Estate Planning for Parents in New Jersey

A Strong Legal Plan Protects Your Children – Even When You Can’t

Children can’t inherit money directly. They can’t authorize medical treatment. And they can’t navigate probate court. Without a proper estate plan, everything you leave behind – from your bank account to your parenting wishes – becomes a legal question with no clear answer.

Estate planning fills in those gaps. It names a guardian. It protects assets in a trust. It gives the people you trust the authority they’ll need in an emergency. Most of all, it turns confusion into clarity when your child will need it most.

If you’re raising a minor in New Jersey, make sure your plan doesn’t leave anything to chance. Schedule a confidential consultation with an estate planning lawyer at Williams Law Group, LLC to get started.

New Jersey Law Doesn’t Automatically Protect Your Children

Dying without a valid will – known as “dying intestate” – triggers default rules. A judge will determine who raises your children and who controls any inheritance, based on what the law allows, not what your family wants.

In most cases, a court will:

• Assign a Guardian Based on Petitions and Arguments from Relatives: This process can become contested, and the person chosen may not reflect your wishes.
• Hold Your Child’s Inheritance in a Custodial Account Until Age 18: At that point, the entire amount may be released in full, regardless of their maturity or life situation.
• Appoint a Financial Guardian or Conservator – Possibly Someone You Wouldn’t Have Chosen: This person may have broad control over your child’s money but no personal relationship with them.
• Delay Access to Funds Your Child May Need Immediately: Without pre-authorized access, there may be a wait for court approvals to cover living expenses, school tuition, or medical care.
• Create Confusion or Conflict If Multiple Relatives Claim Authority: Without written guidance, family members may disagree about guardianship, leading to costly and traumatic legal disputes.
• Trigger Probate Proceedings for Basic Decisions: Even routine matters – like selling a home or using funds for a child's benefit – can require court involvement and legal fees.

This is how well-meaning families end up in court battles – or worse, with a guardian no one wanted and a teenager handed full control of six figures on their 18th birthday.

Naming a Guardian in a Will Is Only the First Step

New Jersey law allows parents to nominate a guardian in a valid will. But that’s only part of the solution. If you don’t name a backup, if your documents conflict, or if your nomination isn’t legally enforceable, the court can disregard it.

A legally sound guardianship provision needs to:

• Clearly identify both a primary and alternate guardian.
• Be integrated with your will or separate legal document.
• Reflect the guardian’s willingness to serve (preferably with signed acknowledgment).

A lawyer ensures this part of your plan will stand up in court – so no one has to guess who you wanted, and no judge has to decide in your absence.

Minor Children Can’t Inherit Directly – So Don’t Leave Them Money Without a Plan

Under New Jersey law, children under 18 cannot inherit directly. If a minor is named as a beneficiary on a life insurance policy or retirement account, the proceeds may be placed in a court-controlled account, with a financial guardian appointed to manage the funds. That money is then released in full when the child turns 18.

That’s rarely what parents intend.

A better approach: create a trust. Trusts give you control – not just over who manages the money, but how and when it’s used. You can stagger distributions, restrict use to education or living expenses, and avoid court involvement entirely.

This requires proper drafting. If the trust is vague, unfunded, or contradictory, it can be challenged – or worse, ignored.

Life Insurance and Beneficiary Mistakes That Create Problems

For many young families in Essex and Morris counties, life insurance is the largest financial asset. But if the policy lists a minor child as the beneficiary – a common mistake – it creates a legal headache. Insurance companies won’t release funds to minors, so the money gets tied up in guardianship proceedings.

Fixing this is simple but technical. A lawyer can help you:

• Name a trust, not a child, as the beneficiary.
• Ensure that the trust language aligns with the policy.
• Update any outdated forms – many people forget to revise beneficiaries after having children.

Small mistakes on paperwork can lead to massive problems later. Coordinating all assets with the estate plan is where lawyers add immediate, tangible value.

Trustees, Guardians, and Why You May Need More Than One Role

You can (and often should) separate guardianship and financial oversight. The person who’s best at parenting might not be best at managing money – and vice versa.

New Jersey law allows you to:

• Name a guardian of the person (who raises your child).
• Appoint a trustee (who manages inheritance and expenses).
• Designate someone else for medical or educational decision-making in special situations.

Each of these roles must be legally defined. A mismatch in documents can lead to confusion, delay, or infighting – particularly when families disagree. A lawyer makes sure all roles are spelled out clearly and backed by enforceable authority.

Your Estate Plan Is Only as Strong as Its Weakest Link

You might have a will, but does it match your trust? Are your life insurance and retirement accounts updated? Have you named guardians and backups?

These aren’t rhetorical questions – they’re where most DIY or outdated plans fall apart. One inconsistent form can derail your intentions completely.

Common weak points:

• Old wills that predate the birth of a child or divorce.
• Beneficiary forms that name the wrong person.
• No backup trustees or guardians.
• Plans made in other states that conflict with New Jersey law.

An estate planning lawyer reviews all of it – not just the big pieces, but the small details that determine whether the plan works when it’s needed.

Estate Planning Isn’t a Luxury. It’s a Responsibility.

Don’t let the idea of “not having enough” keep you from planning. This isn’t about tax shelters or big portfolios. It’s about your kids – who raises them, who protects them, and whether the money you worked for actually helps them when it counts.

Families across New Jersey are navigating this process every day. The legal system doesn’t make it easy – but the right lawyer does.

Start with a consultation. Get answers. Get it done right. Contact us today.