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Estate planning isn't complicated, but many people get it wrong. The consequences of these mistakes don't affect you; they affect your family during one of the most difficult times of their lives.
These common mistakes can cause family conflict, legal battles, unnecessary taxes and outcomes no one wanted.
The good news? They're all completely preventable.
Here are the 10 most common (and costly) estate planning mistakes, and how to avoid them.
This is the biggest mistake by far. According to recent surveys, only 32% of Americans have a will. That means 68% are leaving their family's future entirely to state law and court decisions.
Why people make this mistake:
The real cost: If you die without an estate plan:
The fix: Stop reading right now and create a will. In less than 20 minutes, you could make a free will with Herbie’s Basic Will platform, or upgrade to a subscription for complete planning needs. Once you have something—anything—in place, you can refine it later. But you need a starting point!
Many parents choose guardians based on obligation rather than what's actually best for their children.
Common guardian mistakes:
The real cost: Your children might end up with someone who isn't equipped to raise them. Or worse, family members might fight in court over custody while your children wait in temporary care.
The fix: Choose based on who would actually be the best parent to your children. Consider their values, stability, relationship with your kids, and willingness to take on the responsibility. Then actually ask them. And name at least one alternate guardian in case your first choice can't serve.
Beneficiary designations on retirement accounts, life insurance and bank accounts override your will. Yet people frequently forget to update them after major life changes.
Common scenarios:
The real cost: Your assets might go to people you haven't spoken to in years while your spouse and children get nothing. And it's all perfectly legal, as beneficiary designations generally override your will.
The fix: Review all beneficiary designations right now:
Update anything that's wrong. Then review again whenever you experience a major life event (marriage, divorce, birth, death). It’s probably best to revisit these annually.
Creating a trust is only half the job. If you don't actually transfer assets into the trust (called "funding"), the trust can't protect them.
What this looks like:
The real cost: Assets not in the trust go through probate anyway, exactly what you created the trust to avoid. You wasted thousands of dollars on a trust that doesn't work!
The fix: After creating a trust, immediately begin funding it:
Or use a platform like Herbie, which helps you make a trust and then supports you with funding the trust.
You can't leave significant assets directly to children under 18 (or 21 in some states). Courts require an adult to manage the money until they reach legal age. And then they get it all at once.
What this looks like:
The real cost: A court appoints a guardian or conservator to manage the money with court oversight, annual accountings and legal fees. Then your child receives everything in a lump sum at 18 or 21—whether they're ready or not.
The fix: Don’t name minor children directly as beneficiaries. Instead:
Your executor (for a will) or trustee (for a trust) has enormous responsibility. Choosing the wrong person creates chaos.
Common mistakes:
The real cost: Your estate administration may take years instead of months. Assets might be mismanaged. Beneficiaries might not receive what you intended. Your chosen person might decline, forcing the court to appoint someone.
The fix: Choose someone who is:
Ask them first. Name an alternate. And consider a corporate trustee for very large estates or complex situations.
Most estate plans focus on what happens after death, ignoring the very real possibility of incapacity from illness or injury.
What's missing:
The real cost: If you're incapacitated without these documents, your family must go to court to get conservatorship or guardianship. This process:
The fix: Every estate plan should include:
Also, if you transfer assets to a Revocable Living Trust, then those assets can be used by a Trustee for your benefit even if you’re incapacitated.
These documents help during incapacity, not just after death. With a Herbie subscription, you can download applicable state forms.
You have tons of digital assets: online accounts, digital photos, business websites, social media accounts. But can your family access them?
Common problems:
The real cost: Digital assets become inaccessible. Family photos disappear. Online businesses shut down. Your digital legacy vanishes.
The fix: Create a digital asset inventory listing:
Store this securely (not in your will, which becomes public) and tell your executor where to find it.
Also consider cryptocurrency:
Estate plans aren't "set it and forget it." Life changes, and your plan needs to change with it. This is why Herbie is a subscription platform – we’re always here for you!
Triggers that require updates:
The real cost: Your plan becomes outdated and might not reflect your current wishes. You might leave assets to an ex-spouse. Your deceased parent might still be named as guardian. Your plan might not comply with new state laws. Your new state of residence doesn’t treat your property the same as your former state.
The fix: Review your estate plan:
Choose an estate planning solution that makes updates easy. With Herbie, you can update your documents anytime at no additional cost rather than paying attorney fees for every change.
While most families won't face federal estate taxes, poor planning may create unnecessary income tax burdens for beneficiaries.
Common mistakes:
The real cost: Your beneficiaries might pay thousands more in taxes than necessary. For larger estates, this could mean hundreds of thousands in unnecessary tax liability.
The fix: For most families, basic planning is sufficient. But if your estate exceeds $1 million or includes highly appreciated assets, consider consulting with a tax professional about tax-efficient strategies.
Perhaps the costliest mistake of all is simply waiting. Every day without an estate plan is a day of unnecessary risk.
Why it matters: You never know when something might happen. Young, healthy people die unexpectedly. Accidents happen. Illness strikes without warning.
Your family deserves protection today, not "eventually."
The fix: Create a basic estate plan right now. Start with the essentials:
Perfect isn't the enemy of good—good is the enemy of nothing. Get something in place, then refine it over time.
Don't let your family become a cautionary tale. Here's what to do right now:
Today: Create a basic will with Herbie (free, 20 minutes), or sign up for a Herbie subscription
This week:
This month:
This year:
Estate planning mistakes are costly, but they're preventable. The tools exist to create high-quality plans affordably and efficiently.
You don't need to spend thousands. You don't need months of meetings. You just need to take action.
Start with Herbie's free will or subscription →
Your family's future is too important to leave to chance, or to postpone any longer.
