Planning for the future is not an easy task. New Jersey adults often avoid this process because they don’t believe it’s necessary for their situation. In reality, estate planning is a prudent step for individuals of all ages and income levels. There are significant benefits to taking this step regardless of your age, health status or job title. One of the most significant benefits is the peace of mind it can give you regarding your future and your assets.
You may not have an estate plan, or you may have one you haven’t updated in awhile. It is beneficial not to delay in making the necessary plans or updates you need for long-term security. Life is unpredictable, and you have the right to a say in what happens to your wealth, belongings and health care.
Common planning missteps
Estate planning can be a complex process, especially for someone who does not have legal experience. Trying to handle these matters on your own can lead to mistakes that may prove costly in the future. If you are thinking about your plans for the future, avoid the following missteps:
- The biggest estate planning mistake is failing to have an estate plan in the first place. This can cause significant complications for loved ones after your passing.
- It is a mistake to name a minor as a beneficiary. There are more effective ways to ensure minor heirs get the right assets in an appropriate manner after your passing.
- Failing to update beneficiaries as life changes is a mistake. You want to consider whom to receive assets from your estate and how to get them to that person as simply as possible.
- Failing to consider the benefits of a trust is a common estate planning mistake. Trusts can allow you to set aside and protect assets for a specific use, and these assets do not have to go through probate.
- Many make the mistake of failing to consider how they can use their estate plans for tax benefits. This can be beneficial to you as well as your loved ones.
It is critical to be thoughtful with every decision you make when creating an estate plan. It is also in your interests to review your estate plans every few years to ensure you make appropriate updates according to various life changes. This includes divorce, remarriage and the birth of new children.
