Unpacking Promised Inheritances

Promised Inheritance: What It Is, How It Works, and Why It Matters in New Jersey

The stress and grief of losing a loved one are overwhelming and can be compounded when doubt arises regarding their estate.  There are agreements that couples make to honor each other’s intentions to bequeath their estate in a certain manner. For example, a husband and wife have wills indicating their children will receive their estate.  They also have a contract indicating that the surviving spouse cannot change their will and must bequeath the assets as agreed upon in their mutual wills.  However, in the state of New Jersey, strict guidelines must be followed for a contract to make a will (also known as a promised inheritance) to be legally recognized.

How Contracts to Make a Will Can Help Control Your Inheritance

There are many ways a contract to make a will can be used besides between married couples with children. For example, a married couple without children may agree to leave the estate to the surviving spouse and then to each of their families when the second spouse dies. The contract states that the second spouse agrees to honor the inheritance designed originally and cannot create a new will that would contradict the decedent’s intentions.  This is sometimes referred to as mutual or sweetheart wills.

A contract to make a will can also be used by those who want to donate a part of their estate to a charitable cause after the second spouse has passed. Some contracts are drawn up by those who want to ensure their caregivers will receive benefits for their services.  In the case of divorce or separation, couples will agree to leave their assets to the children in the marriage to avoid new spouses or subsequent children from interfering with the inheritance.  Prenuptial and postnuptial agreements can be replaced with a contract to make a will.  Outside of the realm of marriage and familial relationships, business partners may use a contract to make a will wherein they promise to bequeath their share of the business to the other(s).

How to Prove the Existence and Validity of a Contract to Make a Will in New Jersey

New Jersey probate law requires one of three possibilities when recognizing the validity of a contract to make a will.  The first is the will itself.  If the original will describes the intentions of the decedent, giving instructions as to what should be done with the assets, it is acceptable.  If there is a specific reference to the contract in the will describing its terms, that is seen as sufficient proof.  Lastly, If the contract is contained in a separate document, signed by the decedent and notarized, it is valid.

The Interaction of New Jersey Inheritance Laws with Contracts to Make a Will

New Jersey inheritance law guarantees the decedent’s spouse or civil union partner at least one-third of the estate’s value.  It is impossible to leave a spouse destitute through inheritance.  Giving gifts to family, friends, and charitable organizations is possible and can diminish the estate’s value upon death, thereby leaving a smaller inheritance for everyone involved.  This is a much more complicated process and should be done under a lawyer’s guidance to ensure its proper execution.

If, however, the couple is legally separated or divorced, the decedent is not required to include their former partner in the will.  By adding a codicil to an existing will, provisions can state the changes made to the original will without having to rewrite the entire document.  The codicil must be witnessed and signed similarly to a will.  The witnesses do not have to be the same ones used for the original will.  It is important that the will not contain notes in the margins or have parts of the text scratched out, as this could invalidate the entire document, leaving the estate intestate.

A Promised Inheritance Must be Addressed Legally to Hold up in NJ Court

Although writing your own will or contract to make a will is legally feasible, it is highly unrecommended. New Jersey probate and inheritance laws are some of the most complex in the nation, and there are many tax implications that need to be addressed.  Using clear, unambiguous language is of the utmost importance when creating a contract to make a will.  Your intentions for your estate should be crystal clear.  Talking with your attorney and the people who will be receiving a portion of your estate can leave less to interpretation.

Also, promising an inheritance without taking the necessary legal measures to ensure that it withstands legal scrutiny can leave you without the necessary recourse to have your wishes honored in the event of your death.  There is a superstition that talking about what will happen when we die is bad luck when in actuality, those we leave behind will have bad luck if our estate plans do not manifest as we wished.  Involving your benefactors in the process of creating the estate plan you want is an effective way of solidifying your will. Then, it is essential to have an experienced estate planning attorney to manage the legalities on your behalf.

Contact Our Estate Lawyers to Ensure Your Wishes are Properly Planned and Executed in Red Bank, NJ

Creating a will is a daunting endeavor and one that should not be attempted without knowledgeable legal guidance. Estate planning isn’t just for the very wealthy.  Your hard-earned assets should stay in the hands of those whom you choose. Our experienced wills, trusts, and estate planning attorneys at Chamlin, Uliano & Walsh serving Colts Neck, Wall, Freehold, Long Branch, Middletown, Red Bank, Howell, Manasquan, Toms River, Point Pleasant, and the greater Monmouth and Ocean County region, are well-versed in probate, inheritance law, legal mechanisms for carrying out your inheritance plans, and what to do when confronting estate-related disputes.  We want to collaborate with you to create a plan to distribute your estate on your terms.  Let us provide you with the tools you need to make informed decisions about your will, trust, and other estate planning needs. Contact us today if you have questions for our estate planning lawyers.  Call 732-440-3950 or complete this form to schedule a consultation.