Common Estate Planning Mistakes and How to Avoid Them

Estate planning is one of the most important steps you can take to protect your loved ones and ensure your wishes are honored, but it’s often delayed or overlooked. Many assume it only applies to the ultra-wealthy, but that’s far from the truth. Regardless of asset size, having a plan in place can prevent confusion, reduce costs, and provide clarity during difficult times.

At Bradley, Foster & Sargent, we help clients align their estate plans with their broader financial goals, collaborating with qualified trusts and estates attorneys to ensure those plans are implemented thoughtfully and effectively.

One of the most common estate planning mistakes is simply not having a plan at all. Many  assume that without significant wealth or complex tax issues, estate planning doesn’t apply to them. In reality, everyone should have foundational documents in place to ensure their wishes are honored and their loved ones are protected.

• A Living Will
  Specifies your preferences for medical care if you’re incapacitated.
• Health Care Power of Attorney
  Appoints someone to make health care decisions on your behalf.
• Financial Power of Attorney
  Allows someone to manage your financial matters if you’re unable to do so.
• Up-to-Date Beneficiary Designations
  Ensures that retirement accounts and life insurance policies pass to the right individuals.

Neglecting to update your beneficiary designations can result in assets being passed on to someone you no longer intend, such as a former spouse, regardless of your current wishes.

If you have minor children, naming a guardian is one of the most important parts of your estate plan. While the decision can be emotionally challenging, avoiding it only creates uncertainty for your children’s future.

Steps to Take

• Have a thoughtful conversation with your partner or co-parent
• Document your chosen guardian in your estate plan
• Revisit the decision over time as circumstances change

Many people create an estate plan once and never revisit it. But life changes such as marriage, divorce, the birth of children, changes in financial status, or selling a business should prompt a review and potential updates to your plan.

• Review your documents every few years or after major life events
• Make sure account titles are appropriate (individual, joint, transfer-on-death, etc.)
• Confirm that named decision-makers are still the right choices

For individuals and couples whose estates exceed the federal estate tax exemption (currently nearly $30 million for married couples), proactive planning is essential. Illiquid assets, such as a closely held business or real estate, can create liquidity challenges when estate taxes come due.

• Start planning early to help reduce potential estate tax liability
• Explore strategies such as lifetime gifting, family trusts, or charitable vehicles
• Consider liquidity needs to avoid forced sales of valuable assets
• Coordinate with a qualified trusts and estates attorney to ensure your legal documents reflect your goals and are structured properly

We help clients think strategically about their estate plans and align them with their broader financial picture. We work closely with trusts and estates attorneys to ensure that planning is cohesive, comprehensive, and tailored to each client’s unique needs.

Contact the team at Bradley, Foster & Sargent to schedule a consultation with one of our experienced advisors. Whether you’re just getting started or revisiting an existing plan, we’re here to help guide you every step of the way.