1, 1982.

N.J. Stat. § 3B:23-3 Method of distribution

If the personal representative of either a testate or an intestate estate has, in the exercise of good faith and reasonable discretion, continued to hold in kind the distributable assets of an intestate estate or of the residue of a testate estate, the assets shall be distributed in kind if there is no objection to the proposed distribution and it is practicable to distribute undivided interests, otherwise those assets shall be converted into cash for distribution. L.1981, c. 405, s. 3B:23-3, eff. May 1, 1982.

N.J. Stat. § 3B:23-4 Proposal of distribution; contents; time to object

After the probable charges against the estate are known, the personal representative may mail or deliver a proposal for distribution to all persons who have a right to object to the proposed distribution. The proposal shall notify all persons who have a right to object to the proposal of their right to object and that their objection must be in writing and received by the personal representative within 30 days after the mailing or delivery of the proposal. The right of any distributee to object to the proposed distribution on the basis of the kind or value of asset he is to receive, if not waived earlier in writing, terminates if he fails to object in writing received by the personal representative within 30 days after mailing or delivery of the proposal. L.1981, c. 405, s. 3B:23-4, eff. May 1, 1982.

N.J. Stat. § 3B:23-5 Instrument of distribution

If distribution in kind is made, the personal representative may and, if requested, shall execute an instrument or deed of distribution assigning, transferring or releasing the assets to the distributee as evidence of the distributee's title to the property. L.1981, c. 405, s. 3B:23-5, eff. May 1, 1982.

N.J. Stat. § 3B:23-6 Proof of delivery of instrument of distribution conclusive evidence of distributee's receipt of assets; exception

Proof that a distributee has received an instrument or deed of distribution of assets in kind or payment in distribution, from a personal representative, is conclusive evidence that the distributee has succeeded to the interest of the estate in the distributed assets, as against all persons interested in the estate, except that the personal representative may recover the assets or their value if the distribution was improper. L.1981, c. 405, s. 3B:23-6, eff. May 1, 1982.

N.J. Stat. § 3B:23-7 Protection of purchaser from or lender to distributee

If property distributed in kind or a security interest therein is acquired for value by a purchaser from or lender to a distributee who has received an instrument or deed of distribution from the personal representative, or is so acquired by a purchaser from or lender to a transferee from the distributee, the purchaser or lender takes title free of rights of any interested person in the estate and incurs no personal liability to the estate, or to any interested person, whether or not the distribution was proper or supported by court order or the authority of the personal representative was terminated before execution of the instrument or deed. This section protects a purchaser from or lender to a distributee who, as personal representative, has executed a deed of distribution to himself, as well as a purchaser from or lender to any other distributee or his transferee. To be protected under this provision, a purchaser or lender need not inquire whether a personal representative acted properly in making the distribution in kind, even if the personal representative and the distributee are the same person, or whether the authority of the personal representative had terminated before the distribution. Any recorded instrument described in this section on which a State documentary fee is noted pursuant to section 3 of P.L.1968, c. 49 (C. 46:15-7) shall be prima facie evidence that the transfer was made for value. L.1981, c. 405, s. 3B:23-7, eff. May 1, 1982.

N.J. Stat. § 3B:23-8 Partition for purpose of distribution

When two or more heirs or devisees are entitled to distribution of undivided interests in any real or personal property of the estate, the personal representative or one or more of the heirs or devisees may institute an action, prior to the formal or informal closing of the estate, for partition. After notice to the interested heirs or devisees, the court shall partition the property in the same manner as provided by law for civil actions of partition. The court may direct the personal representative to sell any property which cannot be partitioned without prejudice to the owners and which cannot conveniently be allotted to any one party. L.1981, c. 405, s. 3B:23-8, eff. May 1, 1982.

N.J. Stat. § 3B:23-9 Agreement among successors binding on personal representative

Subject to the rights of creditors and taxing authorities, competent successors may agree among themselves to alter the interests, shares, or amounts to which they are entitled under the will of the decedent, or under the laws of intestacy, in any way that they provide in a written contract executed by all who are affected by its provisions. The personal representative shall abide by the terms of the agreement subject to his obligation to administer the estate for the benefit of creditors, to pay all taxes and costs of administration, and to carry out the responsibilities of his office for the benefit of any successors of the decedent who are not parties. Personal representatives of decedents' estates are not required to see to the performance of trusts if the trustee thereof is another person who is willing to accept the trust. Accordingly, trustees of a testamentary trust are successors for the purposes of this section. Nothing herein relieves trustees of any duties owed to beneficiaries of trusts. L.1981, c. 405, s. 3B:23-9, eff. May 1, 1982.

N.J. Stat. § 3B:23-10 Distribution to guardian

A personal representative may discharge his obligation to distribute to any person under legal disability by distributing to the guardian of his estate. L.1981, c. 405, s. 3B:23-10, eff. May 1, 1982.

N.J. Stat. § 3B:23-11 Interest on general pecuniary devise

Interest on general pecuniary devise. General pecuniary devises shall bear interest beginning one year after the first appointment of a personal representative until payment, unless a contrary intent is indicated by the will or unless the court, for good cause, waives the imposition of interest. The annual rate of interest on general pecuniary devises shall equal the average rate of return, to the nearest whole or one-half percent, for the corresponding preceding fiscal year terminating on June 30, of the State of New Jersey Cash Management Fund (State accounts) as reported by the Division of Investment in the Department of the Treasury. L. 1981, c. 405; amended by L. 1987, c. 126, s. 1.

N.J. Stat. § 3B:23-12 Abatement generally.

3B:23-12. Except as provided in N.J.S.3B:23-14 and except as provided in connection with the share of a surviving spouse who elects to take an elective share, shares of distributees abate, without any preference or priority as between real and personal property, in the following order: a. Property passing by intestacy; b. Residuary devises; c. General devises; d. Specific devises; and e. Abatement within each classification is in proportion to the amount of property each of the beneficiaries would have received if full distribution of the property had been made in accordance with the terms of the will. Amended 2004, c.132, s.86.

N.J. Stat. § 3B:23-13 General devise charged upon specific property or fund

For purposes of abatement, a general devise charged on any specific property or fund is a specific devise to the extent of the value of the property on which it is charged, and upon the failure or insufficiency of the property on which it is charged, a general devise to the extent of the failure or insufficiency. L.1981, c. 405, s. 3B:23-13, eff. May 1, 1982.

N.J. Stat. § 3B:23-14 Where will expresses order of abatement

If the will expresses an order of abatement, or if the testamentary plan or the express or implied purpose of the devise would be defeated by the order of abatement stated in N.J.S. 3B:23-12, shares of the distributees abate as may be found necessary to give effect to the intention of the testator. L.1981, c. 405, s. 3B:23-14, eff. May 1, 1982.

N.J. Stat. § 3B:23-15 Abatement where subject of specific devise sold

If the subject of a specific devise is sold or used incident to administration, abatement shall be achieved by appropriate adjustments in, or contribution from, other interests in the remaining assets. L.1981, c. 405, s. 3B:23-15, eff. May 1, 1982.

N.J. Stat. § 3B:23-16 Distribution by order of court

When the account of a personal representative has been allowed by court, the court may direct just distribution, in accordance with the provisions of the will, of what shall remain in the estate or a trust under the will, after all debts and expenses and other charges have been allowed and deducted. L.1981, c. 405, s. 3B:23-16, eff. May 1, 1982.

N.J. Stat. § 3B:23-17 Judgment for distribution

When the account of a personal representative has been allowed by court, the court may direct just distribution of the property whereof a decedent died intestate which remains in his estate after payment of all debts, expenses and other charges which have been allowed and deducted as provided in chapter 5 of this title. L.1981, c. 405, s. 3B:23-17, eff. May 1, 1982.

N.J. Stat. § 3B:23-18 Distribution; when made

Distribution of the property of an intestate shall not be made until 1 year after the granting of administration unless an order to limit creditors is entered, in which case distribution may be made 6 months after the order. L.1981, c. 405, s. 3B:23-18, eff. May 1, 1982.

N.J. Stat. § 3B:23-19 Order for filing claims of unknown distributees

3B:23-19. Order for filing claims of unknown distributees. a. When it appears in an action for the distribution of the property of which a decedent dies intestate that no heirs to the property can be found or in addition to persons known to have an interest in the estate, there may be others whose names or addresses are unknown who may be entitled to participate in the distribution, the court may order additional actions to identify and locate heirs. b. If no heirs to the property can be found, the property shall be presumed abandoned and handled in accordance with the "Uniform Unclaimed Property Act (1981)," R.S. 46:30B-1 et seq. c. If, in addition to persons known to have an interest in the estate, others whose names or addresses are unknown may be entitled to participate in the distribution, the court shall order the part of the estate to which they may be entitled held for a specific period. The court shall set that period as two years beginning at the date of death unless good cause is shown to set another period. If the others cannot be located within the period, the court shall order the property divided among the known heirs in proportions as if the unknown heirs did not exist. Amended 2001, c.109, s.2.

N.J. Stat. § 3B:23-21 Unclaimed estate assets.

3B:23-21. Unclaimed estate assets. When a fiduciary states a final account and there remains in the fiduciary's control a balance, devise, distributive share, dividend, or sum of money to be paid to a person and the person, or that person's guardian, if a minor or a person who is incapacitated, fails to claim the balance, devise, distributive share, dividend, or sum of money within the period of time set forth in R.S.46:30B-37.1, then the property shall be disposed of as provided in N.J.S.3B:23-19 if it is part of an intestate estate or otherwise presumed abandoned and handled in accordance with the "Uniform Unclaimed Property Act (1981)," R.S.46:30B-1 et seq. amended 1989, c.58, s.3; 2001, c.109, s.3; 2013, c.103, s.51.

N.J. Stat. § 3B:23-22 Deposit in court of money or other property of devisee, heir or beneficiary of trust in certain cases

Where it shall appear that a devisee, heir or beneficiary of a trust would not have the benefit or use or control of the money or other property due him, or where other special circumstances make it appear desirable that the payment should be withheld or, in the case of a trust where the trustee was appointed other than by a court, the Superior Court, on motion of any person in interest, or, failing such, on motion of the Attorney General, or on the court's own motion, may direct that the money or other property be paid into court for the benefit of the devisee, heir, beneficiary of a trust, or any person or persons who may thereafter appear to be entitled thereto. The money or other property so paid into court shall be paid out only by order of the court. L.1981, c. 405, s. 3B:23-22, eff. May 1, 1982.

N.J. Stat. § 3B:23-23 Letters of trusteeship required before transfer to trustee

It shall be unlawful for any fiduciary to transfer, pay over or distribute any devise, distributive share or part of the estate or trust in the possession or under the control of the fiduciary to a testamentary trustee or substituted testamentary trustee until letters of trusteeship shall have been issued to the testamentary trustee or substituted testamentary trustee. L.1981, c. 405, s. 3B:23-23, eff. May 1, 1982.

N.J. Stat. § 3B:23-24 Refunding bond of devisee or distributee

A personal representative shall, on paying a devise or distributive share or on delivering an instrument of distribution to the person entitled, take a refunding bond therefor, to be filed in the office of the surrogate of the county wherein he received his letters or in the office of the clerk of the Superior Court, if he received his letters from the Superior Court. L.1981, c. 405, s. 3B:23-24, eff. May 1, 1982.

N.J. Stat. § 3B:23-25 Amount of bond; form

The bond required under N.J.S. 3B:23-24 or N.J.S. 3B:23-33 shall be in the amount or value of the devise or allotted distributive share and shall be sufficient, if signed by the devisee or distributee, or his guardian, as the case may be, without any sureties whatever. L.1981, c. 405, s. 3B:23-25, eff. May 1, 1982.

N.J. Stat. § 3B:23-26 Condition of devisee's bond

The bond of a devisee shall be conditioned substantially as follows: That if any part or the whole of the devise shall at any time thereafter be needed to discharge any debt or debts, devise or devises, which the personal representative may not have other assets to pay, he, the devisee, will return his devise or that part thereof as may be necessary for the payment of the debts, or for the payment of a proportional part of the devises. L.1981, c. 405, s. 3B:23-26, eff. May 1, 1982.

N.J. Stat. § 3B:23-27 Condition of distributee's bond

The bond of a distributee shall be conditioned substantially as follows: That if any debt or debts, truly owing by the intestate, shall be afterwards sued for and recovered or otherwise duly made to appear, and there shall be no other assets to pay, he shall refund and pay back to the administrator his ratable part of the debt or debts, out of the part and share so allotted to him. L.1981, c. 405, s. 3B:23-27, eff. May 1, 1982.

N.J. Stat. § 3B:23-28 Bonds required of holders of determinable interests; in general

A personal representative shall not be compelled to pay or deliver personal property devised for life, for a term of years or for any other limited period, or upon a condition or any contingency, to the holder of the determinable interest, until security is given to the court in a sum and form as the court may deem sufficient to secure the remainder interest, whenever it shall accrue or vest in possession. L.1981, c. 405, s. 3B:23-28, eff. May 1, 1982.

N.J. Stat. § 3B:23-29 Bond when remainderman is lineal descendant of holder of determinable estate

Where the person next immediately in remainder is a lineal descendant of the holder of the determinable interest referred to in N.J.S. 3B:23-28, the holder of the determinable interest shall not be required to give security in excess of $50,000.00. L.1981, c. 405, s. 3B:23-29, eff. May 1, 1982.

N.J. Stat. § 3B:23-30 Bond when the personal representative is holder of a determinable estate

When the personal representative is the holder of a determinable interest referred to in N.J.S. 3B:23-28, he shall, before receiving the personal property into his possession, file a bond with the clerk of the Superior Court or the surrogate of the proper county, as the case may be, unless the will provides that no security shall be required of him. The bond shall be in the amount of money or the value of the property to be received, with two sufficient sureties, conditioned for the faithful conservation of the property. Until the bond is filed, the personal representative may not receive the moneys or property, but the court may appoint some other proper person to receive and administer the money or property as trustee upon giving security for the faithful discharge of his duties as the court may deem proper. L.1981, c. 405, s. 3B:23-30, eff. May 1, 1982.

N.J. Stat. § 3B:23-31 Actions for distributive shares

If a personal representative fails to pay a distributive share to a person thereto entitled under a judgment made pursuant to N.J.S. 3B:23-17, that person may recover the distributive share in a civil action from the personal representative. L.1981, c. 405, s. 3B:23-31, eff. May 1, 1982.

N.J. Stat. § 3B:23-32 Limitations on enforcement of devise

Nothing in N.J.S. 3B:23-33 to N.J.S. 3B:23-35 shall be so construed as to permit the enforcement of a devise to the prejudice of creditors of the testator or as giving effect to a will not warranted by law. L.1981, c. 405, s. 3B:23-32, eff. May 1, 1982.

N.J. Stat. § 3B:23-33 Action for devise

A devisee may bring an action in the Superior Court for his devise. L.1981, c. 405, s. 3B:23-33, eff. May 1, 1982.

N.J. Stat. § 3B:23-34 Conditions precedent to suit for devise.

3B:23-34. An action to recover a devise may not be maintained until: a. The devise becomes due and payable; b. Reasonable demand for payment is made upon the personal representative; and c. A refunding bond in substantially the form prescribed in N.J.S.3B:23-26 is tendered to the personal representative by the devisee, or, if the devisee is a minor or a person who is incapacitated, by the guardian of the devisee's estate, and, if not accepted by the personal representative, the refunding bond is filed with the clerk of the court, prior to the commencement of the action. amended 2013, c.103, s.52.

N.J. Stat. § 3B:23-35 Extent of recovery

If it appears in the action that the surplus of assets in the possession of the personal representative over debts of the testator, is sufficient to pay all devises, the full amount of the devise may be recovered with costs; but if the surplus is not sufficient therefor, an abatement shall be made as provided in N.J.S. 3B:23-12 to N.J.S. 3B:23-15. L.1981, c. 405, s. 3B:23-35, eff. May 1, 1982.

N.J. Stat. § 3B:23-36 Plea of want of assets; procedure

If want of assets to pay debts and devises is pleaded in the action and if the account of the personal representative has not been settled, the court shall require him to account. Judgment shall be entered and execution shall issue only for the proportion ascertained to be payable to plaintiff, but the judgment shall remain a security for the payment of the residue of the devise and costs out of assets which may thereafter come to the possession of the personal representative. L.1981, c. 405, s. 3B:23-36, eff. May 1, 1982.

N.J. Stat. § 3B:23-37 Apportionment of certain real estate to pay devise

When a devise, payable on a contingency which has not happened, is or may become a charge, at law or in equity, on real estate devised by will, any person in possession of a part of the real estate may bring a summary action in the Superior Court to set apart, as in an action for partition, a portion of the real estate as may be sufficient for payment of the devise when payable. L.1981, c. 405, s. 3B:23-37, eff. May 1, 1982.

N.J. Stat. § 3B:23-38 Effect of apportionment; filing and recording papers

If the court approves the partition, the real estate so set apart shall become charged or chargeable with the contingent devise, and the residue of the real estate shall thereupon be entirely discharged from all lien, charge or liability with respect to the devise. All papers in the action shall be filed and recorded in the office of the county clerk or register of deeds and mortgages, as the case may be, of the county wherein the real estate is situate and shall be plenary evidence of the lien on the real estate so set apart and of the discharge of the residue of the real estate. L.1981, c. 405, s. 3B:23-38, eff. May 1, 1982.

N.J. Stat. § 3B:23-39 Deposit with court; effect.

3B:23-39. When a devise charged by will upon real estate is wholly or in part limited over: a. To minors, persons who are incapacitated, or persons not in esse; or b. To persons who cannot be ascertained until the happening of an event named in the will; or c. In a manner that the vesting of the devise may be contingent-- The Superior Court may, in a summary or other action by the executor, or a person interested in the real estate, direct the devise paid into court together with any additional sums as the court may deem reasonable to cover the expense of investing and taking charge of the devise. Upon payment into court, the real estate shall be wholly clear and discharged from the lien created by the will. amended 2013, c.103, s.53.

N.J. Stat. § 3B:23-40 Payment of interest on moneys deposited

When moneys are ordered to be paid into court pursuant to N.J.S. 3B:23-39, the interest thereof, or any part of the interest as the court may direct, shall be paid to or on behalf of the persons who would for the time being be entitled to the interest in proportion to their respective shares therein, and payments of interest shall be made, yearly or half-yearly or otherwise directly to the persons entitled thereto, unless otherwise directed by the court. L.1981, c. 405, s. 3B:23-40, eff. May 1, 1982.

N.J. Stat. § 3B:23-41 Return of devise pro rata

Where there are several devisees and a return of part of a devise shall afterwards appear necessary, each devisee shall only be compelled to return a proportional part of his devise so as to make up the whole sum needed. L.1981, c. 405, s. 3B:23-41, eff. May 1, 1982.

N.J. Stat. § 3B:23-42 Distribution of nonresident decedent's estate

The estate of a nonresident decedent being administered by a personal representative appointed in this State shall, if there is a personal representative of the decedent's domicile willing to receive it, be distributed to the domiciliary personal representative for the benefit of the successors of the decedent unless: a. By virtue of the decedent's will, if any, and applicable choice of law rules, the successors are identified pursuant to the local law of this State without reference to the local law of the decedent's domicile; or b. The personal representative of this State, after reasonable inquiry, is unaware of the existence or identity of a domiciliary personal representative. In other cases, distribution of the estate of a decedent shall be made in accordance with the law. L.1981, c. 405, s. 3B:23-42, eff. May 1, 1982.

N.J. Stat. § 3B:23-43 Right of retainer

The amount of a noncontingent indebtedness of a successor to the estate if due, or its present value if not due, shall be offset against the successor's interest; but the successor has the benefit of any defense which would be available to him in a direct proceeding for recovery of the debt. L.1981, c. 405, s. 3B:23-43, eff. May 1, 1982.

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