Estate Planning for Parents of Minor Children in New Jersey
Nobody wants to think about what would happen to their kids if something happened to them. It’s uncomfortable, and it’s easy to put off. But here’s a number worth sitting with: according to a 2025 Trust & Will report, only 36% of parents with minor children have a will. That means nearly two-thirds of parents are leaving some of the most important decisions, like who raises their children, entirely up to the courts. In New Jersey, that’s a risk you don’t have to take.
Who Would Raise Your Children?
If you die without a will and there is no surviving parent, a court will decide who becomes the guardian of your children. The judge will try to act in their best interests, but the court doesn’t know your family the way you do. You may have strong feelings about who should raise your kids, and equally strong feelings about who shouldn’t. A properly drafted will lets you name a guardian of your choosing. Under N.J.S.A. 3B:12-13, parents have the power to designate a testamentary guardian in their will. That designation carries significant weight in any future guardianship proceeding.
Choosing a guardian isn’t just about picking the person you trust most; it’s also about having a conversation with them first. The last thing you want is a nominee who is caught off guard or unwilling to serve.
What Happens to Your Assets?
In New Jersey, a minor cannot legally control significant assets. If you die and leave money directly to a child under 18, those funds are typically held in the Surrogate’s Intermingled Trust Fund under N.J.S.A. 3B:15-16 until the child turns 18. At that point, your 18-year-old receives the funds outright, no strings attached, no matter how large the sum.
Most parents don’t love that idea. A testamentary trust, a trust created inside your will, is one of the most effective tools for changing that outcome. You can direct that assets be held and managed by a trustee you name, distributed at specific milestones (college graduation, age 25, etc.), and used for your child’s education, health, and care in the meantime. It keeps the money protected and gives you real control over how your child benefits from it.
Other Documents You Should Have in Place
A will is essential, but it’s not the whole picture. Parents of minor children should also think about:
- Life insurance beneficiary designations: If you name a minor directly, the payout could end up in court-supervised guardianship. Naming a trust as beneficiary gives you more control.
- Power of attorney: If you become incapacitated, someone needs legal authority to manage your finances. Without one, your family may need to petition a court.
- Healthcare directive: Also called a living will, this tells medical providers what you want if you can’t speak for yourself.
These documents work together. Missing one creates a gap.
Reach Out to Our Estate Planning Team Today
The good news is that getting a plan in place doesn’t have to be complicated. It just has to happen. At Dempsey, Dempsey & Sheehan, our Summit estate planning attorneys help parents of young children put the right documents in place so that the people they love are protected no matter what. Contact Dempsey, Dempsey & Sheehan today, because the best time to do this was yesterday, and the second best time is now.
Source:
law.justia.com/codes/new-jersey/title-3b/
