What are the Biggest Mistakes People Make with Estate Plans?

Ask any estate planning attorney for a horror story and step back as they come flooding out. Moms who leave millions to a veterinarian to care for a beloved cat or uncles who grabbed and kept a half-million-dollar insurance policy intended for a son are just a few examples.

When your estate plan isn’t properly prepared, many things can go wrong, according to a recent article from Kiplinger, “Wills Gone Wild: How to Avoid Estate Planning Disasters.” Assets can end up with the wrong people, or beloved children can be disinherited entirely. A bungled do-it-yourself will can lead to a distant cousin inheriting your entire estate, while a life-long partner ends up homeless and impoverished.

If you intend to protect those you love, you’ll need to sit down with an estate planning attorney and create a last will and testament and other estate planning documents. Without a will, you can be sure family discord will follow your passing.

Aretha Franklin provides one lesson on what happens when there’s no formal will. Not one but two handwritten or holographic wills were found in her home in Detroit after she died. One, dated 2010, was found in a locked cabinet, while the second was found under a couch cushion, dated 2014. There were four sons, and all disagreed about which one was valid. The matter went to court, with a judge ruling the 2014 will was valid. Not all states accept holographic wills and leaving more than one copy around the home doesn’t guarantee anything but a family fight and legal expenses.

Many people are testing online wills. However, the unintended consequences are very costly for loved ones. One father decided he would create a will without an estate planning attorney. When he died, instead of dividing his estate equally between three adult children, all his property and assets went to the children and the grandchildren. Each of his three children had children, so what he intended to be a simple three-way split ended up being divided into many small gifts.

Second and subsequent marriages can complicate estates. Estate planning attorneys all have stories about remarried people who want their estate to go to the new spouse but forget to take care of their children from the first marriage. When the second spouse inherits the entire estate, it’s easy enough to rewrite the will, and the deceased spouse’s kids are disinherited. A surviving spouse is under no legal obligation to maintain an old will or to give assets to stepchildren. Estate planning attorneys know how to use trusts and other strategies to protect the surviving spouse and the biological children.

Pets are often part of estate planning disasters. One attorney tells the tale of a client estranged from her only child, a daughter. She wanted to leave everything in her estate to her cats. However, something went very wrong, and her veterinarian inherited $3.5 million. In this case, the vet was an upstanding citizen and worked with an estate planning attorney to ensure any monies left after the death of the cats went to animal charities. However, there was no legal requirement for the vet to do so.

Elderly people are often preyed upon by their trusted caretakers. One horror story concerned two elderly men who lived together and shared a home care nurse. When one of the men was hospitalized, the caretaker and her husband came to the home and exploited the second man. The caregiver convinced the elderly man to make her a beneficiary of a $500,000 CD and joint owner of a lakefront vacation home.

When it comes to estate planning, the only way to avoid a nightmare legacy is to meet with an experienced estate planning attorney and have an estate plan created. Estate planning attorneys have seen more wild tales than you can imagine and can ensure that you don’t become one of them.

Reference: Kiplinger (Jan. 29, 2025) “Wills Gone Wild: How to Avoid Estate Planning Disasters”

Where Should I Keep My Will?

A will is only useful if it can be found after death. If misplaced, locked away without access, or accidentally destroyed, the probate court may proceed as if no will exists, distributing assets according to state law rather than the decedent’s wishes. Proper storage balances security and accessibility, ensuring that the document is protected but readily available when needed.

Best Places to Store a Will

With an Estate Planning Attorney

Many people choose to leave their will with the attorney who drafted it. Law firms typically store wills in fireproof safes, ensuring that the document is secure and intact. If the will’s validity is questioned, an attorney can verify its authenticity. However, this option is only effective if family members or the executor know which attorney holds the will.

In a Fireproof and Waterproof Safe at Home

A home safe provides security while allowing immediate family access when needed. It should be fireproof and waterproof and placed in a location known to the executor. If the safe requires a key or code, at least one trusted person should have access. Without access instructions, a locked safe can delay probate and require court intervention.

With the Probate Court (Where allowed)

Some states allow individuals to file their will with the local probate court for safekeeping. This ensures that the document is secure and legally recognized. However, this method requires updating the court file when revisions are made. If this step is overlooked, an outdated will may be used in probate.

Registered with The U.S. Will Registry

Registering your will with The U.S. Will Registry helps ensure your loved ones can locate it when needed. Even if you store a physical copy safely, family members may forget its location, misplace it, or accidentally discard it. By registering, you clearly record where your will is stored, preventing unnecessary stress and delays in settling your estate. The U.S. Will Registry also offers free online storage, giving you extra security and peace of mind.

Where Not to Store a Will

In a Bank Safe Deposit Box

While safe deposit boxes provide strong security, they can cause delays. Banks typically seal a box upon the owner’s death, preventing the executor from accessing the will without a court order. If choosing this option, the executor should be listed as a co-owner with access rights.

In an Unsecured Location

A will should not be stored in a desk drawer, filing cabinet, or with other household papers. These locations increase the risk of loss, accidental destruction, or intentional tampering. A digital copy is insufficient, as most states require the original, signed document for probate.

Ensuring the Will Can Be Found

Regardless of where the will is stored, the executor and at least one trusted person should know its location. Keeping instructions in a separate estate planning file and other critical documents ensures the will can be located and used immediately.

Key Takeaways

Proper storage prevents legal complications: The probate court may distribute assets according to state law if a will is lost or inaccessible.
An attorney’s office offers security and authentication: Keeping a will with an estate planning attorney protects it from loss and helps verify its validity.
A fireproof home safe balances security and access: A well-placed, fireproof safe ensures that the will is protected while remaining available to the executor.
Safe deposit boxes can cause probate delays: If an executor cannot access a safe deposit box, a court order may be required to retrieve the will.
Family members must know where the will is stored: Informing the executor and key family members of its location prevents confusion and unnecessary legal delays.

Reference: The U.S. Will Registry (Oct. 24, 2024) “Where to Store Your Will to Ensure its Security”

Millennials Need Estate Planning

One family jokes about their mother’s large blue binder, affectionately calling it “Mom’s Book of Life.” She has assembled physical copies of estate planning documents, including medical directives for next of kin, account information, passwords and a list of assets. Her adult children thought they were too young to deal with such matters, reports a recent article, “I’m Way Too Young For Estate Planning. Or Am I?” from The Wall Street Journal. On reflection, they realized they, too, needed an estate plan.

Someone as young as 18 could benefit from having an estate plan, and someone in their 30s definitely needs one. Once a young person becomes a legal adult, their parents no longer have any say in financial or health matters without properly prepared estate planning documents.

Everyone over 18 should have an advanced healthcare directive, sometimes called a healthcare proxy or healthcare power of attorney. This allows people of your choosing the ability to make decisions about your healthcare if you become incapacitated: too sick or severely injured and unable to communicate your wishes.

Adults of all ages also need a power of attorney. This document gives another person the legal authority to access and manage your finances in case of incapacity.

A will, also known as a last will and testament, is needed to direct how you want your assets to be distributed after death. Even if you don’t own a home or car, chances are you have some personal property and may want specific people to receive certain items. Creating a will and getting used to the concept of planning for the future is a good habit.

If you have an extensive online life, digital assets will also require some planning. An inventory of your digital assets, including email accounts, apps, social media, cryptocurrency, photos, videos, etc., should be created, so a digital executor can manage the accounts. Some platforms permit naming a legacy contact, while others require specific directions on what should be done with your content.

Student loans, 401(k)s from employers and other financial accounts should be inventoried. However, this information doesn’t go into the will. The will becomes a public document once submitted to the court for probate, so any specific account information should be kept in an inventory of assets and debts.

Creating an estate plan can open a conversation with older relatives and parents about their plans for end-of-life care, a difficult but important dialogue. Talking about their wishes before something happens will allow you or other relatives to know beforehand, rather than spending the rest of your life worrying about a decision made in an emergency situation.

Estate plans need to be changed as you go through your life. New partners or spouses may need to be added, or a deceased parent may need to be removed as an executor. Getting used to addressing these life matters is part of being a responsible and loving adult.

Reference: The Wall Street Journal (Oct. 18, 2024) “I’m Way Too Young For Estate Planning. Or Am I?”

Can an Invalid Will Be Challenged?

If you are looking for a reason to get your estate plan in order, the experience of a daughter faced with a long and expensive legal battle when an invalid will was filed should motivate you to contact an estate planning attorney today. This unsettling story, reported by KATU2, “Woman says invalid will drained her mom’s estate and exposed holes in OR probate process,” shows why wills need to be updated and shared with family members.

A woman’s mother died suddenly in her daughter’s apartment. A few months later, a will was filed and accepted by the probate court but not by the daughter. It took nearly five months for a judge to throw out the invalid will after it went into effect.

The will expressly disinherited the daughter, who was very close with her mother and knew her mother would never have disinherited her. Her attorney filed to contest the will in June 2023.

The witness and the notary on the will were identified and interviewed. Both said they never signed the documents. The witness and notary filed their statements with the court in July. A handwriting expert who testified that the two signatures had been forged was brought in.

The handwriting expert also determined the mother’s signature on the will was forged, finding it had been taken from a legitimate will created in 2018. Kristy was left a quarter of her mother’s estate in this will.

The judge set a court date for September. In the interim, thousands of dollars were charged fraudulently on the mother’s credit cards. Someone advertised and held an estate sale in August when generations of heirlooms were sold at a garage sale.

The court froze the entire estate in late August. The 2022 will was found invalid in early September, and the executor was removed. By this time, however, a lot of irreparable damage had been done.

The court validates a will during probate. However, something went wrong in this case. Having a will prepared with an estate planning attorney and discussing the process with the appropriate family members should take place. However, not every family takes these steps.

The court is not responsible for contacting the beneficiaries to ensure that they receive their inheritance, unless they file a will contest with the court. It is then up to the heirs to prove a will’s validity.

In this case, both the beneficiary of the invalid will and the attorney representing the executor of the invalid will have refused to speak with a KATU2 reporter. So far, no charges have been filed. The only sure thing is that the case is under investigation by the county sheriff.

Keeping a will current and maintaining open lines of communication between the family, the executor and the estate planning attorney helps to avoid this kind of situation.

Reference: KATU2 (Oct. 14, 2024) “Woman says invalid will drained her mom’s estate and exposed holes in OR probate process”

Increase in Estate Planning for Gen-Z

A recent study by Trust & Will highlighted that Gen Z is leading in setting up their estates and wills. Despite their young age, they are more curious and engaged in planning their financial futures than any other generation. Financial planner Jack Heintzelman from Boston Wealth Strategies notes, “They want to set themselves up for success and have flexibility in their lives, not just work until retirement.”

What Drives Their Early Planning?

Living through significant global events like 9/11, the 2008 financial crisis and the COVID-19 pandemic has influenced Gen Z’s mindset. These experiences have made them more pragmatic and forward-thinking. Their tech-savviness and access to vast amounts of information online also enable them to make informed financial decisions. They have witnessed economic instability and recognize the value of planning ahead.

How are Financial Advisors Responding?

Financial advisors are noticing this trend and adapting their strategies. In an article by Investment News, Paul Schatz of Heritage Capital mentions that younger clients are more approachable and agreeable regarding estate planning. Kelly Regan from Girard, a Univest Wealth Division, adds that the upcoming wealth transfer makes Gen Z a crucial demographic for advisors. Advisors are now focusing on educating and engaging Gen Z clients, offering tailored advice that resonates with their unique financial goals and values.

What Estate Planning Documents Do You Need?

Mandy Ritter, a senior wealth planning specialist at Captrust, emphasizes the importance of having key documents in place. These include a last will and testament, a financial durable power of attorney, a health care power of attorney, a living will and HIPAA authorization. These documents ensure that Gen Zers have control over their financial and medical decisions, even if they become incapacitated.

Digital Assets and Estate Planning

In today’s digital age, it’s essential to consider digital assets in estate planning. Advisors should ensure that clients have online accounts and digital presence plans. This includes providing executors with access to passwords and digital asset instructions. Managing digital legacies has become increasingly important as more of our lives and assets exist online.

Can Advisors Connect with Gen Z?

Advisors need to listen to their goals and visions to connect with Gen Z effectively. Jack Heintzelman advises,

“Don’t lead with products or solutions. Listen to what their goals are and how they feel about money. Meet them where they are, and they will take your advice seriously.”

Building trust and rapport with this generation requires understanding their unique perspectives and providing guidance that aligns with their values and long-term aspirations.

Ready to Secure Your Future?

Gen Z is setting an example by taking control of their financial futures early. If you want to ensure that your loved ones are protected, and your assets are managed according to your wishes, it’s time to start planning. Early estate planning can offer peace of mind and a sense of security, knowing you have a clear plan.

Key Takeaways

Early Financial Security: Gen Zers are securing their financial futures at a young age, ensuring stability and control.
Influence of Global Events: Exposure to significant events has made them more pragmatic and forward-thinking about financial planning.
Tech-Savvy Decisions: Their comfort with technology allows them to effectively access and utilize financial planning tools.
Entrepreneurial Spirit: Many Gen Zers are entrepreneurs, and estate planning helps protect their business interests.
Comprehensive Planning: Including digital assets in their estate plans ensures complete and organized future management.

References: Investment News (Jan. 5, 2024) “The younger, the better: Gen Zers are ready for estate planning” and Trust & Will “Millennials and Estate Planning: Trust & Will’s Annual Report [Updated 2024]”

How Your Estate Plan Addresses More than Money

Having a properly drafted and executed last will can help ensure that your wishes for asset distribution are followed, says an article from CNBC, “Writing your will is ‘not just a question about finances,’ expert says. Here’s why it’s a crucial task.”

People often think they don’t have enough assets to warrant creating a will, which is a big blunder. Without the right estate planning documents, loved ones will have to deal with additional difficulties during times of serious illness or death.

When no will exists, laws of “intestacy” take over. These state-specific laws determine who receives your assets, usually based on bloodlines or kinship.

Without a will, any minor children will be raised by whoever the court decides will be best to raise them. It won’t matter if you’ve always thought your cousin would be the best parent, if you died if the judge believes your uncle and aunt are the best choices. Your wishes won’t be heard.

If you don’t have an estate plan or haven’t revised your will in more than five years, it’s time to make an appointment with an estate planning attorney to prepare a will and other documents to protect your loved ones and your assets.

Part of having a complete estate plan includes ensuring that the people you’ve named as beneficiaries on bank and retirement accounts and life insurance policies are still the people you want to receive these assets. These accounts pass outside of your probate estate, so whatever your will says doesn’t matter for these accounts.

If you own a home or multiple properties, talk with your estate planning attorney about how to best structure ownership. It might be possible to place your home in a trust to remove it from your probate estate, or you may do better leaving it as is. The estate planning attorney will review your entire estate to determine your best option from an estate planning and tax perspective.

If there’s no will, a significant asset like a house is usually divided among heirs, depending on the state’s laws. This can get very complicated very fast.

Meet with an estate planning attorney to get the process started. It’s not as burdensome as you might think and will save your loved ones from additional stress and worry during times when their focus should be on celebrating your life and grieving your loss.

Reference: CNBC (May 8, 2024) “Writing your will is ‘not just a question about finances,’ expert says. Here’s why it’s a crucial task”

Stay-at-Home Parents Need an Estate Plan

Any family’s estate plan must address all aspects of life, planning for incapacity and death. It’s easy to overlook the Stay-at-Home Mom (SAHM) or dad. They don’t have paychecks, raises, reviews, or PTO. But, overlooking the importance of what the SAH parent does for the family is a big mistake, and this includes neglecting estate planning, according to a smart article from The News Enterprise: “Stay-at-home parents must be deliberate about estate plans.”

For one thing, life insurance needs to be in place for both spouses. It may be easy to define the amount of insurance for the spouse working outside of the home, but the SAH parent’s tasks also need to be insured.

How long will the children be at home needing care, and what would daycare or a caretaker cost? How much would it cost to hire someone to cook, clean, do laundry, and run the household?

If children are home-schooled, how will the SAH parent be replaced? Will the children start attending public school, or is private school more aligned with the family’s values?

It’s easy to think the working parent will slide into these tasks, but unrealistic, as any single working parent will tell you. The children will be dealing with grief and emotional upheavals—adding a stressed parent to the mix who is also dealing with grief will make for a terrible situation.

In addition to having the right amount of life insurance, estate planning documents should be prepared with an eye on this possibility. The last will and testament is used to name a guardian for minor children, who will be responsible for raising the children if both parents are unable to care for them because of death or incapacity. A revocable trust should be considered, and a trustee should be appointed to ensure the funds are available for the children’s care and education.

The revocable trust can also ensure the children are not disinherited if the surviving spouse remarries.

This plan needs the review and guidance of an experienced estate planning attorney to ensure the will is correctly created to protect the children and set up any needed trusts.

Stay-at-home parents are often the glue keeping the family running. Replacing them isn’t possible—but preparing for life’s ups and downs will help the family adjust to any major changes.

Reference: The News Enterprise (May 25, 2024) “Stay-at-home parents must be deliberate about estate plans”

How Younger Adults Take Charge of Estate Planning

However, recent anecdotal trends show a new, positive shift among millennials or Gen-Z individuals. According to a recent article from Forbes, “Why Gen-Z Is Suddenly Creating Wills And Trusts—And You Should Too,” within recent months, more and more millennials and Gen-Zers who are being told to create an estate plan are actually going ahead and doing so.

The article says Gen-Zers and millennials have become the “quiet leaders” of estate planning. Several things are driving this shift:

Digital Assets. Younger people, even those of modest means, have significant digital assets, including cryptocurrencies, online businesses and many social media accounts.

COVID. Living through a global pandemic and experiencing the unexpected loss of family members raised awareness relatively early in their adult years of the repercussions of not having an estate plan.

Changing Family Structures. “Modern Family” is more than entertainment. Today’s family is more likely to be different than the traditional family structure of the past, and clear directives are needed to prepare for asset distribution.

Valuing Philanthropy. Younger adults are more aware of the role nonprofits play, whether in their immediate communities or globally. They are also more likely to give a portion of their estate to nonprofit organizations.

Financial Savvy. Younger adults are more candid than past generations with their peers about money and how to protect it through estate planning as part of money management and investment strategies.

Having an estate plan can protect a legacy for family and children, while not having one could mean giving half of your estate to the government in taxes. An estate planning attorney can help to avoid or minimize probate, a court process requiring your will to become a public document. Probate can delay the distribution of property and can be costly.

Another reason to have a will is to minimize family conflict. Your family won’t be left guessing how you want your assets to be distributed. It is also less likely that there will be family fights or misunderstandings after you’ve passed.

Estate plans are not just for wealthy people but anyone who cares enough about their family to protect them. Younger adults embracing estate planning is a good sign for the future.

Reference: Forbes (April 17, 2024) “Why Gen-Z Is Suddenly Creating Wills And Trusts—And You Should Too”

Do I Need a Pour-Over Will?

A living trust, also known as a revocable trust, is used in estate planning to transfer ownership of assets in trusts and accomplishes several things. It takes assets out of your probate estate, while permitting you to continue to control the assets. You can be the trustee while living and of sound mind, as explained in the article “What Is A Pour Over Will?” from Forbes. The trust names a backup or successor trustee who manages the trust assets if you become incapacitated or die. The living trust includes the names of your beneficiaries, which may be individuals or charitable organizations.

When you die, assets held in the living trust are transferred using the trust administration process. Assets held (owned) outside the trust must be addressed differently. This usually means going through probate.

If you have no will, your state’s intestacy laws will apply. These laws would distribute your assets to family members based on their relationship to you—kinship. This may not be what you wanted, especially if a family member is estranged from you. However, it won’t matter, and other family members will have to live with the court’s decision.

However, you can use a pour-over will to “pour over” any assets not in the trust at the time of your death into the trust after your passing. This ensures that the assets will be transferred through the trust administration as well.

When the living trust is established, assets must be retitled so the trust becomes the legal owner. But you might not do this with everything you own, or you may acquire assets after the trust is created and die before you can transfer them. You might simply forget some assets.

As you create a trust for the specific reason to facilitate effective management and transfer of property through the trust administration process, it makes sense to have all your property moved into that trust upon your passing.

An experienced estate planning attorney can help create the living trust and coordinate it with your will and instructions for all assets not otherwise accounted for to pass into the trust upon your death. You’ll need to work with an estate planning attorney to be sure the trust, will and other estate planning documents comply with your state’s laws.

An estate planning attorney can help you understand other options for transferring assets and provision for loved ones. The pour-over will is one of many estate planning tools available to protect your loved ones.

Reference: Forbes (Jan. 29, 2024) “What Is A Pour Over Will?”

What Is the Biggest Mistake People Make on Their Wills?

Making mistakes in your estate planning can torpedo every effort made to protect your family after you die, warns a recent article from Kiplinger, “Common Estate Planning Mistakes.” Everyone benefits from a professionally-made comprehensive estate plan, a process for preparing your legal and financial affairs so assets and possessions are passed on after your death to the people or charities you want.

Not having an estate plan can create a world of trouble for those you love. The biggest estate planning mistake of all is not having an estate plan. After that, there are several others.

Procrastination. Suppose you unexpectedly become incapacitated and don’t have an estate plan. In that case, your family will be left guessing what you would want your medical care to be, in addition to needing to go to court to apply for guardianship so they can pay your bills and keep your household running. Everyone should have documents like Health Care Power of Attorney, Power of Attorney, HIPAA Release Form and Living Will in place.

Trying to make an estate plan on your own. Unless you’re an experienced estate planning attorney, there’s a lot you could leave out if you attempt a DIY estate plan. If there are errors, a court could declare your will invalid and it’s as if you never had a will in the first place. The laws of your state will be used to distribute your assets. It may not be what you had in mind.

Keeping estate planning documents in a safe or safe deposit box. Documents need to be where someone can get them in an emergency or after your passing. Safety deposit boxes are often sealed on the death of the owner. Give copies of your estate plan to your appointed executor or trustee, a trusted family member and your estate planning attorney.

Missing key documents. If your estate plan lacks key documents, your heirs might find themselves battling over the estate. Make sure your estate plan includes these documents:

Last will and testament—This document outlines all final wishes and instructions for distributing your assets and how you want your affairs managed after you die. It also is used to name a guardian for minor children and an executor to oversee the instructions in the will.
Beneficiary designations—Any account allowing for beneficiaries, including IRAs, pension plans, investment accounts and insurance policies, will pass directly to named beneficiaries. Be sure that these are up to date.
Durable power of attorney for medical care—Allows another person to make medical decisions for you if you become incapacitated. Depending on your jurisdiction, it may include an advanced healthcare directive, which gives your instructions on whether or not to use life support.
Funeral instructions—Do you want a traditional burial? Cremation? Tell your family your wishes for a funeral or memorial service.
Proof of identity—Your Social Security card, birth certificate, marriage and/or divorce certificate and any prenuptial agreements will be needed for administering the estate.
Deeds or loan documents for large assets—Collect paperwork for homes, boats and other big assets.

Digital assets. These include websites, cloud storage, social media accounts and cryptocurrency, to name a few. By assigning a digital fiduciary and sharing key information, you help heirs avoid identity theft and lost assets.

Failing to update your plan. Your estate plan needs to reflect the changes in your life. If your estate plan is outdated, you may unintentionally disinherit beneficiaries.

Appointing the wrong person as executor or trustee. If your eldest child is a disaster with money management, don’t name them your executor. Consider a trusted person who is unbiased and able to manage money and family dynamics and talk with them about taking on this role before appointing them to this critical role.

Reference: Kiplinger (Dec. 30, 2023) “Common Estate Planning Mistakes”

Estate Planning Blog Articles

Estate & Business Planning Law Firm Serving the Providence & Cranston, RI Areas

Best Places to Store a Will

With an Estate Planning Attorney

In a Fireproof and Waterproof Safe at Home

With the Probate Court (Where allowed)

Registered with The U.S. Will Registry

Where Not to Store a Will

In a Bank Safe Deposit Box

In an Unsecured Location

Ensuring the Will Can Be Found

Key Takeaways

What Drives Their Early Planning?

How are Financial Advisors Responding?

What Estate Planning Documents Do You Need?

Digital Assets and Estate Planning

Can Advisors Connect with Gen Z?

Ready to Secure Your Future?

Key Takeaways

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