It is important for those who live in New Jersey to know what mistakes to avoid when they look into their estate planning options. People often try to get through these things as quickly as possible, but that can lead to errors. Taking a few minutes to look at some of the most significant mistakes that can be made during the estate planning process can eliminate problems and ensure that everything goes smoothly.
One huge mistake is to only have a will prepared. A will is important in and of itself, but there are other documents that are equally crucial that must be addressed as well. These three additional documents include a power of attorney that relates specifically to health care, a second power of attorney that relates to financial decisions, and a living will.
Another mistake could be not understanding the differences between these documents. For example, a living will can dictate whether or not you would like a doctor to use procedures that are considered to be life-sustaining tactics. If you are injured, for example, and you are in a coma, this will tells the doctors if they should use machines to help you breathe if you cannot do so on your own. It has nothing to do with how your assets will be divided, which can be put into a standard will.
Of course, the biggest mistake of all is simply not to do any planning. These documents need to be drafted and filed long before you need them. Putting them off only increases the chances that something will happen before they are written.
Source: Fox Business, "The Biggest Estate Planning Mistakes You Can Make" Kelly Trageser, Apr. 07, 2014