Common Estate Planning Mistakes to Avoid in NY & NJ
Estate planning is essential for families in New York and New Jersey who want to protect their assets, minimize taxes, and ensure their wishes are honored. Yet despite its importance, many individuals make avoidable mistakes that can lead to probate delays, family disputes, and unexpected tax liabilities. Whether you are just starting your estate plan or revisiting an existing one, understanding these common pitfalls can help you avoid costly consequences.
At Steketee Law Firm, our New York and New Jersey estate planning lawyers can help you. We build personalized plans that fit your needs and protect your beneficiaries after you are gone. Let us help you by scheduling a consultation today.
Mistake #1: Not Having an Estate Plan at All
One of the most frequent and damaging errors is failing to create an estate plan. There is an old saying: If you don’t make a plan the government will make one for you. Without a will or trust, your assets will be distributed according to state law, which may not reflect your intentions. In both NY and NJ, this can result in:
- Probate delays and court involvement
- Unintended beneficiaries receiving assets
Begin your estate planning early, regardless of age or wealth.
Mistake #2: Failing to Update Your Documents
Life changes such as marriage, divorce, birth of children, or relocation can render your estate plan outdated. In New Jersey, for example, acquiring property in another state or changing financial status may affect how your estate is handled.
Review your estate plan every two to five years, after any major life event, or as situations change. Update beneficiary designations, asset lists, and legal documents to reflect your current wishes.
Mistake #3: Overlooking Non-Probate Assets
Assets like retirement accounts, life insurance policies, and jointly owned property can pass outside your will. In both NY and NJ, beneficiary designations on those accounts or property can override your estate plan. If these are outdated, your assets may go to unintended recipients.
It is important to coordinate your beneficiary designations with your overall estate plan. Ensure that account titles and joint ownerships align with your distribution goals.
Mistake #4: Ignoring State-Specific Tax Rules
New York and New Jersey have distinct estate and inheritance tax laws. While NJ eliminated its estate tax in 2018, it still imposes an inheritance tax on certain beneficiaries. For example:
- Class A beneficiaries (spouses, children, parents) are exempt – no inheritance tax;
- Class C and D beneficiaries (siblings, nieces, friends) may owe 11–16%;
- Step-grandchildren are not exempt, unlike stepchildren.
New York, on the other hand, has an estate tax with a “cliff” threshold, exceeding the exemption by even a small amount can trigger tax on the entire estate.
Work with an estate planning attorney familiar with NY and NJ laws. Strategic gifting, trust planning, and beneficiary structuring can help minimize tax exposure.
Mistake #5: DIY Estate Planning
Using generic online templates or fill-in-the-blank forms may seem cost-effective, but they often fail to meet state-specific legal requirements. Improper execution, lack of customization, and overlooked provisions can invalidate your documents.
Consult a qualified estate planning attorney. Professional guidance ensures your documents are legally sound, tailored to your needs, and compliant with NY/NJ statutes.
Mistake #6: Not Planning for Incapacity
Estate planning isn’t just about death, it is also about protecting yourself during life. Without proper powers of attorney and healthcare directives, your loved ones may need court approval to manage your affairs.
Include durable powers of attorney and advance directives in your estate plan. These documents authorize trusted individuals to make financial and medical decisions if you become incapacitated.
Avoid Common Estate Planning Mistakes by Working with an Experienced Estate Planning Lawyer
Estate planning is a dynamic process that requires attention to detail and awareness of state-specific laws. By avoiding these common mistakes, families in New York and New Jersey can protect their legacy, reduce legal complications, and ensure their wishes are honored. Whether you are updating an old plan or starting fresh, professional guidance is key to building a secure and effective estate strategy.
Our team at Steketee Law Firm stands ready to help. Contact us today for a consultation.