5 Common Estate Planning Mistakes—and How to Avoid Them

Estate planning can feel overwhelming, but it’s one of the most critical tasks you’ll ever complete. The tricky part? Any mistakes you make most likely won’t show up until you’re gone, leaving no room to correct them. These errors can create lasting headaches for your loved ones, but the good news is they're easily avoidable with some forward thinking and planning. Whether you're just starting or updating an existing plan, here’s how to avoid the five most common pitfalls in estate planning.

1. Not Having a Plan at All

Let’s tackle the biggest mistake head-on: no estate plan. If you don’t have a plan, its fine, as long as you are okay with the government deciding who gets your assets. I’m sure they know exactly what you want to happen after you’re gone. The thing is, you don’t have to be rich or elderly to create an estate plan. It’s just a roadmap for how your assets will be distributed, ensuring your loved ones or charities are taken care of.

Take action: Creating even a basic plan—like a simple will—provides clarity and protection. We can help you navigate the process without making it feel complicated.

2. Not Talking About Your Plan

Keeping your estate plan a secret is the fastest way to confuse everyone. I say it all the time but, open communication is key. Your family and the executor need to know what the plan is, where to find the necessary documents, and what to expect. It’s also an opportunity to address any concerns or misunderstandings, it is also an opportunity to make sure the beneficiaries actually want what you’re leaving behind.

Take action: Have a candid conversation with your family and the key people involved so there are no surprises. Be clear about the location of your documents—whether they’re stored in a safe, with your attorney, or digitally. This is where our “Family Estate Organizer” really comes into play.

3. Overlooking Your Legacy Beyond Money

When people think of estate planning, they often focus solely on financial assets. But your legacy isn’t just about dollars and cents. This is your chance to leave meaningful, personal bequests. Whether it’s family heirlooms, donations to charity, or personal mementos, don't forget the non-financial gifts that can deeply impact those you leave behind.

Take action: Think broadly. Is there a charity you love? A family member who cherishes that old photo album? These decisions can carry emotional weight, so plan thoughtfully.

4. Failing to Inventory All Your Assets

We’ve all taken a coat out of the closet after a long summer and found $5 in the pocket. Just like that random $5 bill, it’s easy to lose track of assets over the years, especially as you accumulate things like retirement accounts, cryptocurrency, or even safety deposit boxes. Without an up-to-date record, no one will know to look for them and your beneficiaries could miss out on significant funds—like the estimated 20% of 401(k) funds that are forgotten.

Take action: Regularly update an inventory of your assets, including account numbers and access information. This will ensure that nothing gets lost in the shuffle after you’re gone.

5. Forgetting Estate Planning Is Also About Life

Estate planning isn’t just for what happens after you’re gone—it’s also about protecting yourself while you’re alive. A comprehensive estate plan should include powers of attorney for financial and healthcare decisions. These documents give trusted individuals the ability to make critical decisions if you’re ever unable to do so.

Take action: Establish a financial and healthcare power of attorney to ensure that someone you trust can make decisions on your behalf if necessary.

Bonus: Digital Accounts

We live in a digital age, and so should your estate plan. What happens to your social media accounts, cloud storage, and digital photos? These are modern assets that can’t be forgotten.

Take action: Include your digital life in your estate plan by leaving behind access information and clear instructions for what you want to happen with your online accounts.

By addressing these common mistakes, you can save your loved ones from future headaches and ensure your estate plan is as solid as it can be. At FSC Wealth Advisors, we specialize in making sure your estate plan fits in and works together with your financial plan, so you can leave a meaningful legacy without the unnecessary stress.

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