Estate planning isn’t just for grandparents or the ultra-wealthy. It’s a thoughtful act of love for anyone who cares about what happens if life takes an unexpected turn. The trouble is, too many people skip it or do it halfway. Maybe you’ve thought you’re “too young,” or the documents feel overwhelming. But skipping or mismanaging your estate plan can lead to confusion, heartache, and unintended consequences for the people you care most about. What are common estate planning mistakes I can avoid? And, why do people even need an estate plan? Let’s discuss estate planning and walk through some of the most typical pitfalls and how to sidestep them so your legacy lands precisely where you want it to land.
Not having an estate plan
You’d be surprised how many of us leave our future to chance. Studies show that Americans delay estate planning until a health crisis forces their hand, and less than one-third even have essential documents like a will, power of attorney, or healthcare directive ready to go. If you don’t make a plan, state laws like intestacy rules (i.e., dying without a will) will step in and may distribute your assets in ways you never intended. Talking through your wishes now is one of the kindest things you can do for the ones you love. Losing you would be traumatic enough for the people who love you. Save your loved ones from a lengthy, confusing, and frustrating probate process they might otherwise experience during an already difficult time.
Failing to update or review your plan
Your life is constantly evolving. Births, marriages, divorces, new homes, and career changes are just a few of the developments that can make significant changes in how you want your estate plan to play out. The documents within your estate plan should evolve and change right along with your life circumstances. Outdated documents can send the wrong message, disinherit beneficiaries, or complicate medical decisions. One recent guide urges updating every three to five years or after major life events to keep everything aligned and efficient. It would be wise to set a date on your calendar to review your estate plan annually to be on the safe side. If no significant changes have occurred, then you’re at least regularly checking to make sure your documents are in order. This consistent and organized regulation is a gift to your loved ones.
Overlooking beneficiary designations
A will may say one thing, but beneficiary designations in other documents often override those wishes. Life insurance, retirement accounts, and payable-on-death accounts go directly to the person you named in that document, regardless of what your will states. Neglecting to update these instruments, especially after major life shifts, can lead to seriously unintended outcomes. Go ahead and add these other essential documents to your calendar for a yearly review, along with your will and estate planning tools. When it comes to taking care of your family and your estate, a few designated minutes or hours once a year to review them is a small price to pay.
Failing to communicate the plan
Here’s where conversations matter. If your loved ones don’t know your intentions, surprises and confusion can rear up during emotional moments. One study shows that nearly 70% of estate disputes come from poor communication or hidden hopes. Sharing your plan, at least the basics, with your estate’s executor or closest family can massively reduce posthumous confusion. Being transparent and upfront with people in your life regarding your estate plans shows that you respect them and that you’re not going to duck out, leaving them to fight over unrealized expectations and shocking surprises in your will.
Incomplete or incorrect coordination
It’s surprisingly common to end up with documents that clash. Say your will divides assets among four kids equally, but your retirement account lists only one child as beneficiary. That inconsistency leads to questions, disputes, and delays. It is critical that you harmonize wills, trusts, insurance, and beneficiary forms to avoid unrealized plans. Contradictions in these documents often lead to litigation and fighting between family members and people you had intended to take care of with your estate plan. It’s hard to imagine a scenario further away from your desires and intentions. All of these estate planning and financial instruments can run together and feel confusing. Talk to an experienced estate planning attorney in your area to help you manage and organize your estate. This is time and money well spent.
Forgetting powers of attorney and healthcare directives
No one likes to imagine being unable to speak for themselves, but what if something happens where you’re unable to? What happens when Jane Doe gets into an accident and needs decisions about medical care or someone to manage her finances, but no one is legally empowered to do so? A healthcare directive (aka “living will” or “advanced directive”) enables your family, friends, and doctor(s) to know your preferences regarding healthcare, including whether you want certain types of care at the end of your life and organ donation. A power of attorney allows you to select a person who will act on your behalf when it comes to medical, legal, or financial issues. It’s not fun to consider a scenario where you need someone to speak or act for you, but it is a smart move to make. It will provide you with peace of mind throughout the rest of your life that your estate and your body will be protected and treated according to your specific wishes.
Naming the wrong executor or trustee
Choosing an executor or trustee matters a lot. These people handle finances, legal paperwork, and your final wishes. Yet, selecting based on closeness alone rather than trustworthiness or financial capability can slow down administration or create conflict. A trustee and an executor of your will should be someone who is trustworthy, responsible, has the time to be able to respectfully manage your estate, and has some financial acumen. Choosing someone who is impartial and who doesn’t stand to gain from your estate is another important thought to consider. If you cannot think of anyone in your life who fits this description, there are professional fiduciaries who can step in and manage your estate as the executor or the trustee. There is, of course, a cost associated with these professional fiduciary services, but along with the expense comes the peace that they are experts in handling other people’s estates.
Ignoring estate tax exemptions and planning strategies
Not planning for tax efficiencies can be a very expensive mistake. The federal estate tax exemption is now well above $12 million per person, but it’s changing. Failing to use your full exemption or establish tools like trusts can leave your heirs taxed more than they otherwise would have been if you had planned ahead with tax penalties in mind. With legislative environments shifting, smart planning now can save future headaches and dollars. If you have questions about the potential tax liabilities associated with your estate, speak to a financial advisor with in-depth knowledge of estate planning and taxation.
Not protecting digital assets
In our digital world, many of us have assets like social media, cryptocurrency, or online accounts. These fun hobbies are actually assets in some situations and are often forgotten until it’s too late. Not including digital asset instructions or access permissions in your estate plan can create emotional and technical challenges for your loved ones and for your bank account if these accounts bring in money. At the very least, talk with a trusted family member and have a plan for if the unexpected happens and you’re unable to manage your digital assets.
Avoiding estate planning in blended families
For families formed in second marriages or with stepchildren, estate planning carries a unique emotional charge. The Wall Street Journal highlights the potential for disputes when standard estate plans, which leave everything to the surviving spouse, bump stepkids or biological children out of the equation. It’s easy to imagine how many fights, hurt feelings, and litigation can ensue related to this scenario. You likely know of dramatic situations in real life that spun out of control because someone didn’t clearly and intentionally plan for the administration of their estate pre-death. Tailoring your plan with specific instructions, trust structures, and clear communication can reinforce unity rather than unintentionally divide.
The final word on common estate planning mistakes and how to avoid them
Estate planning is an essential item you should put on your to-do list. You’re managing taxes and paperwork, sure, but you’re also sparing your family turmoil, honoring your values, and laying down a legacy you feel good about. If you’ve missed even one of the above, you’re not alone. The key is to start now, revisit your estate planning instruments often, communicate openly with your loved ones, and get support when it matters, especially for blended families or complicated assets. You’re already doing the right thing by researching articles on estate planning. Well done and keep going!
My name is Carla Garino. I am a founding partner of Webster & Garino LLC, with offices located in Westfield, Indiana, and Bloomington, Indiana. I am a graduate of the Maurer School of Law at Indiana University Bloomington. I have practiced for more than twenty years and now focus on assisting clients with premarital agreements and estate plans, as well as small business development. Part of my personal and work ethic is to focus on listening, education, and understanding.
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