Estate planning remains one of the most important yet frequently mishandled aspects of financial and legal preparation. As we are starting a new year, evolving laws, changing family dynamics, and new financial strategies call for a renewed focus on avoiding common estate planning mistakes. Inspired by the insights shared in a recent National Law Review podcast on estate planning mistakes, this article provides an in-depth refresher on key pitfalls to avoid, ensuring your estate plan is up-to-date and legally sound.
1. Failing to Update Estate Plans Regularly
One of the most common estate planning errors is neglecting to update documents as life circumstances change. Major life events—such as marriage, divorce, the birth of children, or the death of a loved one—should prompt an immediate review of your estate plan. Additionally, changes in tax laws and financial regulations may necessitate revisions to trusts, wills, and beneficiary designations.
Pro Tip: Schedule regular reviews of your estate plan with your attorney to ensure it reflects your current situation and goals.
2. Overlooking Beneficiary Designations
While many people focus on drafting a will, they often forget that certain assets, such as life insurance policies, retirement accounts, and payable-on-death accounts, pass directly to named beneficiaries. Failing to update these designations can result in unintended outcomes. For example, if an ex-spouse is still listed as a beneficiary on a retirement account, they may inherit the account despite the presence of a new will.
Pro Tip: Ensure that all beneficiary designations are consistent with your estate plan and reflect your current intentions. If you have a Revocable Living Trust, make sure that it is properly funded.
3. Ignoring Digital Assets
In today’s digital world, failing to account for digital assets can create significant problems for heirs. Digital assets include everything from online bank accounts and cryptocurrency wallets to social media profiles and email accounts. Without proper documentation and access instructions, it can be challenging for your family to manage or close these accounts after your passing.
Pro Tip: Keep a secure, up-to-date inventory of digital assets and provide access instructions to a trusted person or executor.
4. Relying Too Heavily on DIY Documents
The rise of online legal services has made it easier than ever to create estate planning documents. While these services may seem cost-effective, they often lack the customization necessary to meet individual needs and comply with state-specific laws. A poorly drafted or incomplete document can lead to costly legal battles for your heirs.
Pro Tip: Work with an experienced estate planning attorney to ensure your documents are legally valid and tailored to your specific needs.
5. Failing to Plan for Incapacity
Estate planning isn’t just about what happens after you die—it’s also about ensuring your wishes are respected if you become incapacitated. Without proper healthcare proxies, durable powers of attorney, and living wills, your loved ones may have to go to court and have a judge determine who will be your guardian and what decisions they can make on your behalf.
Pro Tip: Establish clear directives for medical care and financial management in case of incapacity, and communicate your wishes to your family and appointed agents.
Bonus Tip: A properly drafted Revocable Living Trust may be able to avoid a guardianship hearing.
6. Not Considering State-Specific Estate Taxes
While federal estate taxes apply only to estates above a certain threshold (currently $13.99 million per individual in 2025), several states impose their own estate or inheritance taxes. Even if your estate is exempt from federal taxes, it may still be subject to state-level taxes.
Pro Tip: Consult with an estate planning attorney familiar with your state’s tax laws to minimize tax liability for your heirs.
Estate planning isn’t a one-time event—it’s an ongoing process that should evolve as your life changes. By avoiding these common mistakes and working with experienced professionals, you can ensure that your estate plan meets your long-term goals and protects your loved ones.
In 2025, staying informed and proactive is the best way to safeguard your legacy. Whether you’re creating your first estate plan or revisiting an existing one, taking the time to do it right can prevent costly errors and provide peace of mind for you and your family.
If you’d like to discuss updating your estate plan or creating one from scratch, feel free to schedule a consultation. An experienced attorney can help you navigate complex laws, avoid common pitfalls, and ensure that your wishes are honored. After all, a well-crafted estate plan is one of the greatest gifts you can give to your loved ones.
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