There are many myths and misconceptions about estate planning, and even seemingly small oversights can create complications for you and your family. Being aware of these nine common estate planning mistakes can help protect your assets, carry out your wishes, and potentially reduce unnecessary taxes, probate costs, and delays.
1. Beneficiary omissions
Failing to name contingent beneficiaries—or neglecting to review your beneficiary designations regularly—can create unintended consequences. If a beneficiary is no longer able to receive an asset and no backup beneficiary is named, the asset may become subject to probate, creditor claims, or unnecessary delays. Review your beneficiary designations periodically, especially after major life events such as a marriage, divorce, birth, or death.
2. Forgetting to update an IRA after divorce
Beneficiary designations on retirement accounts deserve special attention after a divorce or remarriage. Getting married does not necessarily mean your new spouse automatically replaces a former spouse who is still named as the beneficiary of an IRA. Review and update your retirement account beneficiary designations whenever your family circumstances change to make sure they reflect your current wishes.
3. Leaving assets directly to a minor
Leaving an inheritance directly to a minor can create questions about who will manage the assets and how the money may be used. Simply stating that funds should be used “for their benefit” may not provide enough direction. Consider establishing appropriate arrangements that identify who will manage the inheritance and provide clear instructions about how and when the assets should be used or distributed.
4. Ownership mistakes and imbalances
How assets are titled between spouses can affect an estate plan. For example, one spouse may hold significantly more assets than the other, such as a large retirement account and individually owned real estate. Reviewing how assets are owned and, when appropriate, adjusting ownership may help align your assets with your overall estate and tax-planning goals. Because the tax consequences can vary significantly, consult with your tax and legal advisers before transferring ownership.
5. Not having a residuary clause
A residuary clause addresses assets that aren’t specifically named elsewhere in your will. This can include property you acquire after creating the will or assets you may have unintentionally omitted. Without a residuary clause, those assets may not be distributed according to your intended plan. Including one can help ensure that property not specifically addressed still passes according to your wishes.
6. Not planning for the unexpected
Life can change quickly. Your spouse’s health could decline, your financial circumstances could change, or your family could face an unexpected event. An estate plan should account for these possibilities. Depending on your circumstances, a trust or other planning tool may allow you to establish how, when and to whom assets are distributed if circumstances change.
7. Avoiding conversations about mortality
Thinking about death can be uncomfortable, but avoiding estate planning can leave your family with difficult financial and legal decisions during an already challenging time. Creating a plan allows you to make important decisions in advance and communicate your wishes clearly. It can also give your loved ones a roadmap to follow when you are no longer able to make those decisions yourself.
8. Not updating your will
Families, businesses, and finances change over time, and your estate plan should change with them. Marriage, divorce, births, deaths, business changes, and significant purchases or sales can all affect your existing plan. Review your will and other estate planning documents periodically to ensure your assets will go to the people and organizations you intend.
9. Not planning for disability
Estate planning isn’t only about what happens after death. An unexpected illness, injury or long-term disability could leave you unable to manage your financial affairs or make health care decisions. Consider who should manage your finances, care for minor children, and make medical decisions on your behalf if you become unable to do so. Depending on your circumstances, tools such as powers of attorney, advance health care directives, and trusts can help ensure trusted individuals are authorized to act for you.
Final thoughts
A thoughtful estate plan can help protect both you and the people you care about. In addition to helping preserve the value of the assets you eventually pass to your heirs and beneficiaries, planning gives you an opportunity to make informed decisions about how your financial and personal affairs should be handled during your lifetime. Because estate and tax laws can be complex and change over time, work with qualified legal and tax professionals to develop and periodically review a plan that fits your circumstances. Contact our Estate Planning team to learn more.
© 2026
