Legal Question in Wills and Trusts in New Jersey

Re: Wills

Yes, there is a very good way to avoid this problem. You need to see an attorney who specializes in estate planning and you will probably want to prepare a new Will that will establish a "QTIP" trust at your death. This is a special kind of trust that does the following:

1. It qualifies for the estate tax marital deduction so no estate tax will be due on the assets passing into the trust at your death.

2. Your wife is the beneficiary of the trust during her lifetime. She would get all the trust income and you could also provide that the trustees could make distributions of trust principal to her during her life.

3. At your wife's death, the trust assets go to the beneficiaries YOU name in the trust (e.g. your daughters). Your wife will not control what happens to the trust assets at her death and the assets will not be subject to the claims of her creditors, her children (or her new spouse).

Please call or email if you would like to discuss this further.

Re: Wills

In addition to Jon's comments, you might want to consider a living trust (one created during your lifetime). This has many advantages and can be revocable or irrevocable, and there are ways that, even if irrevocable, you may continue to receive the benefits, can create a life estate for your Wife, and still protect your children. I specialize in these documents, if you need assistance, and you can contact me for more information.