Is there a law that allows next of kin to distribute personal belongings intestate without becoming administrator.

I don't see any law which lets next of kin sell estate assets, pocket the money, all without the approval of any probate court, and ignore the claims of creditors. I assume creditors exist because of the what you have written. You may be thinking of two other types of laws here. Most states allow for a very informal procedure to dispose of estate assets if the estate has a very limited value, with the limit varying from state to state. Also, most states provide in certain cases for widows, widowers and minor children to receive a preference over creditors if the estate is small. However, what you are asking, if I understand your question correctly, does not fit into either of the latter two cases.

New York Estates, Powers and Trusts Law Section 5-3.1 is entitled "Exemption for benefit of family" and applies where decedent left a surviving spouse and/or children under the age of 21 years. You can probably google the information I just gave you for the detailed list of assets which are protected from creditors and bankruptcy by being deemed not part of the estate, but instead to have vested in and set off to the spouse automatically. While this may protect assets from creditors and allow you to keep one car with a value not to exceed $25,000 (chances are any car liens will stick to the title and not disappear) and other personal property within the family, you may still require some assistance with making that transfers happen.