Creating an estate plan is one of the most important steps in protecting your legacy and your loved ones’ futures. Yet even well-intentioned individuals can make mistakes that complicate the administration of their estates or leave their wishes unclear. By understanding the most frequent missteps and how to avoid them, you can ensure your plan truly reflects your goals and complies with New Jersey law.
Failing to Keep Your Estate Plan Up to Date
An estate plan should evolve as your life changes. Major events such as marriage, divorce, the birth of a child, or the purchase of a home often require updates. If your plan does not reflect your current circumstances, outdated provisions could lead to disputes or unintended outcomes.
We recommend reviewing your documents every few years, or whenever a significant life event occurs, to confirm they still align with your wishes and comply with current laws.
Overlooking Beneficiary Designations
Many assets, including life insurance policies, retirement accounts, and payable-on-death accounts, transfer directly to the named beneficiaries. If those designations are outdated or inconsistent with your will, your estate plan may not function as intended.
Take time to review all beneficiary designations to ensure they match your broader estate planning goals and avoid conflicts among heirs.
Not Planning for Incapacity
Estate planning is not only about distributing assets after death—it’s also about preparing for the unexpected. Without a durable power of attorney or healthcare directive, your family may need to seek court approval to make medical or financial decisions on your behalf.
By including these documents, you can choose trusted individuals to manage your affairs if you become unable to do so yourself.
Failing to Fund Your Trust
A trust only works if it is properly funded. Many people create a trust but never transfer ownership of their assets into it. This oversight can result in those assets passing through probate, defeating one of the main benefits of having a trust.
We help clients identify which assets should be retitled in the name of the trust to ensure their estate plans operate as intended.
Leaving Out Clear Instructions for Personal Property
Family heirlooms and sentimental items can cause unexpected tension if your will does not clearly specify who should receive them. Even if these items hold little financial value, they often carry significant emotional weight.
Consider making a separate list or memorandum that details how personal property should be distributed. This can help prevent misunderstandings and maintain family harmony.
Neglecting to Address Taxes and Debts
In New Jersey, estate and inheritance tax considerations can impact how much your beneficiaries ultimately receive. Failing to plan for these obligations can reduce the value of your estate.
Working with an attorney who understands local and federal tax implications can help ensure that your plan minimizes liabilities and preserves more of your estate for those you care about.
Trying to Handle Everything Without Legal Guidance
Online templates and do-it-yourself tools may seem convenient, but they often overlook the nuances of state law or the complexities of blended families, business ownership, and tax planning. Small errors in wording or execution can lead to big problems later.
A knowledgeable estate planning attorney can help ensure your documents are valid, comprehensive, and tailored to your unique needs.
Taking the Next Step Toward a Secure Plan
Even a minor oversight can create significant challenges for your loved ones later. At E.A. Goodman Law, LLC, we work closely with clients throughout New Jersey to create estate plans that are clear, enforceable, and aligned with their personal and financial goals.
Contact us today to schedule a consultation and learn how we can help you avoid common mistakes and ensure your wishes are carried out with confidence.
Frequently Asked Questions
What happens if I die without an estate plan in New Jersey?
If you pass away without a will or trust, your assets are distributed according to New Jersey’s intestacy laws. This means the state determines who inherits your property, which may not reflect your wishes or account for blended family situations.
How often should I update my estate plan?
You should review your plan every three to five years or after major life events, such as marriage, divorce, a new child, or a significant change in assets. Regular updates help ensure your documents remain current and legally sound.
Can I make handwritten changes to my will?
Handwritten edits, even if initialed or dated, can cause confusion or invalidate portions of your will. It’s best to make formal updates with an attorney to ensure all changes are properly executed and legally enforceable in New Jersey.
Posted in: Estate Planning