Considerations When Writing a Family Will

A will is a foundational document that can be changed at any time, provided the person revising it is competent. Importantly, it allows you to identify family members who will inherit your assets and make critical decisions about the care of your dependents. Young couples, in particular, need a customized family will that considers situations such as incapacity, guardianship, and unexpected tragedies.

Naming Guardians for Minor Children

If you have minor children, naming a guardian is arguably the most important function of your will. The person who has physical custody and caretaking responsibilities for your children is called a guardian. Without a will, the court will decide who raises your children, which may not align with your wishes.

When selecting a guardian, consider their parenting style, values, location, and financial stability. It is also highly recommended to name an alternate guardian in case your first choice is unable or unwilling to serve when the time comes.

Choosing the Right Trustee

While a guardian cares for the child, a trustee is the person who manages or holds the assets left for the benefit of that child. You can name the same person for both roles, but many families choose to separate them to create a system of checks and balances.

However, it is crucial to consider how the trustee and the guardian will interact. For example, if the guardian believes a $10,000 summer camp is essential for the child's development, but the trustee refuses to release the funds because they disagree with the expense, it can cause severe friction. You must ensure that the people you appoint share similar values regarding your children's upbringing.

Considerations for Blended Families

The definition of "family" can be complex. It might seem obvious that your family members are your spouse and your children, but what about children from a prior relationship? What about stepchildren?

If an individual passes away without a will in New Jersey, the state's intestacy laws dictate who inherits. This can lead to unintended consequences in blended families. For instance, if you have children from a first marriage who are already provided for via life insurance, you might want your estate to primarily benefit the children of your second marriage. Without a will, you have no flexibility to define these specific intentions, and the state will divide assets according to a rigid formula.

A will also allows you to specifically include or exclude adopted children, stepchildren, or children born after the will is written.

Planning for Simultaneous Death

You must also address what happens in a simultaneous death scenario. Young families often travel together. What happens if both parents pass away at the same time? Who inherits the estate then? Who is in charge of managing the money?

Furthermore, what if the entire immediate family is lost? The best thing about having a comprehensive estate plan is that you can plan for the worst-case "what-ifs," ensuring your assets go to the extended family members, friends, or charities of your choosing, rather than being absorbed by the state.