Top 5 Estate Planning Mistakes

5. Waiting Until it’s Too Late.

Too many families wait until it's too late - without an estate plan, a sudden illness, accident, or death can result in complex and expensive probate court proceedings. Probate can cost thousands in legal fees, and often causes family disputes. By not having a plan you give up both money and control.

✅ Action Step: itemize your assets, write out your general goals and questions, and schedule an initial estate planning consultation or legal strategy session.

4. Relying on an Outdated Estate Plan.

Sometimes not having an estate plan is better than having an outdated plan that no longer reflects your wishes. Your money, real estate, and family heirlooms could end up in the wrong hands if your estate plan fails to account for divorces, new children, or predeceased beneficiaries.

✅ Action Step: have an attorney review existing documents and make sure they reflect your current wishes; update or amend outdated documents.

3. Failing to Update Beneficiary Designations.

Assets such as retirement accounts, life insurance policies, annuities, and investment accounts have beneficiary designation forms that take precedence over a will or a trust when determining how each account is distributed. Outdated or blank beneficiary forms can lead to unintended consequences.

✅ Action Step: review and update your beneficiary designations annually or after major life events.

2. Ignoring Your LLC or S-Corporation.

Many small business owners do not realize that LLCs, S-Corps, and partnerships do not automatically pass to heirs. Without a coordinated estate plan, business assets often trigger legal disputes, loss of control over the business, or even a forced  liquidation.

✅ Action Step: consult with an attorney to establish both an Operating Agreement and a Buy-Sell Agreement for your business.

#1 - Not Funding Your Revocable Trust.

Setting up a trust is only half the battle. The key step of funding the trust occurs only after the trust is created. Failing to complete the funding process can totally defeat the purpose of the trust. Assets may be distributed to unintended beneficiaries or may be tied up in probate court disputes for years.

Get a Free Guide on How to Fund Your Revocable Trust

✅ Action Step: CLICK HERE to request a free guide on how to fund a revocable trust.