Mistake #1: Not Having Any Estate Plan
The biggest mistake is the most common: doing nothing. According to a 2024 Caring.com survey, only 32% of American adults have any estate planning documents.
Without a plan, the state decides who gets your assets, who raises your children, and who manages your affairs. These decisions are made by a judge who has never met you or your family.
The fix: Start with at minimum a will. Ideally, create a living trust package for complete protection.
Mistake #2: Creating a Trust But Not Funding It
As we discuss in our trust funding guide, an unfunded trust is essentially useless. The trust only controls assets that have been transferred into it.
The fix: Follow through with the funding process immediately after creating your trust. Our packages include detailed funding instructions.
Mistake #3: Not Updating Your Estate Plan
Life changes, and your estate plan should change with it. Major events that should trigger a review:
- Marriage or divorce
- Birth or adoption of children
- Death of a beneficiary or trustee
- Significant change in assets
- Moving to a new state
- Changes in tax laws
- Change in your wishes
The fix: Review your estate plan every 3-5 years, or whenever a major life event occurs.
Mistake #4: Not Having a Power of Attorney
Many people focus on what happens after death but forget about incapacity planning. If you become unable to manage your affairs without a power of attorney, your family faces an expensive, time-consuming court process.
The fix: Include a durable power of attorney in your estate plan. It's included in all our trust packages.
Mistake #5: Ignoring Healthcare Directives
Similar to the POA mistake, many families lack healthcare directives until a medical emergency forces the issue. By then, it's often too late.
The fix: Every adult over 18 should have a healthcare directive. It's included in our Individual and Couples Trust packages.
Mistake #6: Using DIY Templates Without Understanding Them
While DIY estate planning can be effective, blindly filling in templates without understanding the legal implications can create documents that don't hold up.
The fix: Even with our DIY packages, we provide comprehensive guides explaining each document. For those who want extra assurance, our Full Service packages include a professional review.
Mistake #7: Not Coordinating Beneficiary Designations
Retirement accounts, life insurance policies, and bank accounts with TOD/POD designations pass outside your will or trust. If these designations conflict with your estate plan, the beneficiary designation wins.
The fix: Review all beneficiary designations as part of your estate planning process. Make sure they align with your overall plan.
The Opportunity for Professionals
As a financial advisor, real estate agent, or insurance professional, you interact with clients during major financial decisions — exactly when estate planning conversations are most relevant.
By referring clients to estate planning services, you:
- Provide genuine value beyond your primary service
- Strengthen client relationships
- Earn commissions on every referral
- Position yourself as a comprehensive financial resource
Help your clients avoid these mistakes. Share your referral link today.