Top Estate Planning Mistakes to Avoid

Estate planning isn’t just for wealthy or royal families. Estate planning ensures that your assets, including money, real estate and possessions, as well as your final arrangements, are handled according to your wishes. Estate planning also lifts burdens from loved ones when they are either caring for you or grieving your passing, says a recent article from MSN, “15 Estate Planning Mistakes That Can Cost Families $100,000+.” Mistakes in estate planning can lead to estate battles, expensive taxes and family fights. Here are the biggest mistakes to avoid:

No estate plan. Only about a third of all Americans have an estate plan. This includes last will and testament, trusts, guardianships and power of attorney documents. If you don’t have a plan, your assets will go through probate, and your ex-spouse and Uncle Sam could be your biggest heirs.

Neglecting to name beneficiaries. Not all your assets will pass through your will. Any account with a named beneficiary, like life insurance policies and investment and retirement accounts, goes directly to the person(s) named on the beneficiary designation form. If you forget to update your beneficiaries, your assets will go to whoever is on the document, even if it’s an ex-spouse.

Only having a will in your estate plan. Having a will is the first step in an estate plan, not the final step. Assets in the will still need to go through probate, where creditors can file claims on assets. An estate planning attorney can help determine what strategies you’ll need to protect your estate, including trusts or limited liability companies.

Not addressing taxes. If you gift assets to your children while you’re living, your generosity may result in them incurring a hefty tax bill. Most estate planning attorneys work with clients to ensure that their gifts are appropriately structured and timed to minimize taxes, including capital gains taxes and state estate taxes. They’ll also advise on how charitable giving can be part of your plan to minimize taxes.

Waiting to create an estate plan until you’re closer to retirement. Once you turn 18, you’re an adult, legally speaking. Parents cannot automatically be involved in medical or financial decisions if you are incapacitated. Anyone over 18 needs to have a healthcare directive and a power of attorney so that others can assist in case of an emergency. If you’re incapacitated and don’t have a healthcare power of attorney, loved ones won’t be able to be involved in your care or access insurance records.

Dismissing trusts as only applicable to the rich. If you have assets, you may need a trust. If your family includes a disabled person, you’ll need a Special Needs Trust. If you have minor children, you’ll want to establish a trust for their needs if something happens to you. Trusts are also used to safeguard assets from creditors. Don’t forget to fund any trusts created, or they won’t achieve their desired goals.

Not reviewing and updating your estate plan. Even if your life never changes, which is unlikely, your estate plan is a living document reflecting your life and needs to be updated every few years. Marriages, divorces, births, deaths, and changes in financial status are considered trigger events that require a review of your estate plan.

Your estate plan should align with your financial plan. The strategies employed in your estate plan should align with your financial situation, whatever it may be.

Not having conversations with loved ones about your estate plan. The worst time for your children to learn you’ve decided to give all your wealth to your cat is after you have passed. Managing expectations and giving heirs time to process your decisions is a gift of kindness.

Trying to do estate planning on your own is never a good idea. Estate planning is loaded with details you don’t know. However, an estate planning attorney does. Make an appointment with an experienced estate planning attorney in your state to prepare or update your estate plan. Future you will appreciate your taking this vital step, and so will those you love.

Estate planning is more than just filling out forms—it’s about making thoughtful decisions that protect your loved ones and avoid costly mistakes. At the Werner Law Firm, our experienced probate attorneys are here to help you build a plan that works for your unique situation and keeps your family out of unnecessary conflict and expense.

If you have any questions, schedule a free appointment with us through our online appointment page.

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Reference: MSN (June 24, 2025) “15 Estate Planning Mistakes That Can Cost Families $100,000+”