Common Estate Planning Mistakes to Avoid

6 Estate Planning Mistakes to Avoid (And How to Protect Your Legacy)

Here's something I've seen too often in my years as a financial advisor: Families dealing with the aftermath of a loved one's passing, only to discover there's no clear plan in place. The stress, the confusion, the family conflicts—it's all preventable.

Estate planning isn't just about "getting your affairs in order." It's about protecting the people you love and ensuring your life's work goes exactly where you intend. Yet so many people put it off, make rushed decisions, or create plans that don't actually work when they're needed most.

At WealthPlan Partner, estate planning is a cornerstone of our Smart Money method because your legacy plan isn't separate from your financial plan—it's the final chapter of it. Let's walk through the most common estate planning mistakes I see and, more importantly, how you can avoid them.

Mistake #1: Having No Plan at All

This is the biggest mistake, and unfortunately, the most common one.

Without any estate plan—not even a basic will—your entire estate goes to probate court. A judge who doesn't know you, your family, or your wishes will decide how your assets are distributed. Your life savings could end up in a place you never intended, and your family will be left to navigate a complicated legal process during an already difficult time.

What to do instead: Even a simple will is infinitely better than nothing. It designates who receives your assets and can save your family months of legal headaches and thousands in legal fees.

Mistake #2: Naming Only One Beneficiary

Life changes. The person you name as your primary beneficiary today may not be available when your estate plan takes effect. They could predecease you, become incapacitated, or circumstances could change that make them unsuitable.

If your primary beneficiary can't fulfill their role and you haven't named contingent beneficiaries, your assets may end up in probate anyway—defeating the entire purpose of your planning.

What to do instead: Always name secondary and tertiary beneficiaries for all accounts and assets. Think through various scenarios: What if your spouse passes before you? What if your adult children face their own challenges? Having backup plans ensures your wishes are honored no matter what.

Mistake #3: Creating Your Plan and Forgetting About It

Your estate plan isn't a "set it and forget it" document. Your life evolves—new children or grandchildren join the family, you acquire or sell major assets, relationships change, tax laws shift. An outdated estate plan can create more problems than having no plan at all.

Major life events that should trigger an estate plan review:

• Birth or adoption of children or grandchildren
• Marriage, divorce, or remarriage
• Significant changes in assets (buying/selling real estate, receiving an inheritance)
• Opening new financial accounts or investment portfolios
• Changes in your health or your spouse's health
• Moving to a different state
• Changes in tax laws

What to do instead: Review your estate plan every 2-3 years at a minimum, and always after major life events. At WealthPlan Partner, we incorporate estate plan reviews into our ongoing financial planning process to ensure everything remains up to date.

Mistake #4: Ignoring Healthcare and Disability Planning

Most people think estate planning is only about what happens after you pass away. But what if you become incapacitated and can't make decisions for yourself?

Without proper healthcare directives and power of attorney documents, your family may be unable to access your accounts, make medical decisions on your behalf, or manage your financial affairs. This can lead to costly guardianship proceedings and family disputes at the worst possible time.

What to do instead: Your complete estate plan should include:

• Healthcare Power of Attorney: Designates who makes medical decisions if you can't
• Living Will/Advance Directive: Documents your wishes for end-of-life care
• Financial Power of Attorney: Authorizes someone to manage your finances if you're incapacitated
• HIPAA Authorization: Allows your designated person to access your medical information

These documents ensure your wishes are honored and your loved ones have the legal authority to help you when you need it most.

Mistake #5: Not Taking Advantage of Gifting Strategies

Many people don't realize they can transfer wealth during their lifetime in a tax-efficient way. The IRS allows individuals to gift up to $19,000 per year (as of 2025) to any number of people without incurring gift tax.

This strategy allows you to:

• See your loved ones enjoy your generosity while you're still here
• Reduce the size of your taxable estate
• Maintain complete control over the assets (versus relying on an executor)
• Potentially help with a child's down payment, education costs, or other significant life expenses

What to do instead: Consider strategic gifting as part of your overall wealth transfer plan. It's a simple way to support the people you care about while optimizing your estate tax situation.

Mistake #6: Choosing the Wrong Executor

Your executor has a big job: managing paperwork, navigating legal processes, coordinating with attorneys and financial institutions, and sometimes mediating family conflicts. Yet many people choose an executor based solely on family dynamics rather than capability.

Just because someone is your oldest child or closest sibling doesn't mean they're equipped to handle the complexities of estate administration. The person needs maturity, attention to detail, and the backbone to make difficult decisions—even when family members disagree.

What to do instead: Choose an executor who:

• Is organized and detail-oriented
• Has the time and willingness to take on the responsibility
• Can handle potential family conflicts with grace
• Lives nearby (or at least in the same state)
• Understands basic financial matters
• Is younger than you and likely to outlive you

Consider naming a corporate trustee or professional fiduciary if your estate is complex or you're concerned about family dynamics.

Your Legacy Deserves a Plan

Estate planning isn't just about paperwork and legal documents. It's about ensuring that the life you've built and the wealth you've accumulated serve your family and your values long after you're gone.

At WealthPlan Partner, we believe your financial plan isn't complete without a thoughtful estate strategy. We take a panoramic view of your finances—including how your wealth will ultimately transfer to the next generation—and help you navigate the complexities with clarity and confidence.

Because your WealthPlan isn't just about today. It's about building a future your family can feel secure in, no matter what life brings.

Ready to Protect Your Legacy?

If you don't have an estate plan, if your current plan is outdated, or if you're simply not sure whether you've covered all the bases, let's talk.

Schedule a complimentary consultation with Angela M. Martin, CRPC®, BFA™ to discuss:

• Your current estate planning situation
• Gaps in your existing plan
• How estate planning fits into your overall financial strategy
• Next steps to protect your family and your legacy

Schedule Your Consultation Today →

This content is provided for informational purposes only and should not be considered legal or tax advice. Please consult with qualified legal and tax professionals regarding your specific estate planning needs. Angela M. Martin, CRPC®, BFA™ is not an attorney and does not provide legal services.

Keywords targeted: estate planning mistakes, legacy planning, will and trust, beneficiary planning, power of attorney, healthcare directives, estate plan review, gift tax strategy, executor selection, probate avoidance, wealth transfer planning

n has the fortitude to do the job. Choose someone with the maturity and backbone who is willing to deal with the challenges involved, including appearing at hearings and fending off relatives.

1. https://www.irs.gov/businesses/small-businesses-self-employed/deceased-taxpayers-probate-filing-estate-and-individual-returns-paying-taxes-due
2. https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.