Estate planning isn’t just about having a will—it’s about protecting your loved ones, preserving your wishes, and preventing unnecessary court involvement. Unfortunately, even a well-intended plan can fail without the right tools and regular updates. Below are 12 of the most common estate planning mistakes we see—and how to avoid them.
1. No Medical or Incapacity Planning in Place
Without a medical power of attorney, advance healthcare directive, or HIPAA authorization, your family may be unable to access your medical records or make decisions on your behalf during a crisis. This can delay care and force your loved ones into court just to step in. Similarly, a financial power of attorney ensures someone can manage your bills, taxes, or real estate if you become incapacitated.
2. No Legal Authority to Handle Finances
If you become temporarily or permanently unable to manage your finances, and you haven’t designated someone with power of attorney, your family may need to petition a court for conservatorship. This public, expensive, and time-consuming process is easily avoided with proper planning.
3. No Will or Trust to Guide Distribution
Dying without a will (intestate) leaves your estate subject to Colorado’s default rules. This often results in delays, disputes, and unintended heirs. Even with a will, you may still face probate—which can be costly and time-consuming. A revocable living trust offers more control, avoids probate, and provides for seamless asset management in case of incapacity.
4. Ignoring Digital Assets
From photos in the cloud to cryptocurrency wallets, digital assets are often overlooked in estate plans. Without clear legal authority and access instructions, your family could lose irreplaceable memories or assets. Include your digital inventory, login credentials, and a plan for management in your estate plan.
5. No Protection from Divorce, Lawsuits, or Debt
Even the most responsible beneficiaries can face divorce, bankruptcy, or legal claims. Inheritances left outright are fully exposed. A discretionary trust or asset protection trust can help ensure your legacy isn’t lost to a future ex-spouse or creditor.
6. Missing the Opportunity to Pass on Values, Not Just Wealth
An estate plan can be about more than dividing money. If you want to support charitable giving, encourage education, or fund reunions or travel, those wishes can be built into your trust. Some families create legacy statements or include provisions that align with their values.
7. Mishandling Retirement Accounts
Leaving an IRA outright to a loved one can result in a huge tax hit. If the beneficiary takes a lump sum, that entire amount is subject to income tax. A standalone retirement trust allows you to control the pace of distributions, minimize taxes, and add creditor protection for your heirs.
8. Disorganized or Incomplete Records
After a loved one dies, trying to locate key documents or financial accounts can be overwhelming. A comprehensive estate plan should include a centralized record of important assets, accounts, passwords, and documents—kept in a safe, accessible place like a organizer or digital vault like the Legacy Vault.
9. Not Planning for a Surviving Spouse’s Vulnerabilities
If your spouse remarries or falls victim to financial exploitation, your assets may unintentionally end up with someone else. A properly designed trust can protect your surviving spouse while preserving your family’s long-term legacy.
10. No Plan for Sentimental Items
Family feuds often erupt over jewelry, art, or heirlooms—not just money. A personal property memorandum (legally referenced in your will or trust) lets you assign specific items to specific people, helping avoid arguments and hurt feelings.
11. HIPAA Lockouts Prevent Access to Medical Info
Due to strict medical privacy laws, even your spouse may not be able to access your records during a crisis. A signed HIPAA release ensures your chosen people can speak with doctors and get the information they need to support you.
12. Outdated or Stale Estate Plan
Have you reviewed your estate plan since your last move, marriage, divorce, birth of a child, or inheritance? If not, your documents may no longer work as intended—or may even be legally invalid under new laws. Plans should be reviewed every 3–5 years or after any major life event.
Don’t Let These Mistakes Undermine Everything You’ve Worked For
An outdated, incomplete, or overly simple estate plan can leave your loved ones with a mess. At Premier Legacy Law, we help clients build strong, customized estate plans that grow with them—while avoiding these 12 costly missteps.
Schedule a consultation today to protect your family, preserve your legacy, and gain peace of mind for the future.
