What Happens When a Relative Dies Without a Will in New York City

When you find a close relative to die without a will, the loss can be challenging and emotional. When that relative who dies without a will has property that needs to be distributed to the heirs, observing the proper procedure is important in order to save time and resources so distribution may be made as immediately as possible.

Types of Estate Proceedings

In New York, here are two types of estate proceedings for a person who dies without a will:

1. Administration
2. Voluntary Administration

When your relative dies without a will, you file a petition for administration. If your relative did not own any real estate and the value of their personal property is less than $50,000, then the estate may be processed under voluntary administration, which is a simplified process.

For this reason, when your relative dies without a will, the remaining relatives need to determine the proper procedure to be observed by asking is the estate below $50,000.

In determining what procedure will be observed, the value of the probate estate is considered, excluding the non-probate assets. So for example, if your relative died with his house owned by a trust, $200,000 in his retirement account with the spouse as his beneficiary, and only $10,000 in his bank account, your deceased relative’s estate will be administered under voluntary administration because he died with no real property and a probate estate of less than $50,000.

Voluntary Administration

When a person dies with an estate below $50,000, the probate estate is administered under voluntary administration. To qualify under voluntary administration, the following conditions must concur:

• Your relative died without owning real property in his sole name;
• Your relative owned personal property of less than $50,000;
• There is no wrongful death or other lawsuit to be filed against a third party.

When all of the above conditions concur, the estate is a small estate and thus administered under quicker process called voluntary administration.

Petition for Administration

When the estate is not a small estate and the person dies without a will, a petition for administration is filed. In New York, the closest living relative, usually the spouse, files the petition for administration.

Sometimes, and more especially in cases of blended families where there is a second spouse but the children are from the former spouse, there will almost always be competing claims for administration. When this happens, parties undergo settlement on how property will be distributed in case they agree to the other party being appointed as administrator.

Procedure for Administration

An administrator must follow the procedure provided by state law in administering an estate. Before distribution can be made, estate debts and expenses must be first be paid.

In New York, there is a hierarchy of payment for debts and expenses under SCPA § 1811. When the administrator fails to observe this order and the estate is found to be insufficient to pay the debts, the administrator may be held liable.

There is a seven-month period from the time the administrator is appointed for creditors to file their claims. After this period, the administrator may distribute the remaining proceeds to the heirs in good faith.

Administering an estate when a person dies without a will can be a complex matter. There may be also doubts as to the value of the probate estate for purposes of determining whether the estate is a small estate. An experienced probate attorney can assist you, in case one of your close relatives has died without a will.

Should you need assistance, we at the Law Offices of Albert Goodwin are here for you. We have offices in New York City, Brooklyn, NY and Queens, NY. You can call us at 212-233-1233 or send us an email at [email protected].