The Biggest Estate Planning Mistakes (and How to Avoid Them)
Estate planning isn’t about having a pile of documents tucked away in a drawer. It’s about making sure your plan will actually work when it matters most — when you’re no longer around to explain it or fix it. Too often, even the most well-intentioned plans fall short because of a few critical missteps. As a Nebraska estate planning attorney, I see these mistakes pop up all the time. Here are some of the most common ones — and how to avoid them.
Mistake 1: Failing to Update Your Plan
Life changes — families change, finances change. But many people forget that their estate plan needs to change too. If you created your plan years ago and haven’t touched it since, chances are parts of it no longer reflect your current wishes. Marriage, divorce, a new child, a grandchild, the death of a loved one, significant asset changes — any of these can have a major impact on your estate plan. If your documents aren’t keeping up, your assets may not end up where you intended. A good rule of thumb is to review your plan every few years or after any major life event. Small gaps can become big problems if they aren’t caught early.
Mistake 2: Not Planning for Long-Term Care
A lot of people assume Medicare will cover nursing home or assisted living costs — but it won’t. Without a clear plan, long-term care expenses can drain your estate, leaving little behind for your family. Long-term care planning should be part of any comprehensive estate plan. This doesn’t mean everyone needs long-term care insurance, but you do need to understand your options — whether that’s self-funding, Medicaid planning, or some combination. Ignoring this piece of the puzzle can undo even the best-crafted plan.
Mistake 3: Overlooking Beneficiary Designations
I can’t tell you how many times I’ve seen beautifully drafted wills and trusts — and then the retirement accounts or life insurance policies still name an ex-spouse or an outdated beneficiary. Accounts with beneficiary designations pass outside of probate and outside of your trust, so if those designations aren’t aligned with your plan, they can derail it. And tax consequences matter too. Different assets are taxed differently when inherited — an IRA passed to a child can have very different tax treatment compared to a life insurance policy. It’s important to think about both the legal and tax consequences when setting up these designations — and to review them regularly.
Mistake 4: Focusing on Documents Instead of Strategy
Having a will or trust is a good start — but estate planning is about more than signing documents. It’s about how all the pieces fit together. How will your assets actually transfer? How can you reduce unnecessary taxes? How can you avoid probate if that’s a goal? How do you protect assets from creditors or other risks? A stack of signed papers won’t accomplish that on its own. A strategic plan will. That’s why working with an experienced Lincoln estate planning attorney is so important — someone who will help you think through the bigger picture and build a plan that actually works.
Mistake 5: Relying on DIY Online Forms
Online forms can be tempting, but estate planning is nuanced. One wrong clause, one missing signature, or one piece of bad advice can cause your plan to fail — or trigger an expensive court battle for your family. It’s simply not worth the risk. Partnering with a qualified attorney ensures that your documents are legally sound and that your overall plan reflects your intentions and complies with Nebraska law.
Other Common Issues That Get Missed
Forgetting to fund your trust. If you create a trust but don’t retitle assets into it, the trust can’t do its job.
Not coordinating your plan with business interests. If you own a business, your estate plan needs to address succession and control. Leaving this out can lead to disputes or even the loss of the business.
Failing to plan for incapacity. Estate planning isn’t just about what happens after death — it also needs to cover what happens if you’re alive but unable to make decisions. Having strong powers of attorney and health care directives in place is essential.
At the end of the day, estate planning is not a one-time event. It’s an ongoing process — one that protects what you’ve built and makes life easier for your loved ones when they need it most. As a Nebraska estate planning attorney, my goal is to help clients think through these details and avoid the common mistakes that can undermine even the best intentions. If you’re ready to get started — or if you’d like to review an existing plan to make sure it still fits — give me a call at 402-259-0059 or email me at zach@zandersonlaw.com. I’d be happy to help.