Estate planning is one of the most important steps you can take to protect your family’s future. Yet, many people in New Jersey overlook key details, leading to costly mistakes that could jeopardize their assets and loved ones. In this guide, we’ll explore seven common estate planning mistakes and how working with an experienced attorney at Cohler Law can help you safeguard your legacy.
1. Failing to Create an Estate Plan
Many New Jersey residents delay estate planning, thinking it’s only necessary for the wealthy or elderly. This misconception can have dire consequences. Without a will or trust, your assets may be distributed according to New Jersey’s intestate succession laws, potentially excluding your intended beneficiaries. By creating a personalized estate plan, you ensure your wishes are honored and provide your loved ones with clarity during a challenging time.
Action Tip:
- Start your estate plan today, even if you think your assets are modest. An experienced attorney can tailor your plan to your unique needs.
- Additionally, consider including detailed instructions for distributing sentimental items to avoid family disputes.
2. Overlooking the Importance of Trusts
While a will is an essential part of any estate plan, it’s often not enough. Trusts can offer additional benefits, such as avoiding probate, reducing estate taxes, and protecting assets for your heirs. Many families in New Jersey can benefit from revocable living trusts, which allow you to retain control over your assets during your lifetime while providing clear instructions for their management after your death.
Action Tip:
- Work with a knowledgeable lawyer to determine whether a trust is right for you. Trusts can be customized to meet specific family needs, such as special needs planning or creditor protection.
- Explore options like irrevocable trusts for asset protection or charitable trusts to leave a philanthropic legacy.
3. Not Updating Your Estate Plan
Life events such as marriage, divorce, the birth of a child, or significant financial changes should prompt a review of your estate plan. Outdated documents can lead to unintended consequences, such as assets being distributed to an ex-spouse or excluding new family members.
Action Tip:
- Schedule regular reviews of your estate plan—at least every three to five years or after any major life event—to ensure it reflects your current circumstances and wishes.
- Include provisions for unforeseen changes, such as updates to tax laws or new family dynamics.
4. Failing to Account for Digital Assets
In today’s digital age, many people forget to include online accounts, digital files, and cryptocurrencies in their estate plans. Without clear instructions, your loved ones may struggle to access these assets, or they may be lost entirely.
Action Tip:
- Create a digital asset inventory that includes account logins, passwords, and instructions for accessing and managing these assets. Include this inventory in your estate plan with the help of an attorney.
- Don’t forget to address social media accounts and how they should be managed or memorialized after your passing.
5. Ignoring Long-Term Care Planning
Long-term care can be a significant financial burden, especially in New Jersey where costs are high. Many people fail to address how they will pay for nursing home or in-home care, leaving their families to shoulder the expenses. Medicaid planning is a critical component of comprehensive estate planning and can help protect your assets from being depleted by healthcare costs.
Action Tip:
- Consult an attorney who specializes in Medicaid planning to explore strategies that can preserve your assets while ensuring you receive the care you need.
- Options like long-term care insurance or setting up an irrevocable Medicaid trust can provide additional protection..
6. Not Designating the Right Executors or Trustees
Choosing the wrong person to manage your estate or trust can lead to mismanagement, disputes, and delays. Executors and trustees should be trustworthy, organized, and capable of handling complex financial matters.
Action Tip:
- Discuss your options with an estate planning attorney. They can guide you in selecting the best candidates to fulfill these critical roles.
- Consider naming a professional fiduciary or co-trustees to ensure impartiality and expertise in managing your estate.
7. DIY Estate Planning
Using online templates or attempting to draft your own estate plan may save money upfront, but it often leads to costly mistakes. These generic documents may not comply with New Jersey laws or address your specific needs, leaving your assets and loved ones vulnerable.
Action Tip:
- Avoid DIY solutions. Work with an experienced attorney, such as Cohler Law, who can craft a customized estate plan that complies with New Jersey’s legal requirements and protects your legacy.
- Personalized legal advice can also help you identify tax-saving opportunities and ensure every detail is covered.
Why Choose Cohler Law for Your Estate Planning Needs?
At Cohler Law, we understand that estate planning is deeply personal. Our team takes the time to understand your unique circumstances and goals, providing tailored solutions that protect your assets and ensure your wishes are honored. From drafting wills and trusts to navigating complex Medicaid planning, we’re here to guide you every step of the way. We pride ourselves on providing compassionate, client-focused service that ensures your family’s future is secure.
Secure Your Legacy Today: Contact Cohler Law
Planning for the future is one of the most meaningful gifts you can give your family. At Cohler Law, we’re committed to helping New Jersey residents secure their assets, plan their estates, and protect their legacies. Whether you’re in Marlton, Cherry Hill, Mount Laurel, Moorestown, Voorhees, or other nearby areas, our dedicated attorneys are here to provide skilled guidance and compassionate support.
Call us today at 856-644-1969 or fill out our online contact form to schedule a consultation.
Don’t leave your family’s future to chance—start your estate planning journey with Cohler Law and gain the peace of mind you deserve. Let us help you build a plan that honors your values and secures your family’s well-being.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For personalized legal assistance, please consult an attorney.