The 5 Biggest Estate Planning Mistakes We See (and How to Avoid Them)

Guidance from a Birmingham, Alabama estate planning attorney.

When it comes to protecting your family and your legacy, estate planning is one of the most important steps you can take. Yet, many people either avoid the process altogether or make critical mistakes that undermine their intentions. At our firm, we regularly see clients who thought they had “everything in order,” only to find out their plan left gaps that could create confusion, conflict, and unnecessary expense.

The 5 Biggest Estate Planning Mistakes

1. Procrastination

The most common mistake is simply putting it off. According to a 2025 survey by Caring.com, only 24% of Americans have a will.  Life gets busy, and estate planning can feel overwhelming. But waiting too long carries real risks. If something happens before your plan is in place, state law—not your wishes—will determine who makes decisions for you and how your assets are distributed.

If you are curious about the Alabama default distribution plan, you can click here to read our blog article, The Surprising Consequences of Dying without a Will or Trust in Alabama.

What you should do: start now. Even a basic plan is better than no plan. You can always update your documents as your life and goals change.

2. Not Naming Guardians for Minor Children or Dependents

Parents of young children (and caregivers of dependents with special needs) sometimes avoid thinking about the “what ifs.” But failing to name guardians in your estate plan can leave the decision to the courts—causing stress, conflict, and uncertainty for your family.

What you should do: work with an attorney to create a will and designate who will care for your children or dependents. Have open conversations with the people you are considering, and name backups in case your first choice cannot serve.

3. Outdated Documents

Estate planning is not a one-time project. Life changes—marriage, divorce, new children or grandchildren, moving, or changes in financial circumstances—all can impact your plan. Outdated documents may no longer reflect your wishes or comply with current laws.

What you should do: review your plan every 3–5 years, or sooner after major life events. Keep your documents current so they always match your intentions.

4. Neglecting Beneficiary Designations

Certain assets—like life insurance policies, retirement accounts, and payable-on-death accounts—pass directly to the beneficiaries named on the account, not according to your will or trust. If those designations are outdated (e.g., naming an ex-spouse or a deceased person), your assets may not go where you intended.

What you should do: regularly review and update your beneficiary designations. Make sure they align with your overall estate plan.

5. Improperly Funded Trusts

Creating a trust is only the first step. A trust that is not funded—meaning your assets are not retitled into it—does not provide the benefits you intended, such as avoiding probate or protecting assets for your heirs. A trust only controls the assets it owns.

What you should do: work with your attorney to ensure your trust is properly funded. This may include changing titles on real estate, updating financial accounts, or transferring ownership of personal property.

Other Common Estate Planning Mistakes

While the five above are the most frequent, here are some other missteps we often see:

• Failing to Plan for Incapacity: not having powers of attorney or healthcare directives in place can leave your family without the authority to make decisions if you become incapacitated.

  
  

• Choosing the Wrong Executors or Trustees: picking someone who is not organized, trustworthy, or willing to serve can cause major problems.

  
  

• Not Considering Taxes: without proper planning, your estate could face unnecessary tax burdens, reducing what passes to your loved ones.

  
  

• DIY Estate Planning Gone Wrong: online forms or generic templates often do not meet state-specific legal requirements or account for unique family circumstances.

  
  

• Failing to Communicate Your Plan: even the best plan can create confusion if your family does not know your wishes or where to find your documents.

  
  

• Failing to Document Your Accounts and Personal Information: if your loved ones or executors do not have access to your financial and personal information, assets may be overlooked and bills may go unpaid. To prevent this, we recommend recording your key information and storing it securely. This ensures your loved ones can manage your bills, handle your health care matters, and administer your estate if needed. Our Family Blueprint can serve as a helpful guide.

  
  

The Bottom Line

Estate planning is about more than documents—it is about protecting the people you love. By avoiding these common mistakes, you can create a plan that truly reflects your wishes and provides peace of mind for your family.

Your Next Step

As you move forward with your estate planning, we invite you to contact our team at Provident Law / Estate Planning LLC. We are here to guide you through the process, ensuring your plan is tailored to your unique needs and goals. Whether you are creating a will, establishing a trust, planning for incapacity, or reviewing existing documents, we are here to provide the personalized guidance you need. Reach out today to schedule a consultation and take the next step to give your family peace of mind.

About the Author

Colin McMichen is an experienced attorney and the founder of Provident Law / Estate Planning LLC, a Birmingham, Alabama-based firm. With a focus on estate planning and probate law, Colin is dedicated to helping individuals and families navigate complex legal matters with confidence.