by Jose D. Roman | Sep 1, 2026 | Estate Administration, Estate Planning, Last Will and Testament, Legal Bulletin, NJ Supreme Court, Probate
Families often assume that a Last Will and Testament clearly reflects a loved one's wishes and that those wishes will be carried out without controversy. Unfortunately, that is not always the case. A recent decision by the New Jersey Supreme Court, Christakos v. Boyadjis, 262 N.J. 447 (2026), highlights how misunderstandings, outdated estate plans, and last-minute revisions can lead to years of probate litigation and significant expense.
The case involved two brothers, Peter and Nicholas Christakos, who had signed wills in 2003 providing that their estates would pass to one another and, ultimately, to certain family members. More than a decade later, they consulted an attorney about updating their estate plans. During that process, the attorney incorrectly interpreted provisions of the existing Wills and later drafted new Wills that did not fully accomplish what the brothers intended. After both brothers died, multiple probate disputes followed, eventually leading to a legal malpractice lawsuit against the drafting attorney.
The New Jersey Supreme Court was asked to decide whether a family member who was not a client of the attorney could sue the attorney for malpractice. The Court held that, under the circumstances presented, she could not. In adopting Section 51 of the Restatement (Third) of the Law Governing Lawyers, the Court emphasized that attorneys generally owe duties to their clients, not to every person who might have expected to inherit from an estate. Because there was insufficient evidence that the decedents intended the claimant to be a beneficiary under the later wills, the malpractice claim could not proceed.
Although the decision focuses on attorney liability, the more important takeaway for New Jersey families is the value of careful and proactive estate planning.
One lesson is the importance of regularly reviewing an estate plan. Many people create a Will and never look at it again. Over time, however, family relationships change, beneficiaries pass away, financial circumstances evolve, and personal priorities shift. An estate plan that made perfect sense twenty years ago may no longer reflect a person's wishes today. Regular reviews help ensure that documents remain consistent with current goals and avoid surprises after death. For more information about creating and updating a Will, see my article on Last Wills and Testaments in New Jersey.
The case also demonstrates the importance of clearly expressing testamentary intent (what the person signing the Will intends). Much of the litigation centered on determining what the brothers actually wanted to happen to their property. When estate planning documents leave room for interpretation, surviving family members may spend years fighting over those questions in court. Clear drafting, thorough communication with counsel, and careful documentation of significant decisions can substantially reduce the likelihood of future disputes.
Another important issue is planning before health concerns become urgent. Questions regarding diminished capacity frequently arise when Wills or estate planning documents are executed later in life. While most older adults retain the ability to make valid estate planning decisions, waiting until a medical crisis occurs can increase the risk of challenges after death. Addressing estate planning needs early is often one of the most effective ways to protect both the plan and the family members who may later be called upon to defend it.
The decision is also a reminder that family members should avoid making assumptions about inheritance rights. A relative may have been included in an earlier Will but omitted from a later one. Beneficiary designations, trusts, and revised estate planning documents can dramatically alter who ultimately receives property. Expectations based on old documents or family conversations often lead to disappointment and lawsuits.
For many New Jersey families, real estate is among the most valuable assets in an estate. Questions about who inherits a home, whether the property should be sold, and how ownership transfers after death are common sources of conflict. If you are dealing with inherited real estate, my article on Inherited Homes in New Jersey discusses several of the practical and legal issues that may arise.
The broader lesson of Christakos v. Boyadjis is that good estate planning is not simply about signing documents. It is about creating a legally sound plan that accurately reflects your wishes, communicating those wishes clearly, and revisiting the plan as life changes. Taking those steps can help minimize uncertainty, reduce the risk of expensive probate disputes, and provide peace of mind for both you and your loved ones.
Estate disputes do not always end up in court. In some cases, alternative dispute resolution may offer a more efficient path forward. You can learn more in our article on Arbitration Clauses and New Jersey Will Disputes. Likewise, major life events can have unexpected consequences for inheritance rights, as discussed in my post about Death During a Pending Divorce in New Jersey.
by Jose D. Roman | Aug 25, 2026 | Estate Administration, Medicaid, Medicaid Estate Recovery, Probate
In a published decision issued on April 8, 2025, the New Jersey Appellate Division addressed a significant question involving Medicaid estate recovery: Can the State recover Medicaid benefits paid during a recipient's lifetime from the proceeds of a survivorship medical malpractice claim brought after the recipient's death?
In Estate of Leonor R. Dizon v. State of New Jersey, Department of Human Services, Division of Medical Assistance and Health Services, 481 N.J. Super. 451 (App. Div. 2025). the court answered that question with a clear yes. The decision confirms the consensus understanding of what constitutes an estate asset for Medicaid recovery purposes and serves as an important reminder for families pursuing litigation on behalf of deceased loved ones.
The Background
The decedent, Leonor Dizon, received Medicaid benefits from 2006 through 2018. After suffering injuries from a fall at a hospital, she died ten days later. Following her death, her estate filed a medical malpractice lawsuit that included survivorship claims. Meanwhile, the New Jersey Division of Medical Assistance and Health Services (DMAHS) asserted a Medicaid estate recovery lien of approximately $214,392, representing Medicaid benefits paid on her behalf after age fifty-five. The estate challenged the lien, arguing that the State's recovery should be limited only to any medical expenses recovered from the lawsuit and should not extend to the entire value of the survivorship claim.
The Legal Issue
At the center of the dispute was the distinction between two Medicaid recovery mechanisms: a) Third-Party Liability Recovery and b) Estate Recovery.New Jersey law permits Medicaid to recover medical expenses from settlements or judgments obtained against responsible third parties. This is commonly known as third-party liability recovery. In addition, Federal and state law also require Medicaid estate recovery after the death of certain recipients, allowing the State to seek reimbursement from assets belonging to the deceased recipient's estate. The estate argued that proceeds from a survivorship action should be treated only as third-party recovery funds and therefore subject to more limited reimbursement rules. The State argued that survivorship claims are estate assets and therefore available for full estate recovery.
The Court's Decision
The Appellate Division sided with the State and affirmed the validity of the Medicaid lien. The court concluded that a survivorship cause of action is an asset of the decedent's estate and therefore falls within the broad definition of estate property subject to Medicaid estate recovery. The court emphasized several key principles:
1. Survivorship Claims Are Estate Assets
Under New Jersey's Survival Act, claims that belonged to a person before death survive and become assets of the estate. The estate representative essentially steps into the decedent's shoes and may pursue those claims after death. The court rejected the argument that an unfiled medical malpractice claim was merely speculative and therefore not property. Instead, it concluded that the decedent possessed an interest in the potential claim at the time of death, making it part of the estate.
2. Estate Recovery Is Broader Than Third-Party Recovery
The court explained that Medicaid estate recovery is not limited to reimbursement for injury-related medical expenses. Once a Medicaid recipient over age fifty-five dies, the State may pursue recovery from estate assets for all Medicaid benefits properly paid on the recipient's behalf.
3. Federal Anti-Lien Protections Do Not Apply the Same Way After Death
The estate relied heavily on the United States Supreme Court's decision in Arkansas Department of Health & Human Services v. Ahlborn, which limited Medicaid recovery from a living recipient's settlement. The Appellate Division distinguished that case, finding that the protections applicable to living Medicaid recipients do not prevent estate recovery after death.
Why This Case Matters
This decision has important implications for estate planning and estate administration. Loved ones pursuing survivorship claims should understand that any recovery may be subject to Medicaid estate recovery liens. Failure to investigate outstanding Medicaid claims could complicate estate administration and settlement distributions. Many families assume that a successful medical malpractice or personal injury action will ultimately benefit heirs. This case demonstrates that Medicaid liens may substantially reduce those recoveries when estate recovery laws apply.
The decision highlights the importance of proactive Medicaid planning. Understanding how estate recovery rules interact with litigation claims can help families avoid unexpected consequences and make informed planning decisions.
A Note About Wrongful Death Claims
One important distinction remains. The court noted that wrongful death claims, which seek compensation for the losses suffered by surviving family members, are generally not considered assets of the decedent's estate because those claims belong to the living family members of the deceased. As a result, wrongful death recoveries may be treated differently for Medicaid recovery purposes. Practitioners must carefully distinguish between these causes of action when evaluating potential liens.
Takeaway
The Appellate Division's decision confirms that a survivorship cause of action is an estate asset subject to Medicaid estate recovery. For Medicaid recipients over age fifty-five, the State's recovery rights may extend beyond injury-related medical expenses and reach the broader value of estate assets, including proceeds obtained through survivorship litigation.
Families administering estates that involve Medicaid benefits and pending litigation should carefully evaluate potential estate recovery claims before distributing assets or negotiating settlements.
by Jose D. Roman | Aug 18, 2026 | Estate Administration, Estate Planning, Last Will and Testament, Probate
In a prior post, I explained that you cannot arbitrate a Will dispute in New Jersey — at least not through an arbitration clause buried in the Will itself. That remains the law. But a July 2026 decision from the New Jersey Appellate Division, In re Estate of Roseanne Dyevich, A-1192-24 (App. Div. July 22, 2026), illustrates an important distinction: when the parties themselves voluntarily agree to submit an estate dispute to arbitration, that agreement is enforceable — and the arbitrator's decision is binding and difficult to overturn.
What Happened in the Dyevich Estate
Nicholas and Roseanne Dyevich had four sons: Kevin, James, Thomas, and Michael. After both parents died — Nicholas in 2015 and Roseanne in 2019 — the family found itself in a tangle of litigation. Six separate court matters were pending, involving disputes over the administration of Nicholas's estate, Roseanne's incapacity and guardianship, the disposition of real property, allegations of financial misappropriation, and the conduct of James as executor and guardian.
Rather than litigate all six cases to conclusion, the parties — including a non-family creditor and a corporate entity — agreed to resolve everything through binding arbitration. The arbitrator issued a comprehensive written opinion and a final judgment addressing all of the contested issues. Kevin, who had served as executor, then moved to vacate the award in the trial court, arguing that the other brothers had engaged in misconduct that tainted the arbitration. The trial court denied his motion. Kevin appealed.
The Court's Ruling: Misconduct by a Party Is Not Enough
The Appellate Division affirmed the denial and offered a clear statement of the law. Under the New Jersey Uniform Arbitration Act, N.J.S.A. 2A:23B-23(a), a court may vacate an arbitration award only for six specific reasons. Those grounds are narrow and focused on process, not outcome — things like fraud by the arbitrator, evident partiality of the arbitrator, refusal to hear material evidence, or an arbitrator exceeding their authority.
Kevin's argument was that the defendants had committed fraud — doctoring photographs, destroying financial records, failing to pay the accounting firm. But the court pointed to the critical distinction: under New Jersey law, an arbitration award "may be vacated only for fraud, corruption, or similar wrongdoing on the part of the arbitrators." Rappaport v. Pasternak, 260 N.J. 230, 249 (2025) (quoting Chief Justice Wilentz in Perini Corp. v. Greate Bay Hotel & Casino, Inc., 129 N.J. 479, 548 (1992)). Alleged misconduct by the opposing party does not meet that standard.
The court also declined to consider several arguments Kevin raised for the first time on appeal — including a new claim that the defendants had doctored photographs to influence the arbitrator. Under long-standing New Jersey appellate practice, issues not raised before the trial court are generally not considered on appeal. Nieder v. Royal Indem. Ins. Co., 62 N.J. 229, 234 (1973).
The Key Distinction: Voluntary Arbitration vs. a Will Clause
This case is easy to confuse with the Hekemian situation I wrote about earlier, but the two are fundamentally different. In Hekemian, a testator attempted to impose arbitration on beneficiaries through a clause written into the Will — a unilateral document that the beneficiaries never agreed to, could not negotiate, and were never asked to sign. The Appellate Division held that clause unenforceable because it lacked mutual assent and was incompatible with the Probate Code's grant of authority to the Superior Court over Will disputes.
In Dyevich, there was no Will clause at issue. All the parties — represented by counsel, fully aware of the pending litigation — sat down and agreed among themselves to submit their disputes to an arbitrator. That is a voluntary, bilateral agreement to arbitrate. It is exactly the kind of arrangement that New Jersey's arbitration statute is designed to support and enforce.
The rule, stated plainly: a testator cannot force beneficiaries into arbitration through a Will. But parties to an active estate dispute can agree — on their own terms, with full knowledge — to resolve that dispute in arbitration. Once they do, the resulting award carries the weight of a court judgment and can be vacated only in very limited circumstances.
What This Means for NJ Families Navigating Estate Disputes
Estate disputes are expensive, slow, and exhausting — especially when, as in the Dyevich family's case, multiple cases are pending at once and the litigation involves contested guardianships, financial accounts, and real property. Voluntary arbitration can be a practical path to resolution that offers privacy, speed, and finality. New Jersey courts strongly support it.
But finality cuts both ways. The same deference that makes an arbitration award powerful also makes it very difficult to undo. The New Jersey Supreme Court has described private arbitration awards as subject to "an extraordinarily deferential standard of review." Rappaport, 260 N.J. at 250. An award will not be overturned simply because a court might have decided the facts or the law differently. Courts are not in the business of second-guessing arbitrators.
If you are involved in an estate dispute and someone suggests arbitration as a way to resolve it, understand what you are agreeing to in advance. Once the arbitration is complete and the award is entered, your options to challenge it are narrow. You will not succeed by pointing to the other side's bad behavior during the proceedings — that is a matter for the arbitrator, not for the courts, after the fact.
The bottom line from Dyevich is this: arbitration works in the estate context when the parties choose it freely and with full information. What does not work — as Hekemian makes clear — is a testator trying to impose that choice on beneficiaries from beyond the grave.
by Jose D. Roman | Jun 30, 2026 | Estate Administration, Estate Planning, Intestate Estate (No Will), Last Will and Testament, Probate
A New Jersey appellate decision decided June 29, 2026 — In the Matter of the Estate of Agnieshka Burke — offers a stark illustration of what can happen when someone dies while a divorce is still pending. The case involves a $500,000 life insurance policy, a Will that named the estranged husband as executor and sole beneficiary, and a fight between that husband and the decedent's sister over who gets what. The court's ruling touches on three issues that matter to anyone who is separated, going through a divorce, or simply has not updated their estate plan in years: whether your Will still works the way you intended, who controls your estate when you die, and what happens to assets like life insurance that pass outside your Will entirely.
Dying With a Divorce Pending
Under New Jersey law, a divorce action ordinarily ends when a final judgment of divorce is entered. If one spouse dies before that happens, the divorce proceedings have traditionally abated — meaning they simply stop. The surviving spouse inherits under the Will or under the intestacy laws if there is no Will, and the court's power to divide marital property (called equitable distribution) disappears.
The Legislature changed this rule in January 2024 by adding subsection (h)(2) to the equitable distribution statute, N.J.S.A. 2A:34-23. The new provision states that if a divorce complaint has been filed and either party dies before a final judgment is entered, the court's authority to divide marital property does not abate. In Burke, the Appellate Division confirmed that this right belongs not just to a surviving spouse, but also to the estate of the spouse who died. In plain terms, if you file for divorce and then die before it is finished, your estate (acting through a personal representative) may still be able to pursue a share of the marital assets.
This is a significant development for anyone with a pending divorce. It means that death during divorce proceedings does not necessarily resolve the property dispute. It may simply transfer the fight to a different courtroom.
Your Executor May Have a Conflict of Interest
In Burke, Agnieshka had named her husband Jared as executor of her Will. After she died with the divorce still pending, Jared was appointed executor and also stood as the primary beneficiary under both her Will and life insurance policy. The court found this created an irreconcilable conflict of interest. As the Appellate Division put it, Jared's responsibilities to represent the estate's interests and his own personal interests were "directly adverse."
The court did not remove Jared as executor entirely, but it disqualified him from acting as executor in connection with the equitable distribution dispute — the exact proceeding where the estate's most valuable rights were at stake. It then ordered the Probate Part to appoint a substitute executor for that limited purpose, and noted that Agnieshka's Will had already named her sister as successor executor.
The lesson here is direct. If you are separated or in the middle of a divorce, your spouse is most likely still named in your Will as executor, beneficiary, or both. Unless your Will is updated or the divorce is finalized, that person retains legal authority over your estate when you die. New Jersey law does automatically revoke certain transfers to a former spouse after a divorce is complete under N.J.S.A. 3B:3-14, but that protection does not kick in until the divorce is actually finalized. Separation alone changes nothing.
Non-Probate Assets Are a Separate Problem
Most people assume their Will controls everything they own. It does not. Assets that pass by beneficiary designation — life insurance, retirement accounts, payable-on-death bank accounts — transfer directly to the named beneficiary regardless of what the Will says. These are called non-probate assets, and they pass outside of probate entirely.
In Burke, Agnieshka's $500,000 life insurance policy named Jared as the sole beneficiary. The couple was separated and a divorce was pending, but she had not changed the designation. The Appellate Division sent the question of who is entitled to those proceeds to the Family court for resolution, but it was careful to note that Jared remains the named beneficiary and that no settlement agreement or final divorce judgment existed that would automatically revoke that designation under N.J.S.A. 3B:3-14.
This is where many people are caught off guard. You can update your Will, but if you forget to change the beneficiary on your life insurance policy or your 401(k), those assets still pass directly to your estranged spouse. The only way to ensure your beneficiary designations reflect your current intentions is to change them directly with the insurance company, bank, or plan administrator — a Will cannot override them.
What You Should Do Now
If you are separated or going through a divorce, your estate plan needs immediate attention on several fronts. First, after consulting your divorce attorney, review and update your Will to name a new executor and new beneficiaries. Second, also after consulting your divorce attorney, change beneficiary designations on every account that carries one — life insurance, IRAs, 401(k)s, annuities, payable-on-death accounts. Third, review any powers of attorney and health care proxies that name your spouse as your agent. In New Jersey, the divorce statute does not automatically revoke a health care proxy naming a spouse, so your estranged husband or wife may still have the legal authority to make medical decisions for you if you become incapacitated. For more on how that works, see who makes medical decisions in New Jersey.
There are also Medicaid planning considerations that arise when a couple separates but does not yet divorce — particularly for couples where one spouse may need long-term care. Medicaid's spousal protection rules treat legally married couples as a unit for purposes of resource assessment, which can affect eligibility and planning options. For more on that issue, see Medicaid and divorce in New Jersey.
The Burke case is a reminder that separation is not a legal status that protects you or your estate. Until a divorce is final, your spouse remains your legal spouse for virtually every purpose that matters in estate planning. If your circumstances have changed, your documents need to change with them.
by Jose D. Roman | May 19, 2026 | Estate Administration, Irrevocable Family Trusts, Probate, Trusts
If you have spent any time researching estate planning online, you have likely encountered some version of the following warning: probate is expensive, slow, and public — and you must plan aggressively to avoid it. Living trusts are pitched as essential. Horror stories of estates consumed by legal fees are used to justify the purchase of planning products.
In many states, that concern is legitimate. In California, for example, probate attorney fees are set by statute at a percentage of the gross estate and can easily reach tens of thousands of dollars on a modest home. In New Jersey, the situation is quite different. For the typical New Jersey estate, probate is a straightforward administrative process that is neither prohibitively expensive nor particularly complicated. Understanding what probate actually involves here — rather than what it involves in other states — should inform whether you need to go out of your way to avoid it.
What Probate Actually Looks Like in New Jersey
Probate in New Jersey is the legal process of validating a will, appointing an executor, and overseeing the distribution of a deceased person's estate. It is governed by Title 3B of the New Jersey Statutes and administered through each county’s Surrogate’s Court. In most uncontested cases, probate in New Jersey is largely an administrative process handled by the Surrogate’s Court staff — not a formal court hearing before a judge.
Here is what the process typically looks like for a straightforward NJ estate:
- Wait ten days after death — New Jersey law prohibits probate from being initiated within ten days of death, though paperwork can be filed in advance
- File the original Will and a death certificate with the county Surrogate’s Court
- Pay the filing fee — typically $100 to $200 depending on the length of the will and associated services requested
- Receive Letters Testamentary from the Surrogate, which authorize the executor to act on behalf of the estate
- Send notice of probate to all beneficiaries and next of kin within 60 days
- Notify creditors, pay valid debts, obtain any required NJ inheritance tax waivers, and distribute remaining assets to beneficiaries
In most cases, there is no court appearance required. The Surrogate’s staff process the application, issue the Letters, and the executor takes it from there. The process is bureaucratic, not adversarial.
What Does Probate Cost in New Jersey?
This is where New Jersey diverges most sharply from the states that give probate its frightening reputation. Court costs in New Jersey are minimal — the filing fees range from $100 to $200, which typically includes a small per-page fee for longer wills and a nominal fee for each short certificate (Letters Testamentary) issued.
Attorney fees are not set by a statutory formula in New Jersey the way they are in California or Florida. New Jersey uses a reasonable compensation standard, meaning attorneys may charge an hourly or flat fee, subject to the reasonableness standard. For a simple, uncontested estate — a house, some bank accounts, standard beneficiaries — attorney fees for probate typically range from $2,000 to $5,000. That is a meaningful cost, but it is not the ruinous expense that probate-avoidance marketing would suggest.
Executor commissions are set by statute in New Jersey at 5% on the first $200,000 of estate assets, 3.5% on the next $800,000, and 2% on amounts over $1,000,000, plus 6% of estate income. These commissions are payable to the executor — who is frequently a family member — and can be waived in whole or in part. In practice, family member executors routinely waive their commission entirely, particularly in smaller estates.
How Long Does NJ Probate Take?
The timeline for New Jersey probate is driven primarily by two fixed waiting periods, not by court backlog or procedural complexity. The first is the ten-day waiting period before the Will can be admitted. The second — and the one that sets the practical minimum — is the nine-month creditor claims period. Creditors of the estate have nine months from the date of death to file claims against the estate. Prudent executors wait for this period to pass before making final distributions.
For a straightforward estate with no tax issues, no disputes, and Class A beneficiaries only (spouse, children, grandchildren, parents), the total timeline is typically nine to twelve months. For estates requiring NJ inheritance tax returns — applicable to Class C and D beneficiaries such as siblings and more distant relatives — the timeline can extend to twelve to eighteen months due to the time required to obtain a tax clearance.
This is not fast. But it is not the multi-year ordeal that probate can become in other states or in contested New Jersey cases. For a family that is not in a hurry to sell real estate or access inherited funds, nine to twelve months is manageable.
When Probate IS a Legitimate Concern in New Jersey
The argument that probate avoidance is unnecessary for most NJ estates should not be read as an argument that probate is never a problem. There are specific circumstances where avoiding probate provides real, tangible benefits in New Jersey.
- Real estate in multiple states: If a decedent owns real property in more than one state, each state where property is located requires its own ancillary probate proceeding. This multiplies costs and complexity significantly. A trust that holds out-of-state real estate may avoid ancillary probate in each additional state.
- Privacy concerns: Probate is a public process. Wills admitted to probate become public records. In some counties, probate filings are searchable online. For individuals who prefer that the terms of their estate plan remain private — particularly the amounts left to specific beneficiaries — a trust-based plan keeps that information out of the public record.
- Blended families and anticipated disputes: When family dynamics suggest a heightened risk of Will contests or beneficiary disputes, probate provides a forum for those disputes to play out — which is both a feature and a liability. A trust-based plan can reduce the opportunities for litigation, though it does not eliminate them entirely.
- Incapacity planning: Placing assets in a trust serves a dual purpose: it avoids probate at death and provides a framework for managing assets during incapacity. For individuals who are concerned about future cognitive decline or who do not want to rely solely on a Power of Attorney for asset management, trusts can provide a more robust incapacity planning vehicle.
- NJ inheritance tax and Class C/D beneficiaries: Probate itself does not eliminate the inheritance tax, but the administration of estates with non-exempt beneficiaries is more complex and time-consuming. Proper planning can minimize the tax exposure, which is a legitimate goal independent of probate avoidance.
What Most NJ Families Can Use Instead of a Trust
For the typical New Jersey family — a married couple with children leaving their estate to each other and then to their children — several non-probate transfer mechanisms accomplish most of what trusts would achieve at far lower cost and complexity:
- Beneficiary designations: Life insurance, retirement accounts (IRA, 401(k)), and annuities pass directly to named beneficiaries outside of probate. Keeping these designations current is one of the most important and most overlooked aspects of estate planning.
- Payable-on-death (POD) and transfer-on-death (TOD) designations: Bank accounts and brokerage accounts can be set up with POD or TOD designations that direct the assets to named beneficiaries at death without going through probate. This is simple, free, and effective for liquid assets.
- Joint tenancy with right of survivorship: Real property held jointly with right of survivorship passes automatically to the surviving owner at death without probate.
- A well-drafted Will: For assets that do pass through probate, a clear and current will ensures that the Surrogate’s Court process is as smooth and efficient as possible. An outdated Will, or a Will that conflicts with beneficiary designations, creates the kind of confusion that turns routine probate into contested probate.
When a Trust Does Make Sense in New Jersey
None of this means that trusts are never appropriate for New Jersey residents. They are a useful and sometimes essential planning tool. The point is that the decision should be driven by the client’s actual circumstances, not by generalized fear of probate.
A trust is worth serious consideration in New Jersey when:
- The estate includes real property located in other states
- The client has strong privacy concerns about public probate records
- The client wants a robust incapacity planning structure beyond a Power of Attorney alone
- The family situation is complex — blended family, estranged beneficiaries, or a high risk of disputes
- The estate is large enough that the cost of creating and funding a trust is proportionally modest relative to the overall estate value
A trust is generally not worth the additional upfront cost — typically $2,000 to $5,000 or more for a properly drafted and funded trust, plus ongoing maintenance — when the estate is straightforward, the beneficiaries are Class A, and there is no out-of-state real property.
The Real Purpose of Estate Planning in New Jersey
This is perhaps the most important point of this post. For most New Jersey families, the primary reasons to engage in estate planning have little to do with probate avoidance. They have to do with:
- Incapacity planning: A Durable Power of Attorney, Healthcare Proxy, and Living Will are essential documents that have nothing to do with probate. They govern what happens if you lose the ability to make decisions for yourself. These documents are arguably more important than any probate-avoidance strategy.
- Medicaid planning: For families whose primary concern is long-term care costs and asset preservation, Medicaid planning — irrevocable trusts, spend-down strategies, spousal protections — is the more urgent priority. Probate avoidance is secondary to the question of whether assets will be consumed by long-term care costs or subject to Medicaid estate recovery.
- Clarity and family harmony: A clear, current Will that accurately reflects your wishes and is understood by your family is worth more than an elaborate trust structure that no one understands. The most expensive probate is a contested one.
- Tax planning for non-exempt beneficiaries: If your estate will pass to siblings, nieces, nephews, or more distant relatives, NJ inheritance tax planning is a legitimate priority that is entirely separate from probate avoidance.
Final Thoughts
New Jersey probate is not the monster it is made out to be in states where attorney fees are set as a percentage of the gross estate and formal court proceedings are required. For the typical New Jersey estate passing to a spouse and children, probate is a manageable administrative process with modest costs and a predictable timeline.
That does not mean estate planning is unimportant — it means that the goals of estate planning in New Jersey should be properly identified. Incapacity planning, Medicaid asset protection, clarity of testamentary intent, and appropriate beneficiary designations are the real priorities for most families. Probate avoidance is a secondary consideration that may or may not be worth pursuing depending on the specific facts.
If you are unsure whether your current estate plan — or lack of one — is serving your family’s actual needs, contact an experienced estate planning attorney.
by Jose D. Roman | May 12, 2026 | Estate Administration, Estate Planning, Last Will and Testament, Probate, Trusts
Can a testator include an arbitration clause in their Will that forces beneficiaries to resolve disputes in a private arbitration forum rather than a New Jersey court? For the first time, the New Jersey Appellate Division has answered that question directly — and the answer is no.
In a case published on April 21, 2026, In re Estate of Samuel P. Hekemian, the Appellate Division held that an arbitration provision contained in a Last Will and Testament is unenforceable under New Jersey law.
Background: The Hekemian Family Estate
Samuel P. Hekemian died testate in August 2018, survived by his wife Sandra and their four adult sons: Peter, Jeffrey, Mark, and Richard. His 2002 Last Will and Testament (2002 LWT) appointed his son Peter and longtime advisor Edward G. Imperatore, Esq. as co-executors and co-trustees of three testamentary trusts established under the Will.
The 2002 LWT contained an arbitration clause providing that any dispute regarding the interpretation of the Will or its administration “shall be submitted for settlement by arbitration.” The clause declared arbitration to be “the exclusive remedy” for resolving such disputes and stated that the arbitrator’s decision “shall be final and binding upon all interested parties and shall not be appealable to any court of law.”
The same arbitration provision appeared in reciprocal Wills executed simultaneously in 2001 by Samuel and Sandra that were prepared by the same New York attorney. When Sandra and Richard later filed exceptions to the co-executors’ first intermediate accounting of the estate, the co-executors moved to compel arbitration.
A Second Look at the Same Arbitration Clause
This was not the first time the arbitration provision had been challenged. In an earlier unpublished opinion, the Appellate Division had affirmed the denial of a motion to compel arbitration of Richard’s request for an accounting, finding that the clause was not the product of mutual assent under traditional contract principles and that it failed to explain that Richard was relinquishing his right to bring a claim in court. At that time, however, the court stopped short of declaring the arbitration provision categorically unenforceable.
In the intervening period, Sandra joined the litigation and filed her own exceptions to the co-executors’ accounting. Unlike Richard, Sandra had received distributions under the 2002 LWT. The co-executors argued this distinguished her situation and that her participation in the Will’s benefits, combined with the execution of the reciprocal 2001 Wills, established the mutual assent necessary to compel her to arbitrate. The trial court rejected that argument and denied the motion. The co-executors appealed.
The Court’s Holding: Two Independent Grounds
The Appellate Division affirmed the trial court’s denial, but went further than the lower court by issuing a definitive ruling on a question of first impression: arbitration clauses in testamentary instruments are unenforceable under New Jersey law. The court rested its holding on two independent and mutually reinforcing grounds.
1. Lack of Mutual Assent
An agreement to arbitrate, like any contract, requires mutual assent — a knowing and voluntary waiver of the right to pursue claims in court. The court reaffirmed its earlier conclusion that the arbitration clause failed to explain, in clear and unambiguous terms, that interested parties were relinquishing their right to sue. Citing Atalese v. U.S. Legal Servs. Grp., L.P., 219 N.J. 430 (2014), the court emphasized that “the point is to assure that the parties know that in electing arbitration as the exclusive remedy, they are waiving their time-honored right to sue.”
The co-executors argued that Sandra’s simultaneous execution of a reciprocal Will containing the same arbitration clause demonstrated her assent. The court rejected this. While a meeting of the minds is not required for a Will to be effective — because a Will is a unilateral disposition of property, not a contract — that principle cuts in the opposite direction for arbitration purposes. Precisely because a Will is unilateral, neither Sandra nor any other interested party was afforded the opportunity to consider or elect to waive their right to proceed in court. The court was not satisfied that the simultaneous execution of reciprocal Wills, without more, established the kind of informed, knowing assent required for a valid arbitration agreement.
2. Inconsistency with the Probate Code
Even if the assent problem could be overcome, the court held that arbitration clauses in Wills are incompatible with New Jersey’s statutory framework for estate administration. The Probate Code, N.J.S.A. 3B:1-1 et seq., vests the Superior Court with comprehensive authority over Will disputes, trust administration, and fiduciary accountings. The court catalogued the relevant provisions, including but not limited to:
- N.J.S.A. 3B:2-2 grants the Superior Court "full authority to hear and determine all controversies respecting wills, trusts[,] and estates, and full authority over the accounts of fiduciaries, and also authority over all other matters and things as are submitted to its determination under this title."
- N.J.S.A. 3B:3-17 during probate, the Superior Court "may take depositions to wills[,] admit the same to probate, and grant . . . letters testamentary or letters of administration with the will annexed."
- N.J.S.A. 3B:3-18 requiring that to "prove the transfer of any property or to nominate an executor, a will must be admitted to probate."
Against this backdrop, the court reaffirmed and expressly adopted what had been an observation in its prior unpublished opinion: “arbitration clauses that eliminate the courts’ expected role in resolving Will disputes are inconsistent with the detailed statutory scheme vesting the superior courts with the authority to adjudicate such issues.” Accordingly, enforcement of an arbitration clause in a testamentary instrument is contrary to both the Probate Code and New Jersey’s contract principles. The court held:
We conclude enforcement of an arbitration clause in a testamentary instrument is contrary to the court’s role underlying the Probate Code and inconsistent with our State’s contract principles.
What This Means for Estate Planning in New Jersey
The Hekemian decision settles a question that had been lingering in New Jersey estate practice for years. Estate planners and their clients should take note of several practical implications.
- Arbitration clauses in Wills are unenforceable in New Jersey. Regardless of a testator’s intent, an arbitration provision in a Last Will and Testament cannot compel beneficiaries, heirs, or other interested parties to resolve their disputes outside of court. Any such provision should be considered a nullity.
- Testamentary trusts are also covered. The court’s holding extends to disputes concerning trusts created under a Will, not merely the Will itself. The arbitration clause in the Will purported to cover disputes “regarding the interpretation of this Will and the trusts created hereunder” — both were held unenforceable.
- The result is the same regardless of mutual assent. Even if a testator and their spouse executed reciprocal Wills containing identical arbitration clauses, and even if the surviving spouse received benefits under the Will, that is insufficient to establish the knowing, voluntary waiver of court rights required under Atalese.
- Inter vivos trusts are a different question. The Hekemian decision addresses testamentary instruments — Wills and trusts created by Wills. Arbitration clauses in standalone inter vivos trusts, which are contractual instruments, may be treated differently.
- Will disputes belong in court. Beneficiaries and interested parties who find themselves in estate disputes in New Jersey have a right to litigate those disputes in the Superior Court, Chancery Division, Probate Part — and a testator cannot take that right away through a provision buried in their Will.
A Practical Note for Families
For families navigating an estate dispute in New Jersey, the Hekemian decision is significant. If a co-executor or trustee attempts to invoke an arbitration clause in a Will to divert your dispute out of court, that clause is unenforceable. You are entitled to pursue your claims — whether exceptions to an accounting, removal of a fiduciary, or other relief — in the Superior Court under the full protections of New Jersey law.
For those in the estate planning process, this decision underscores the importance of working with an experienced New Jersey estate planning attorney who stays current with developments in the law. Estate planning documents should reflect the current legal landscape, not aspirational provisions that courts will not enforce.