10 Common Estate Planning Mistakes—and How to Avoid Them

You might think that estate planning boils down to “who gets what” but it’s more complicated than that as estate planning isn’t just about divvying up assets. It’s about protecting your family, honoring your wishes, and ensuring your legacy is preserved.

Yet even the most well-intentioned plans can fall short due to common, avoidable mistakes. From outdated documents to overlooked digital assets, small oversights today can lead to big problems tomorrow.

“Estate planning mistakes can upend your best efforts to protect your family’s finances after your death,” explains Kiplinger’s. “Having a comprehensive estate plan in 2025 will also spare your heirs the pain and expense of determining how to allocate your money and property while they’re grieving.”

Whether your estate is modest or substantial, common mistakes can significantly impact how your assets are distributed, increase taxes, and lead to stressful conflicts among heirs.

“You don’t need a lot of wealth to justify making an estate plan. A plan gives you the freedom to personally allocate assets and guarantees that your beneficiaries will be compensated,” says the Texas A&M Foundation.

Below, we'll explore some of the most frequent estate planning mistakes Texas residents make and practical strategies to avoid them.

Mistake #1: Failing to Plan at All

One of the most prevalent errors in estate planning is simply not having a plan. Surprisingly, many Texans believe estate planning is only for the wealthy, but nothing could be further from the truth.

Without an estate plan:

• Texas law determines who inherits your assets, which may not align with your wishes.
• The court appoints guardians for minor children without your input.
• Potential family conflicts may arise, causing unnecessary stress and legal battles.

How to Avoid: Start now, no matter your age or wealth. Draft at least a basic will or trust to ensure your wishes are respected.

Mistake #2: Ignoring Powers of Attorney and Healthcare Directives

Estate planning isn't just about your assets. It also encompasses your healthcare decisions and financial management if you're unable to act on your own behalf.

Without clear directives:

• Your family might have to pursue guardianship, a costly and emotional process.
• Your healthcare preferences could be overlooked or misunderstood.

How to Avoid:

• Draft a Statutory Durable Power of Attorney to manage your financial affairs and property.
• Establish a Medical Power of Attorney to appoint someone you trust to make healthcare decisions.
• Create a Directive to Physicians (Living Will) that clearly states your end-of-life care preferences.

Mistake #3: Forgetting to Update Your Estate Plan

Life is constantly changing. Marriages, divorces, births, deaths, and significant financial changes can render an estate plan obsolete.

Outdated estate plans:

• Can unintentionally leave out important beneficiaries.
• Might distribute assets contrary to your current intentions.

How to Avoid: Review your estate plan every 3–5 years or whenever major life events occur and update your documents accordingly.

Mistake #4: Incorrectly Naming Beneficiaries

Many Texans assume their will dictates everything. However, beneficiary designations on accounts like retirement funds, insurance policies, and payable-on-death bank accounts override a will.

Incorrect beneficiary designations:

• Can accidentally disinherit loved ones.
• Cause assets to go through probate unnecessarily.

How to Avoid: Regularly review and update beneficiary designations to reflect your current intentions and life circumstances.

Mistake #5: Overlooking Tax Implications

Estate taxes, gift taxes, and income taxes can significantly diminish the wealth you pass on to your heirs.

Tax implications:

• Large estates may trigger substantial federal estate taxes.
• Improper gifting strategies can result in unnecessary tax burdens.

How to Avoid: Work with an estate planning professional to utilize strategies like gifting, trusts, and exemptions to minimize taxes.

Mistake #6: Failing to Communicate Your Plans

Even the best estate plan can cause confusion and conflict if your family isn't aware of your intentions.

Lack of communication:

• Leads to misunderstanding among family members.
• May result in contested wills or trust litigation.

How to Avoid: Discuss your estate plan openly with family members and key beneficiaries to ensure everyone understands your intentions and expectations.

Mistake #7: Forgetting to Address Final Arrangements

Final arrangements such as funeral planning and burial wishes are often overlooked, causing emotional and financial stress for loved ones during an already challenging time.

Without clear instructions:

• Family members may struggle with decisions during their grief.
• Disagreements and uncertainty can arise, adding unnecessary strain.

How to Avoid: Clearly document your preferences regarding funeral services, burial or cremation, and other final arrangements. Communicate these plans to your family to avoid confusion.

Mistake #8: Leaving Digital Assets Out of Your Plan

Digital assets such as social media accounts, online banking, digital photos, cryptocurrency, and other online presences are frequently forgotten.

Ignoring digital assets:

• Can lead to valuable digital property being inaccessible.
• May cause sensitive information to fall into the wrong hands.

How to Avoid: Create a detailed inventory of digital assets, along with usernames, passwords, and access instructions. Include this information in your estate plan with specific instructions on how you want these assets managed or distributed.

Mistake #9: Forgetting to Include Charities or Causes

Many individuals want their estate to reflect their values yet often overlook charities or causes important to them.

Without explicit instructions:

• Your favorite charities may be excluded entirely.
• Your legacy might not align with your lifelong values and philanthropic goals.

How to Avoid: Clearly specify charitable donations in your estate plan. Consult an estate planning professional to maximize the impact of your generosity through effective tax strategies.

Mistake #10: Not Thinking About Children's and Other Heirs' Futures

Estate planning should also consider the long-term well-being and future needs of your children or other heirs.

Neglecting future planning:

• Can result in inheritances being spent irresponsibly.
• May overlook special needs or ongoing support for dependents.

How to Avoid: Set up trusts or other structured distributions that ensure assets are used wisely. Consider specific provisions for heirs with unique or special needs, ensuring their continued financial security.

Did You Know: You can structure your estate planning documents to include funds for your children when they reach certain life events such as college graduation, the buying of a first home, or reaching a certain age.

Take Action Today with Sloan Docs

Estate planning doesn’t have to be overwhelming. By recognizing these common mistakes and proactively addressing them, you can secure your family’s financial future and achieve peace of mind.

Sloan Docs is here to help. Contact our experienced estate planning attorneys today if you have questions about our legal document templates. Together, we can start protecting your assets and ensuring your wishes are honored.