The first few weeks
Nothing about the house has to be decided right away. A few things do need attention early, mostly to protect it.
- Lock it up. Change or rekey the locks if you don't know who has keys. Take photos of every room.
- Call the homeowner's insurance company. Many policies limit coverage once a home sits empty. Ask what they need to keep it covered while it's vacant.
- Keep utilities on. Heat in winter prevents frozen pipes, which is one of the most expensive surprises in an empty house.
- Forward the mail. Tax bills, mortgage statements, and insurance notices will tell you what the house costs each month.
- Find the will and the deed, and gather death certificates. You'll need several certified copies.
Getting authority to act
Until a court office names someone to act for the estate, nobody can sell the house or sign for it. That person receives a document called letters.
- If there's a will, the named executor applies for letters testamentary.
- If there's no will, a close relative (usually a spouse or child) applies for letters of administration.
Some houses pass outside probate altogether, such as a home owned jointly with a surviving spouse or held in a trust. Check how the deed is titled before assuming you need letters.
New Jersey steps
Probate happens at the Surrogate's office in the county where your loved one lived. A will can't be admitted until at least 10 days after the death.
- Within 60 days of probate, the executor mails notice to beneficiaries and close family.
- Creditors generally have 9 months from the date of death to present claims.
- Before the house can transfer, New Jersey needs to know inheritance tax is handled. When every heir is Class A (see below), that's usually done with a self-filed affidavit (Form L-9) instead of a full tax return.
Pennsylvania steps
Probate happens with the Register of Wills in the county where your loved one lived.
- After letters are granted, the estate is advertised in local papers, and formal notice goes to heirs and beneficiaries within 3 months.
- Pennsylvania taxes almost every inheritance, including to children, so the 3-month discount window below is worth knowing about early.
- The inheritance tax return (REV-1500) is filed with the county Register of Wills.
Inheritance tax
Both states tax what heirs receive, based on how they were related to the person who passed. The state that applies is generally where your loved one lived, plus wherever real estate sits.
Pennsylvania
| Who inherits | Rate |
|---|---|
| Surviving spouse | 0% |
| Parent inheriting from a child age 21 or younger | 0% |
| Children, grandchildren, parents, and other direct descendants or ancestors | 4.5% |
| Brothers and sisters | 12% |
| Everyone else (nieces, nephews, friends, unmarried partners) | 15% |
| Qualified charities | 0% |
Deadlines: pay within 3 calendar months of the death and the tax is reduced by 5%. An estimated payment counts. The return and any balance are due at 9 months, after which interest applies.
New Jersey
| Who inherits | Rate |
|---|---|
| Class A: spouse or civil union partner, children, stepchildren, grandchildren, parents, grandparents | Exempt |
| Class C: brothers and sisters, sons- and daughters-in-law | First $25,000 exempt, then 11% to 16% |
| Class D: everyone else, including nieces, nephews, cousins, friends, unmarried partners | 15% up to $700,000, 16% above |
| Class E: qualified charities and certain institutions | Exempt |
Deadlines: the return and payment are due 8 months after the death. New Jersey has no early-payment discount. Unpaid tax accrues interest at 10% a year. A filing extension doesn't extend the time to pay.
New Jersey repealed its estate tax in 2018. Pennsylvania has no separate estate tax. The federal estate tax only affects very large estates.
Selling a house during probate
Once letters are granted, the executor or administrator can usually sell the house before the estate is closed. In fact, selling is often how the estate raises money for taxes and bills. A few practical points:
- The title company will want certified letters, a death certificate, and in New Jersey, the tax waiver or affidavit.
- Heirs don't all need to be at closing. Talk with them early anyway; agreement on the plan prevents most delays.
- If there's a mortgage, keep paying it. Lenders generally can't call the loan just because the owner passed away and it went to a relative, but missed payments still cause problems.
- Many townships require resale inspections or certificates before any sale. Ask your buyer who pays for them.
When to call an attorney
Plenty of families settle simple estates with light help. Bring in a probate attorney if:
- There's no will, or the will is unclear or contested
- Heirs disagree about the house
- The estate owes more than it owns
- Anyone other than a spouse or child inherits in New Jersey, or the estate owes significant tax in either state
- The house is in a trust, or title was never updated from an earlier death
This guide is general information, reviewed for accuracy but not legal or tax advice. Rules change. Confirm anything time-sensitive with your county office, an attorney, or a CPA.