Overview
A strong estate plan protects your family and your assets, but only if it is done correctly. At Simon Law Group, we regularly see simple mistakes that cause major complications later. These errors are often the result of procrastination, reliance on generic documents, or a failure to update plans as circumstances change. Understanding the most common pitfalls can help New Jersey families avoid unnecessary expense, delay, and family conflict.
Using DIY Wills or Online Templates
Do-it-yourself wills and online templates rarely meet the specific requirements of New Jersey law and frequently leave families with costly disputes. Under N.J.S.A. 3B:3-1, a will must be in writing, signed by the testator, and attested by at least two witnesses who observed the signing or the testator’s acknowledgment of the signature. Many online templates fail to include proper execution instructions, resulting in invalid wills.
Beyond execution, DIY documents typically overlook New Jersey-specific considerations, including the state’s inheritance tax, which applies to transfers to certain non-lineal descendants at rates ranging from 11 to 16 percent under N.J.S.A. 54:34-1 et seq. They also rarely address complex family situations, such as blended families, special needs beneficiaries, or the proper use of trusts to control distributions.
Mis-Titled Assets
Your estate planning documents only work if your assets are titled correctly. A common mistake is holding property in joint tenancy with right of survivorship, which overrides the provisions of your will. If you intend for your assets to pass through your will or trust, but your bank accounts, real estate, or investment accounts are held jointly, the joint owner receives those assets automatically upon your death, regardless of what your will says.
Similarly, outdated deeds, improperly titled business interests, and accounts that should have been transferred to your trust but were not can all defeat your planning intentions. Proper coordination between your estate planning attorney and your financial institutions ensures that your asset titling aligns with your overall plan.
Unfunded Trusts
Creating a trust without transferring assets into it is one of the most common and most damaging estate planning errors. An unfunded or partially funded trust does not avoid probate, does not protect assets from creditors, and does not provide the management and distribution benefits for which the trust was created. The trust is merely a legal container, and until assets are placed inside it, the container is empty.
Funding a trust requires changing the title of assets from your individual name to the name of the trust. This includes executing new deeds for real estate, changing the beneficiary designations on life insurance and retirement accounts where appropriate, and retitling bank and investment accounts. An experienced New Jersey estate planning attorney should guide you through this process to ensure it is completed correctly.
Outdated Beneficiary Designations
Beneficiary designations on retirement accounts, life insurance policies, and annuities override the instructions in your will. If you named your spouse as the beneficiary of your 401(k) twenty years ago and have since divorced and remarried, your ex-spouse may still receive those funds unless you update the designation. Under N.J.S.A. 3B:3-15, a divorce revokes provisions in favor of a former spouse, but this statute does not automatically change beneficiary designations on non-probate assets.
After major life events, including marriage, divorce, birth, death of a beneficiary, or significant changes in assets, you should review all beneficiary designations to ensure they reflect your current wishes.
Missing Powers of Attorney
Without properly executed financial and medical powers of attorney, your family may need to file a guardianship action in court to manage your affairs if you become incapacitated. This process is expensive, time-consuming, and public. Under New Jersey’s Uniform Power of Attorney Act, N.J.S.A. 46:2B-8.1 et seq., a properly drafted power of attorney allows a trusted person to step in immediately during an emergency without court intervention.
Key Takeaways
- DIY wills often fail to meet New Jersey’s execution requirements and overlook state-specific tax issues
- Jointly titled assets and outdated beneficiary designations override the provisions of your will
- An unfunded trust provides no protection until assets are properly transferred into it
- Out-of-date beneficiary designations can cause assets to go to unintended recipients
- Powers of attorney prevent the need for costly guardianship proceedings during incapacity
Reviewed by Britt J. Simon, Esq., Managing Partner — Simon Law Group, LLC — May 2026
The content on this website is for general informational purposes only and is not intended as legal advice. Every case is different. You should consult with a qualified attorney before making any legal decisions. Contacting us through this website does not create an attorney-client relationship. Prior results do not guarantee a similar outcome.