10 Common Estate Planning Mistakes You Should Avoid

Many people put off estate planning, thinking they have plenty of time. But life is unpredictable, and without a solid plan, your loved ones could face unnecessary stress and legal battles.

At Bassett Murray Law Group, PLLC, we’ve spent decades helping Michigan families protect their futures. We’ve seen firsthand the common mistakes that can cause real problems down the line.

To help you avoid costly missteps, we’ve compiled a list of 10 common estate planning mistakes—and what you can do to prevent them.

1. Not Having an Estate Plan at All

Many people think estate planning is only for the wealthy or elderly, but that’s simply not true. If you pass away without a will in Michigan, the state decides who gets your assets based on intestate succession laws.

That means your spouse, children, or even distant relatives may inherit—whether you intended it or not. If you have minor children, the court will also determine their guardian.

Without a plan in place, your loved ones could face delays, legal battles, and unnecessary stress. Having a solid estate plan ensures your wishes are honored regardless of age or financial situation.

2. Failing to Update Your Estate Plan Regularly

An estate plan isn’t a “set it and forget it” document. Major life events—marriage, divorce, having children, losing a loved one, or changes in financial circumstances—should prompt a review of your plan.

We recommend reviewing your estate plan:

• Every three to five years
• After major life events (birth, death, marriage, divorce, relocation)
• When tax laws change

Outdated documents can cause confusion and lead to unintended consequences, like an ex-spouse inheriting your assets or a deceased beneficiary still being named in your will.

3. Neglecting to Name (or Update) Beneficiaries

Certain assets—like life insurance policies, retirement accounts, and payable-on-death accounts—pass directly to the beneficiaries listed on them, regardless of what your will says.

If you haven’t named a beneficiary, or if your designations are outdated, your assets could end up in the wrong hands or get tied up in probate. Conflicting beneficiary designations can also lead to legal disputes and unnecessary delays.

It’s equally important to name contingent beneficiaries in case your primary choice is unable to inherit.

Failing to plan properly can also create unexpected tax burdens, especially with retirement accounts. Reviewing your designations regularly helps avoid these issues.

4. Choosing the Wrong Executor or Trustee

The executor of your will or trustee of your trust is responsible for carrying out your wishes. Choosing the wrong person can lead to delays, family disputes, or even financial mismanagement.

Your executor or trustee should be:

• Trustworthy and responsible
• Financially competent
• Capable of handling paperwork and deadlines
• Able to communicate with beneficiaries and handle disputes

If you’re unsure who to choose, a professional fiduciary may be a better option.

5. Overlooking Digital Assets

In today’s world, digital assets are just as important as physical ones, yet many people forget to include them in their estate plans.

Online banking, investment accounts, social media profiles, cryptocurrency, e-books and music, and even personal photos stored in the cloud can become inaccessible if not properly planned for.

To protect these assets, designate someone you trust to manage them and provide clear instructions on how they should be handled. Keep a secure, up-to-date list of account logins and passwords in a safe place or use a password manager.

Without a plan, your loved ones may face legal barriers or lose access to valuable digital property.

6. Not Planning for Debts

Many people focus on who will receive their assets but forget about the debts they leave behind.

Unpaid debts don’t just disappear; they can reduce the inheritance your loved ones receive and even lead to legal complications.

In Michigan, debts are typically paid from the estate before assets are distributed. While some debts, like mortgages or car loans, may transfer to heirs if they want to keep the property, credit card debt and medical bills are handled through probate or a trust.

Certain debts, like federal student loans, may be forgiven upon death. A well-structured estate plan can help protect your assets and reduce the financial burden on your family.

7. Lack of Communication with Loved Ones

Talking about estate planning can be uncomfortable, but avoiding the conversation often leads to confusion, disputes, or even legal battles later on.

Your family should understand your wishes, especially when it comes to who will handle your estate, inherit certain assets, or make decisions if you become incapacitated.

Difficult conversations can be easier when approached with honesty and clarity. Consider writing down your intentions, holding a family meeting, or involving a neutral third party, like an attorney, to help guide the discussion.

Clear communication can prevent misunderstandings later and ensure your loved ones are prepared.

8. Being Disorganized with Important Documents

Even the best estate plan is useless if no one can find it.

Make sure you:

• Keep all estate planning documents in a secure but accessible location
• Provide copies to your executor, trustee, and attorney
• Maintain a list of assets, debts, and account details
• Review and update your records periodically

Being organized saves time, money, and stress for your loved ones.

9. Trying to Handle Estate Planning on Your Own

DIY estate planning might seem like a cost-effective solution, but small mistakes can lead to big problems. Michigan has specific legal requirements for wills, trusts, and power of attorney documents.

• Common DIY mistakes include:
• Failing to meet Michigan’s legal requirements for a valid will
• Using ineligible individuals as witnesses or notary
• Creating contradictions or using unclear language in the document
• Using legal terms incorrectly, leading to an undesirable outcome
• Incorrectly titling assets, leading to unintended probate
• Overlooking tax-saving opportunities
• Failing to include incapacity planning (financial and medical power of attorney)

Estate planning isn’t just about filling out forms—it’s about ensuring your wishes are legally enforceable.

10. Not Considering Non-Probate Options

Many people don’t realize that not all assets go through probate.

Non-probate assets include:

• Life insurance policies
  Retirement accounts (401k, IRA)
  Transfer-on-death (TOD) or payable-on-death (POD) accounts
  Trust assets

Using trusts and beneficiary designations can help speed up asset distribution and reduce court involvement. However, if these tools are not set up properly, they can create unintended tax consequences or conflicts.

Protect Your Family’s Future in Michigan – Contact Bassett Murray Law Group

Estate planning isn’t just about documents—it’s about protecting the people you love and ensuring your wishes are honored. Without a solid plan, your family could face unnecessary stress, legal hurdles, and financial setbacks.

At Bassett Murray Law Group, PLLC, we are invested in improving lives by helping Michigan families create clear, legally sound estate plans.

Whether you need to draft a will, set up a trust, or update existing documents, we’re here to guide you every step of the way.

You can call our Ann Arbor office at 734-930-9200, or if you are in the Petoskey area, call 231-427-2292.