In one of our previous blog posts we discussed the benefits of estate planning for New Jersey residents. While there are many advantages of creating an estate plan before it's too late, individuals should be aware of the most common estate planning mistakes and learn how to prevent these errors.
Many individuals create an estate plan in an effort to ease the burden for their family once they pass away. Unfortunately, many people make mistakes or errors in their estate plans that can lead to disputes that result in more time and money being spent to fix the mistakes.
So, what can you do to avoid making common estate planning mistakes? Below is a list of steps to take to reduce the chances of making an estate planning error.
- Create and coordinate your estate planning documents to make sure documents do not conflict with each other.
- Monitor and revise beneficiary designations. Different estate planning documents may have different beneficiaries and it is important to review and rename beneficiaries as needed.
- Be aware of sate property laws and title your assets and property accordingly.
- Make estate planning documents available and accessible to family and beneficiaries.
- Review and understand state and federal estate and inheritance tax laws.
Following these tips can make you more aware of the potential mistakes many people make when creating their estate plan and help you make the right decisions when planning for your estate that will ease the burden and stress for your family in the future.
Individuals or families who believe their estate plan may have any error should work with an estate planning attorney to discuss potential options and how to fix the mistakes in their estate plan.
Source: Life Health Pro, "10 steps for avoiding estate planning mistakes," Ed McCarthy, June 6, 2013