Estate planning is one of the most important steps you can take to protect your assets, provide for your loved ones, and ensure your wishes are honored. Yet, many people either put it off or make critical errors that can cause unnecessary stress, conflict, and financial loss for their families.
Below are some of the most common estate planning mistakes our Butte, MT estate planning lawyer sees.
Not Having An Estate Plan At All
The most significant mistake is failing to create an estate plan in the first place. Without a will, trust, or other directives, state laws determine how your assets will be distributed. This process, called intestate succession, may not align with your wishes and can lead to lengthy probate proceedings.
Avoid it: Meet with our estate planning lawyer to create a legally sound plan that reflects your goals and protects your beneficiaries.
Failing To Update Your Estate Plan
Life changes—marriages, divorces, births, deaths, and financial shifts—can all affect your estate plan. Outdated documents may leave out new heirs, include unintended beneficiaries, or fail to address changes in tax laws.
Avoid it: Review and update your estate plan every 3–5 years, or whenever a major life event occurs.
Overlooking Beneficiary Designations
Many assets, such as life insurance policies, retirement accounts, and payable-on-death bank accounts, transfer directly to named beneficiaries—regardless of what your will says. If these designations are outdated, your assets could end up in the wrong hands.
Avoid it: Check and update beneficiary designations regularly, especially after life changes.
Not Planning For Incapacity
Estate planning isn’t only about what happens after death. If you become incapacitated due to illness or injury, who will manage your finances or make medical decisions for you? Without proper documents, courts may need to appoint someone—possibly not the person you would choose.
Avoid it: Include a durable power of attorney for financial matters, a healthcare power of attorney, and a living will in your plan.
Failing To Minimize Taxes
Poor planning can result in significant estate, gift, or income taxes that reduce what your beneficiaries receive.
Avoid it: Work with our estate planning attorney and financial advisor to use strategies like gifting, trusts, and charitable donations to minimize tax burdens.
Relying Solely On A Will
While a will is important, it doesn’t avoid probate—a public, time-consuming, and sometimes costly process.
Avoid it: Consider using revocable living trusts and other tools to transfer assets outside of probate while maintaining control during your lifetime.
Not Communicating Your Wishes
Even the best estate plan can cause conflict if family members don’t understand your intentions. Surprises often lead to disputes, damaged relationships, or legal battles.
Avoid it: Discuss your plan with your loved ones and key decision-makers so they understand your reasoning and expectations.
Estate planning mistakes can be costly and emotionally draining for the people you care about most. By working with our experienced estate planning lawyer, keeping your documents current, and clearly communicating your wishes, you can ensure your assets are protected and your loved ones are provided for according to your intentions.
It’s never too early—or too late—to create or update your estate plan. Taking action now can save your family from unnecessary stress and legal complications in the future. At Silverman Law Office, PLLC, we are here to help.