9. Common Estate Planning Mistakes & Errors

In previous Bar Essentials blog posts and podcast episodes, we have discussed essential estate planning tools such as wills, trusts, and powers of attorney. If you missed those episodes, you can catch up here.

Now that we have established those foundations, let us take a closer look at five common mistakes individuals make when planning their estates, and how to avoid them.

Five Common Estate Planning Mistakes

Failing to Plan

The biggest mistake anyone can make is simply failing to create a plan. Many people assume they have plenty of time, but life-changing events—such as marriage, divorce, or the birth of a child—can quickly make an outdated or nonexistent plan disastrous. Dying without a will means state law determines how your assets are distributed, which may not align with your wishes.

Do: Take time to either start or review your estate plan, especially if it has been more than five years since you last updated it or if you have experienced a major life event.

Not Discussing Your Plan

A lack of communication can lead to confusion and conflict. Your loved ones and fiduciaries need to know where your documents are stored and who to contact. Keeping your plans secret, or placing documents in an inaccessible safe deposit box, can delay the administration of your estate and add unnecessary stress for your family.

Do: Set aside time to discuss your estate plan with your spouse, executor, or trustee. Consider notifying specific people named in your will or trust, and ensure that key individuals know how to locate your documents when the time comes.

Naming Only One Beneficiary

Naming a single beneficiary might seem simple, but it creates risk. If that person predeceases you or cannot accept the inheritance, your assets may end up in probate. Having contingent beneficiaries ensures your estate passes smoothly to your intended recipients.

Do: Always designate a primary and one or more contingent beneficiaries for each asset, account, or policy. This provides flexibility and ensures that your wishes are honored, even if circumstances change.

Forgetting Powers of Attorney

Estate planning is not just about what happens after death. It is also about protecting yourself during life. If you become incapacitated and do not have a financial or medical power of attorney, the court may need to appoint someone to make decisions for you. This process can be time-consuming, costly, and emotionally draining for your loved ones.

Do: Establish both a financial and medical power of attorney. These documents allow trusted individuals to manage your finances and make healthcare decisions if you are unable to do so.

Forgetting Final Arrangements

Your loved ones will be grieving when you pass, and uncertainty about your final wishes can add unnecessary stress. Taking the time to plan your funeral, burial, or memorial preferences is an act of kindness to those you leave behind.

Do: Document your final wishes in writing. Whether you prefer cremation, burial, or a celebration of life, make those desires clear in your estate plan. This ensures your wishes are respected and removes the burden of guesswork from your family.

Final Thoughts

At Pickler Law, estate planning is a vital part of how we help clients protect what matters most. Our team is here to guide you in building a plan that avoids common mistakes and supports your long-term goals.

These five examples represent only a portion of the most common estate planning mistakes and omissions we encounter. To learn about the rest, tune in to Bar Essentials for our episode, “Common Estate Planning Mistakes (and How to Fix Them).” You can listen on all major podcast platforms or visit picklerlaw.com for more information.