# NJ Inheritance & Refunding Bond ? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [October 11, 2012, 2:18pm UTC](https://boards.straightdope.com/t/nj-inheritance-refunding-bond/637417 "2012-10-11T14:18:53Z")\ **Posts on this page:** 4\ **Page:** 1
**Author:** ![muldoonthief](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/muldoonthief/32/3188_2.png) [@muldoonthief](https://boards.straightdope.com/u/muldoonthief)\ **Post date:** [October 11, 2012, 2:18pm UTC](https://boards.straightdope.com/t/nj-inheritance-refunding-bond/637417/1 "2012-10-11T14:18:53Z")
My 96 year old Aunt passed away earlier this year. I’m one of her heirs. With the inheritance is a request/requirement to sign & return a “refunding bond”. Googling hasn’t been terribly useful, but as far as I can tell, this is a New Jersey specific legal requirement (she was a NJ resident) that basically says, if anyone tries to sue the estate, or more taxes or fees are levied by the govt., I agree to give back the money. There’s no expiration date that I can find on it beyond which I’m free & clear. Indeed, it contains the phrase “any part of the whole of such legacy **shall at any time hereafter** appear to be wanting to discharge any debt or debts, legacy or legacies”. Which seems to mean that I never get to actually use the money for anything, because I’m running the risk that some time in the future I’ll have to return it. So any NJ attorneys know anything about this? It looks like I don’t have a choice - the executor won’t or can’t release the funds until he has the signed refunding bond in hand. It appears to be a standard NJ inheritance issue, but it seems incredibly restrictive. BTW, if you google it, you get lots of info about a investment instrument called a refunding bond. This is completely different. ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [October 12, 2012, 6:40pm UTC](https://boards.straightdope.com/t/nj-inheritance-refunding-bond/637417/2 "2012-10-12T18:40:54Z")
I’m not familiar with New Jersey rules per se, though when my mother passed away (Pennsylvania) we all had to sign something saying that if the government came after the estate for taxes etc. we’d have to pony up the money from the inheritance. I don’t recall that it was open-ended. My husband received an inheritance from a grandparent in New Jersey, a long time ago; he may well have had to sign a bond such as you were asked to. Makes sense that you’d have to sign _something_, if the executor distributes the proceeds too quickly and there are outstanding tax liens etc., you might have gotten some proceeds that wouldn’t otherwise have been available. If the executor has done reasonable due diligence, then the odds of this being an issue are probably small. ---
**Author:** ![That\_Don\_Guy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/that_don_guy/32/538_2.png) [@That\_Don\_Guy](https://boards.straightdope.com/u/That_Don_Guy)\ **Post date:** [October 12, 2012, 7:18pm UTC](https://boards.straightdope.com/t/nj-inheritance-refunding-bond/637417/3 "2012-10-12T19:18:46Z")
If you search the New Jersey Statutes, Title 3B (which deals with estates and inheritances), there’s quite a bit of legalese about Refunding Bonds. I’m not sure if I am reading it right, but I get the impression that this is something that really only applies to the executor of the will. ---
**Author:** ![muldoonthief](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/muldoonthief/32/3188_2.png) [@muldoonthief](https://boards.straightdope.com/u/muldoonthief)\ **Post date:** [October 12, 2012, 7:41pm UTC](https://boards.straightdope.com/t/nj-inheritance-refunding-bond/637417/4 "2012-10-12T19:41:12Z")
OK, looking through the NJ statutes - this is the kind of language that has me really worried: > [@NJ](#): > > 3B:22-16. Action upon refunding bond of devisee or heir > A claimant against an estate who has failed to present his claim in due form within the time required, may bring an action in his own name without leave of court on a refunding bond given by a devisee or heir and recover the proportion of his claim which ought to be paid out of the devise or distributive share for which the bond was given. > > ``` > Recovery on a refunding bond shall in no case exceed the amount actually received by the devisee or heir furnishing the bond. > > ``` I’m pretty sure I’m a “devisee or heir”, and from the sounds of this, there’s an unlimited time (or at least beyond the limits of when the estate is administered) during which someone could sue me personally for my share of the estate. We’re not talking bazillions of dollars here or anything, but it would be nice to know I can safely put this money in my daughters’ college funds and be sure it’ll still be there when they need it.