Common Estate Planning Mistakes to Avoid

One of the biggest challenges in preparing for end-of-life decisions and the distribution of assets is timing. Many people wait until the last minute, make rushed choices, and rely on incomplete information. That’s when avoidable mistakes happen. Every financial professional will tell you that a sound portfolio includes a plan for how your estate will be handled, but for anyone unfamiliar with the process, estate planning can feel like a different language.

If you can, dedicate some time now to shaping your legacy plan. Below are a few ways to avoid common estate-planning pitfalls.

1. Have a Strategy

Not having a plan creates unnecessary complications for your family and your estate. Even a simple will is far better than leaving everything to probate. Without documented direction, a probate judge will determine how your assets are distributed, and that opens the door to outcomes you may not intend.¹ At a minimum, prepare a basic will and identify a default beneficiary. Many people assume their spouse will automatically inherit everything, but that’s not always how it plays out. (See point two.)

2. Think Beyond a Single Beneficiary

Don’t assume your primary beneficiary will still be available when your estate plan is executed. Life changes, relationships evolve, and circumstances shift. Naming contingent beneficiaries creates stability and makes it far easier for your executor to carry out your wishes.

3. Regularly Update Your Will, Estate Plan, or Trust

If you already have a will, estate plan, or trust, make sure it stays current. Your financial situation changes, and so does the roster of people in your life. Major updates that should trigger a review include new children, inherited assets, the purchase or sale of significant property, or newly opened financial accounts (bank, brokerage, investment, etc.). Without regular updates, your plan may not reflect new realities, which can create confusion or exclude people you intended to include.

4. Consider Your Own Health

Health is often overlooked in estate planning. A surviving spouse may need support, or you may face a health issue that limits your ability to manage decisions. These situations carry financial implications and require clarity around medical directives and power of attorney. Planning ahead ensures someone you trust can make decisions on your behalf if needed.

5. Consider Transferring Assets as a Gift

Gifts are a straightforward way to transfer assets early without triggering taxes. Any individual can gift up to $15,000 annually to another individual without tax consequences.² This can simplify the eventual distribution of your estate and allows you to manage the transfer directly rather than relying solely on your executor.

6. Choose an Executor

Select an executor who can manage the administrative and legal responsibilities involved. While people often default to a sibling or close relative, the role requires organization, resilience, and the ability to navigate hearings and family dynamics. Choose someone who has the capacity, and the willingness, to do the job well.

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