Estate planning can be daunting, but it is necessary. Previously, we spoke about

the 3 essential items that need to be in a New Jersey estate plan.  However, it is just as important to know what you need to avoid.

At Hymanson Law, we work with clients regarding estate planning, trust administration, business law, and more. We understand the importance of having an estate plan, and we guide clients through the process so that estate-planning mistakes are avoided.

These are 5 common estate planning mistakes to you need to avoid.

  • Thinking you don’t need an estate plan. Estate plans are for everyone. If you have any assets you want to leave to family or friends, you must have an estate plan. You must also have an estate plan to prepare for your incapacity.
  • Errors with beneficiaries. A beneficiary is the person who receives money or assets after your death. It is important to always keep beneficiary designations current. For example, if your divorced spouse is named as the beneficiary of your retirement plan or life insurance, your former spouse will receive those assets if you do not update your beneficiary designations after divorce. Also, you must name contingent beneficiaries.
  • Not considering guardianship concerns. When leaving assets to a minor, be aware of who will handle the money for the minor. The person handling the money for the minor may not be responsible or that person may use the money for themselves.
  • Too many stipulations. Setting forth too many stipulations in your will can interfere with an orderly distribution of your estate. However, stipulations regarding the distribution of your estate are necessary based upon your family dynamics.
  • Not adding a residuary clause. Have you ever had a feeling that you were forgetting something? You may choose to leave assets to specific individuals, but you may not consider who gets the remainder of your estate. A residuary clause ensures that the remainder of your estate is distributed to your chosen beneficiaries and not to individuals as determined by the State.

There are many factors to consider when going through the estate planning process, but the most important factor is to start. If you need help starting or if you are at any point in the process contact Hymanson Law today!