The 5 Biggest Estate Planning Mistakes

Estate planning is one of those things people know they should do, but it’s easy to delay or get it wrong.

After working with clients across the West Coast, I see the same five mistakes over and over again. The good news: they’re all quite fixable.

1. Not Having a Plan at All

If you don’t have a plan, the state has one for you. This is the most common mistake. In fact, the majority of people do not have an estate plan. 

If you don’t have a plan:

• Probate is almost guaranteed

• Rigid distribution rules will be imposed by the state

• You have far less say in who manages your finances or healthcare

West Coast angle: Probate in states like California can be especially expensive and time-consuming. Avoiding it is often a primary goal.

The fix is easy: Put a basic plan in place:

• Trust

• Will

• Power of attorney

• Healthcare directive

2. Creating a Plan… but Never Updating It

Life circumstances change and so do laws.

I regularly see plans that:

• Miss new kids or grandkids

• Name the wrong people

• Were built under outdated tax rules

West Coast angle: Estate tax differences matter a lot:

• Oregon (~$1M exemption)

• Washington (~$3M exemption, no portability)

• California (no state estate tax)

Where you live, or plan to live, can dramatically impact your strategy.

Fix: Review your plan every 3-5 years or after major life changes. 

3. Not Funding the Trust

This is the most common “hidden” mistake.

You created a trust, but never moved assets into it.

Result: your trust is little more than a pile of paper.

• Probate still required

• Plan doesn’t work

Fix: Make sure your trust actually owns your assets:

• Real estate (by deed)

• Bank and brokerage accounts (retitled)

• Business interests (assigned)

The trust only works if it’s funded.

4. Getting Beneficiary Designations Wrong

Retirement accounts and life insurance pass by beneficiary designation, not your trust.

Common issues:

• Outdated names (ex-spouses are common)

• Naming minors outright

• No coordination with the overall plan

  
  

West Coast angle: With large retirement accounts (common in Seattle and the Bay Area), mistakes here can create major tax and control issues.

Fix: Align beneficiary designations with your overall plan. Also, coordination with financial planners is critical.

5. Choosing the Wrong People

Your plan depends on the people carrying it out.

Common mistakes:

• Picking the “nice” child instead of the capable one

• Creating conflict between siblings

• Not naming backups

  
  

West Coast angle: Blended families and geographically spread families make this even more important.

Fix: Choose people who are:

• Organized

• Capable

• Willing to serve (i.e., give them a heads up)

  
  

In some cases, a professional trustee is the right move.

Final Thought

A good estate plan isn’t just about documents, it’s about making things easier for your family. I'm always happy to review your situation with you.