Legal Question in Wills and Trusts in New Jersey

Re: settlement of real estate

I'm not sure what the estate's relationship is to the FLP. Was the decedent the general partner?

Are there other assets in the FLP? Is it going to continue as an entity or be dissolved?

It seems to me that there are two things that must be resolved (1) the estate administration (payment of taxes, payment to beneficiaries, etc.) (2) the partnership termination and/or distribution. Both of these things can take time. Typically, the estate will file an estate tax return and if that is audited, final settlement of the estate could take one to two years. Since it has only been one month since the FLP sold the property, you may have to wait a bit longer.

Re: settlement of real estate

I concur with Jon, with some additional comments. NJ real estate closing laws have been modified recently. There is a possibility that advance income taxes may have to be paid, if any possible taxpayer is not a resident of NJ. Forms are required to be filed with the Deed notifying the taxing authorities of these possible taxes. In addition, there may be federal or NJ estate taxes due, based upon the death of a partner. Since you do not provide any financial information on the transaction (how much was involved), the size of the decedent's estate including his share of the sales proceeds or the position of the deceased partner (general or limited partner), these matters can impact on the availability of the expected distribution. If federal or NJ taxes may be due, to get clear title to the property the funds must be held in escrow until appropriate clearance documents are obtained and recorded, where applicable. Since these returns need only be filed within 8 months (NJ) or 9 months (federal) of the date of death, they might not have been filed yet. Additionally, it can take several months to process the returns, even if no or only minimal taxes are due. I would need much more information to give you a more precise answer. Finally, if it is anticipated that some lengthy delay might be experienced, are the funds being held in escrow at lease being invested to earn some income?