Legal Question in Wills and Trusts in New Jersey
I have found through my counties surrogates office that an the estate of my father was valued at $150,000 but $100,000 of the estates value was derived from a settlement of a wrongful death claim (his claim made by my stepmother). A 50,000 probate bond was taken out also.
Now my question is this. Since it has been found that she had (she passed away three years ago) misappropriated the funds (because she failed to follow the rules of NJ Intestate Law) I had calculated that my entitlement should had been $50,000 since she was not my mother and I was my fathers only son. But I was told the payout from the bonds holding company would only be $25,000 based on the following explanation.
"The estimate of the value of the estate is trumped by the amount of
money the estate's claim was settled for. With insurance you do not
get the policy limits automatically. The policy pays for the amount of
the loss. The estate received $100,000 in settlement of the wrongful
death claim and your entitlement under same is the maximum liability
with the bonding company is responsible for."
Now I am having trouble understanding this because but shouldnt the bond apply to the entire amount of the estate since its purpose is to protect or ensure the entire estate is divided up correctly according to NJ's rules of intestacy?
I was also told the following.
"The bonding company is not bound to pay you more than you would have
received had your stepmother followed the New Jersey law as to
intestacy."
But if I was entitled to $50,000 by New Jersey intestacy law then shouldn't the $50,000 bond underwriter pay $50,000 which was the loss?
2 Answers from Attorneys
I would have to read the Bond to answer your question. If it was for the entire estate, then you should receive the total of what you would have been entitled to. Was your stepmother's estate probated at all? You should see an attorney to go over this in detail. If you call me and mention Law Guru, you will get a free half hour consultation.
The Bonding Company is very likely not going to change its position just because you tell them they are wrong. You need a lawyer to push this for you.
I am a local attorney, quite close to you.
Please give me a call to talk it over. The telephone discussion will be free of charge, and I will let you know what I believe I can do to assist you further. My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.
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