09 Dec How can I leave my money to my minor grandchildren when I die?

Q. My wife and I are doing our estate planning. We are both right around 60. She has no children and I have two adult children from a previous marriage. She will leave her half to her brother. I would like to leave mine to my non-adult grandchildren. If something were to happen to us before they become adults, can I make sure they don’t get control of any inheritance until they are adults? Can I make arrangements for any unborn grandchildren to be included or does each have to be named? Does it matter that the grandchildren do not live in New Jersey? And how can I keep my children from contesting the will?
— Planning

A. These are great questions to be asking in connection with your estate planning.

You have many options to make sure your wishes are followed after you die.

You can use a testamentary trust to provide for young beneficiaries whether they be children, grandchildren, step-children or unrelated beneficiaries, said Catherine Romania, an estate planning attorney with Witman Stadtmauer in Florham Park.

The terms of a testamentary trust are in your will and is only established and funded after you pass away, she said.

“The terms of the trust generally provide direction to the trustee as to ages at which distributions must be made, if any, as well as permit the trustee to make discretionary distribution of income and principal to the beneficiaries,” she said.

Beneficiaries do not need to be identified by name or need to be born at the time the will is written, but they must be able to be identified upon your death, she said. That means you can provide a bequest to all of your grandchildren whether or not they’re born yet.

“It does not matter where your grandchildren live with respect to your planning,” she said. “However, if they live outside the United States and the bequest is substantial, the laws of their home country should be considered as it may cause adverse tax implications to the recipient.”

As to your children, New Jersey does permit a provision in a will that penalizes any interested person — such as an heir or beneficiary — for contesting the will, but if probable cause exists for instituting a proceeding relating to the estate, then the clause will not be enforced, Romania said.

“When your wife writes her will naming her brother as primary beneficiary, she should name one or more contingent beneficiaries so that if her brother predeceases her, she does not need to revise her will,” she said. “If she fails to name a contingent beneficiary, and her brother predeceases, the assets pass according to the New Jersey intestacy statute, not pursuant to your will.”

Email your questions to .

This story was originally published on Dec. 9, 2021.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.