The Top Ten Common Estate Planning Mistakes
Avoiding these common mistakes can spare your family unnecessary stress
Estate planning is essential for anyone who wants their assets and possessions to be passed along smoothly to their chosen heirs. Beyond money, it’s about ensuring your wishes are clear and your loved ones are spared the added burdens of legal disputes or financial hardships after you’re gone.
Here are some of the most common estate planning mistakes and how to avoid them so you can create a solid legacy for your family.
What Is an Estate Plan?
An estate plan is a set of legal documents that determine how your assets will be handled after your death or if you become incapacitated. At its core, an estate plan typically includes:
✔️ A will
✔️ A trust
✔️ An advance healthcare directive
✔️ Power of attorney documents
Even if you don’t have significant assets, an estate plan is valuable—especially for expressing your wishes about medical care and potentially reducing family disputes.
Common Estate Planning Mistakes to Avoid
1. Procrastinating
Many people delay estate planning, assuming they’ll do it later in life. But life is unpredictable, and waiting can lead to unintended consequences. Without an estate plan:
Loved ones may face long legal processes to access your assets.
There may be no clarity on medical preferences if you become incapacitated.
Creating an estate plan early ensures you’re prepared for any situation.
2. Creating an Estate Plan on Your Own
DIY estate plans are becoming popular, but they often contain errors or omissions that lead to complications. Hiring an estate attorney can help ensure your plan is:
✔️ Legally sound
✔️ Comprehensive
✔️ Aligned with your wishes
While hiring a lawyer has costs, many offer free consultations or flat-fee services to help draft essential documents.
3. Leaving Loved Ones Uninformed
Many people avoid discussing estate planning due to discomfort, but open conversations with family can prevent conflicts and confusion later. Make sure your heirs:
✔️ Understand your intentions
✔️ Know where key documents are stored
✔️ Have a roadmap for what to expect
4. Keeping Estate Planning Documents Locked Away
Estate plans must be accessible when needed. If stored in a safe or bank deposit box, it may be difficult for your heirs to retrieve them. Instead:
✔️ Share copies with your executor, trustee, or attorney
✔️ Ensure family members have contact info for key individuals
5. Missing Key Documents
An incomplete estate plan can cause disputes and unintended consequences. Be sure your plan includes:
✔️ Last Will & Testament – Outlines asset distribution and executor roles.
✔️ Beneficiary Designations – Covers 401(k)s, IRAs, pensions, and life insurance policies.
✔️ Durable Power of Attorney (Financial & Medical) – Names someone to make healthcare and financial decisions on your behalf.
✔️ Funeral Instructions – Specifies burial, cremation, or memorial preferences.
✔️ Legal Identity Documents – Includes Social Security card, birth/marriage certificates, and prenuptial agreements.
✔️ Property Deeds & Loan Documents – Lists major assets like homes, vehicles, or valuable collectibles.
✔️ Revocable Trust (if applicable) – Helps avoid probate and ease asset transfers.
6. Overlooking Digital Assets
Modern estate planning should include online accounts, digital assets, and cryptocurrency. Consider appointing a digital fiduciary to manage:
✔️ Social media profiles
✔️ Cloud storage and email accounts
✔️ Cryptocurrency wallets and digital investments
7. Forgetting About Final Arrangements
Funeral planning isn’t pleasant, but specifying your preferences in advance helps your family avoid last-minute stress. Plan ahead for:
✔️ Burial vs. cremation preferences
✔️ Funeral service details
✔️ Setting aside funds for funeral costs (which now average over $8,000 in 2024)
8. Ignoring Taxes
Estate taxes can significantly impact wealth transfer. While the federal estate tax exemption is $13.99 million in 2025, this amount may decrease if laws change. Additionally, state estate or inheritance taxes could apply.
9. Not Updating Your Plan
An estate plan isn’t a “set it and forget it” document. Review and update it every 3-5 years or after major life events:
✔️ Marriage or divorce
✔️ Birth of children or grandchildren
✔️ Acquiring or selling significant assets
10. Choosing the Wrong Executor or Trustee
Selecting the right person to oversee your estate is just as important as creating the plan itself. Choose someone who is:
✔️ Trustworthy and unbiased
✔️ Organized and responsible
✔️ Aware of their responsibilities (discuss this with them beforehand)
Taking Action for a Secure Legacy
Avoiding these common estate planning mistakes can spare your family unnecessary stress and ensure your wishes are honored.
An estate plan isn’t just for the wealthy—it’s for anyone who values peace of mind and wants to protect their loved ones. Start planning now, and revisit your plan as life evolves to safeguard the legacy you’ve worked hard to build.
