Your father's estate is entitled to your father's share of his mother's estate. Did your father have a will? If he did, then the will has to be admitted to probate, and the money from his mother's estate goes to the estate of your father, and then is distributed according to his will. If he did not have a will, someone will have to apply to the surrogates court to serve as his administrator because he died "intestate" without a will. Then the money from his estate, and his mother's estate, will be distributed according to the intestate laws. NJSA 3B:5-3
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