3 Estate Planning Mistakes That Can Derail a Legacy
Estate planning often gets pushed to the bottom of the to-do list. It feels distant, something to revisit later, maybe next year. That delay can have real consequences, especially when your goals include protecting loved ones and preserving what you’ve built.
This topic becomes even more relevant around the holidays. That’s when families are together, and conversations about the future (though sometimes uncomfortable) naturally come up.
“Whether you’re reviewing your plans or starting from scratch, avoiding common estate planning missteps can make all the difference in ensuring your legacy is passed on the way you intend,” says Joseph Aspelund, Director of Insurance Sales & Asst. Branch Manager at David Lerner Associates, Inc.
Here are some estate planning mistakes that can derail your legacy.
Mistake #1: Not Having a Plan at All
One of the most common estate planning errors is simply not having a plan. Fewer Americans are creating wills. Just 24% have one in 2025, down from 33% in 2022, according to a study done by Caring.com.
Many people assume a will is only necessary for those with significant assets or advanced age. In reality, any adult with savings, property, or dependents can benefit from having clear instructions in place.
Without an estate plan, your assets may be distributed based on state laws rather than your personal wishes. That could delay the process, create unexpected tax consequences, or lead to family disagreements. Probate can take anywhere from a few weeks to over a year, depending on complexity and state laws.
Your estate plan should address more than just who gets what.
It should include:
- A will or trust
- Guardianship instructions for minor children, if applicable
- Healthcare directives and powers of attorney
- Clear instructions for digital assets and accounts
By getting your wishes on paper now, you avoid leaving your family in the dark later.
Mistake #2: Letting Paperwork Get Outdated
An estate plan is not a one-and-done project. Life changes, and your plan should evolve with it. Changes in family dynamics, tax laws, or your own financial situation may require updates.
Outdated beneficiary designations are a particularly easy detail to overlook. Even if your will says one thing, accounts like retirement plans, insurance policies, and investment accounts may follow the beneficiary listed on file. If that’s an ex-spouse or someone who is no longer part of your intended plan, the outcome could be far from what you wanted.
Regular reviews with your investment counselor can help ensure everything stays aligned with your current goals and relationships. A good rule of thumb: review your estate documents every 3-5 years or after any major life event such as a marriage, divorce, birth, death, or sale of property.
Mistake #3: Ignoring the Tax Impact
Taxes may not be the first thing on your mind when thinking about your legacy—but they are an essential part of a secure estate plan. Without proper planning, your heirs could face unnecessary tax burdens that reduce what they actually receive.
For example:
- Certain retirement accounts may trigger income taxes when inherited.
- Large estates may be subject to federal or state estate taxes. For 2025, the lifetime gift/estate tax exemption is $13.99M
- Gifting strategies or trust structures left unexamined could create avoidable complications.
This is where professional guidance really matters. Your investment counselor can work with your legal and tax team to make sure your estate plan is built with these issues in mind. The right planning can help minimize taxes and keep more of your assets with the people or causes that matter to you.
Conclusion
Estate planning isn’t just for the ultra-wealthy. And it’s not something you create and forget. It’s an ongoing process that helps protect your wishes, your family, and your legacy.
The holiday season may be a good time to revisit your plan or have a thoughtful conversation with loved ones about creating one. It’s a practical way to bring clarity and confidence into the future.
Are you confident your estate plan still reflects your goals? Connect with an investment counselor at David Lerner Associates to review your current strategy and explore ways to protect your legacy.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual’s circumstances. Each taxpayer should seek independent advice from a tax professional based on his or her circumstances.