Top 3 Estate Planning Mistakes and How to Avoid Them
Top 3 Estate Planning Mistakes and How to Avoid Them
When it comes to securing your family’s future, few things are as important as avoiding estate planning mistakes. Unfortunately, these errors are more common than you might think, and they can have lasting consequences for your loved ones.
Whether you’re creating your first plan or reviewing an old one, understanding the common estate planning errors we see every day can help you make better decisions and protect your assets.
Mistake #1 – Not Having a Plan or Using an Outdated One
One of the biggest estate planning mistakes is not having any plan at all. And just as risky is using documents that are 10, 15, or even 20 years old – especially if they were written before major life changes like:
Having children
Buying property
Starting retirement accounts
Purchasing life insurance
Life changes, and your plan should change with it. If your documents don’t reflect your current circumstances, your wishes may not be carried out the way you intend.
Avoid it by: Reviewing your estate plan every 3–5 years or after any major life event. Update beneficiaries, property details, and instructions regularly.
Mistake #2 – Failing to Name Guardians for Minor Children
If you have kids under 18, not naming a legal guardian in your will is a serious oversight. Even if you’re married, separated, or divorced, you must clearly state who will care for your children if something happens to you.
If no guardian is named, a court will decide – and their choice may not align with your wishes.
Even if the other biological parent seems like the obvious choice, list them in your will. This is because:
Insurance companies may require proof of biological or legal parenthood
Custody disputes or divorce can complicate matters
Avoid it by: Choosing and legally documenting a trusted guardian in your will. Discuss your decision with that person so they’re prepared if needed.
Mistake #3 – Adding Adult Children to Your House Deed
Many parents think adding their adult children to the deed of their home is a smart way to avoid probate. In reality, this is one of the most misunderstood common estate planning errors – and it can cause major problems.
Here’s why:
Tax consequences: Your child could face significant capital gains taxes if they sell the property.
Risk in divorce: If your adult child goes through a divorce, their ex-spouse could try to claim ownership of part of your home.
Avoid it by: Speaking with an estate planning attorney about safer ways to transfer property, such as a living trust, that protect both you and your heirs.
Protect Your Family by Avoiding These Estate Planning Mistakes
Estate planning isn’t just about paperwork – it’s about protecting the people and things that matter most. Avoiding these three estate planning mistakes will help ensure that your wishes are honored, your family is provided for, and your assets are safeguarded.
Review your plan today. Small changes now can prevent big problems later.
Your Next Steps
At MLO Law, we help families create, review, and update their estate plans with clarity and care. If you’re ready to protect your legacy, our team is here to guide you every step of the way.
Want to learn more? Explore more expert tips and success stories right here on our blog or give us a call at (314) 932 7111.