TL;DR
Skipping or mishandling your estate plan can lead to court delays, family disputes, and unintended consequences. The most common mistakes include:
- Not having a plan at all
- Using DIY tools or cheaper alternatives
- Failing to update documents after life changes
- Forgetting to fund your trust
- Not aligning your account titles and beneficiaries with your estate plan
- Taking real property out of trust for a refinance or reverse mortgage, and not placing the property back into the trust
Working with a qualified California attorney helps avoid these issues and ensures your wishes are followed, your family is protected, and your legacy is secure.
Common Estate Planning Mistakes—and How to Avoid Them
1. Not Having a Plan at All
This is by far the most common and most damaging mistake.
Hypothetical Example:
Imagine a single parent with no will passes away unexpectedly. Since they didn’t name a guardian, the court may decide who takes care of their minor child. Family disagreements could arise, and key assets like the family home might end up in probate for an extended period.
Potential Consequences:
- The court uses the probate code to decide who inherits your property
- The state chooses guardians for minor children
- Unmarried partners or close friends may be excluded entirely
- Probate can create delays and extra costs
Even simple estate plans provide clarity and protection for loved ones.
2. Using DIY Templates Instead of a Lawyer
Online forms can be tempting—but they may not follow California’s legal requirements.
Hypothetical Example:
Suppose someone fills out a generic will they found online. It might seem complete, but if it lacks certain formalities—like proper signatures or witness rules—the court could question its validity. This might lead to extended probate proceedings.
What Could Go Wrong:
- Vague or conflicting terms
- Documents not valid under California law
- No guidance for funding a trust
- No review to catch mistakes
Estate planning isn’t just paperwork – it’s about making sure your intentions are clear and enforceable. In addition, if any litigation were to arise in the future, your attorney will be able to advise as to your wishes and desires.
3. Failing to Update the Plan
Your estate plan should reflect your current life situation.
Hypothetical Example:
Someone creates a will early in life and then has more children but doesn’t revise their documents. If they pass away, some family members may not be named, leading to confusion or even litigation.
Update your plan when you:
- Marry or divorce
- Have or adopt children
- Buy or sell property
- Experience a death in the family
- Move to another state
Review every 3–5 years—even if things seem stable.
4. Forgetting to Fund the Trust
Creating a trust is only half the job—it must be funded properly.
Hypothetical Example:
A person sets up a trust but never moves their house into it. When they pass away, the house remains titled in their name, potentially triggering probate proceedings despite the trust’s existence.
Funding a trust may involve:
- Transferring property deeds
- Re-titling bank and brokerage accounts
- Updating life insurance beneficiaries
- Listing the trust as owner or beneficiary
An unfunded trust can’t do its job.
5. Not Coordinating With Your Accounts
Your estate plan should match your account titles and beneficiary forms.
Hypothetical Example:
Someone updates their will to leave a life insurance policy to their children—but forgets to change the policy beneficiary, which still lists an ex-spouse. Depending on the circumstances, the insurance company might pay the named beneficiary, not the intended recipients.
Be cautious of:
- Outdated beneficiaries
- Joint accounts that override a will
- Conflicting instructions between documents
Misalignment can lead to outcomes you didn’t intend.
How to Avoid These Mistakes
The best protection is a well-prepared estate plan created by an attorney who understands California law.
When you work with our office, we:
- Ensure your documents are legally valid and enforceable
- Coordinate your titles, accounts, and beneficiaries
- Help fund your trust correctly
- Review and update your plan as needed
We also handle probate and estate litigation, should any issues arise.
FAQs
Q: I don’t have a lot of assets. Do I still need an estate plan?
A: Yes, but the form of estate plan will depend upon you needs. . Even basic plans avoid court delays, name guardians for your kids, and protect sentimental items or smaller financial accounts. A simple and quick consultation with our attorney can determine whether you need a more or less extensive estate plan, or whether other options may be more suitable for your current situation.
Q: What’s the difference between a will and a trust?
A: A will must go through probate. A trust avoids it, keeps things private, and allows faster distribution. Many people benefit from having both.
Q: What happens if my beneficiary form says one thing, and my will says another?
A: The beneficiary form wins. Always make sure your plan and accounts say the same thing.
Q: Can’t I just use a free template online?
A: You can—but it’s risky. Templates often don’t meet legal requirements in California and lack critical details. They are also not reviewed by a licensed attorney. Mistakes can’t generally be fixed after death. If mistakes can be fixed, the process can be costly and in some cases, litigious.
Q: How often should I review my estate plan?
A: Every 3–5 years or after major life events like marriage, divorce, birth, or a significant financial change.
Ready to Protect Your Family?
Don’t wait until it’s too late.
If you need help reviewing or creating your estate plan, call Randal P. Hannah, Attorney at Law at (909) 608-1220 or contact us online to schedule a consultation.
We’ll help you create a plan that works when your family needs it most.
