Common Mistakes to Avoid in Estate Planning
June 10, 2025
Estate planning is one of the most important steps you can take to protect your assets and make sure your loved ones are cared for after you're gone. While many people know they should have a will or a trust, far fewer take the time to put together a plan that truly reflects their wishes and safeguards their family.
Mistakes in estate planning are all too common, and they often go unnoticed until it's too late to fix them. Many of these issues are entirely avoidable with some careful thought and the right legal guidance. Here at the Law Offices of Julie A. Schejbal, CHTD, in Dunkirk, Maryland, we’ll give you the attention and help you need to pursue the outcome and future you want.
Not Having a Plan at All
One of the biggest mistakes people make is simply not creating an estate plan in the first place. It might seem like something only the wealthy need to think about, but that couldn't be further from the truth.
Procrastinating: Many people delay estate planning because they think it's only for later in life. Unfortunately, accidents and illnesses can strike at any age. Having a plan in place gives peace of mind and a clear path for your loved ones to follow.
Relying on default state laws: Without a will or trust, Maryland's intestacy laws decide who gets what. That may not align with your wishes and can cause unnecessary conflict.
Assuming a spouse will automatically receive everything: While spouses often have rights to inherit, not having a will or trust in place can open the door to disputes or complicated legal proceedings.
Creating an estate plan doesn't have to be overwhelming, and starting with the basics can make a big difference.
Failing to Update Your Documents
Once you've created an estate plan, the work isn't over. Life changes, and your plan should change with it.
Major life events: Marriage, divorce, births, deaths, and even changes in your financial situation should all prompt a review of your estate planning documents.
Outdated beneficiaries: Retirement accounts, life insurance policies, and other assets with named beneficiaries can pass outside of your will or trust. Make sure those designations still reflect your current wishes.
Changing laws: Tax laws and state rules, including those in Maryland, can shift over time. Regular reviews help you adapt to these changes.
Think of your estate plan as a living document. It should grow and evolve along with your life.
Overlooking Digital Assets
In today's society, digital assets are just as real as physical ones. Ignoring them can create real problems for your heirs.
No access information: If no one knows your passwords or how to access your online accounts, those assets can be lost.
Unclear instructions: Without directions, it's difficult for your executor to know what to do with your email, social media, or financial accounts.
Ignoring intellectual property: Blogs, websites, and digital creations may have financial or sentimental value that should be addressed in your plan.
Your estate plan should include a digital asset inventory and clear instructions for how those assets should be handled.
Forgetting About Taxes
Taxes can take a big bite out of your estate if you're not careful. It's a mistake to assume your estate won't be subject to taxation.
Underestimating estate taxes: Maryland has both an estate tax and an inheritance tax, which can surprise families who aren't prepared.
Poor planning for retirement accounts: Distributions from IRAs and 401(k)s can create tax consequences for your heirs if not handled properly.
Failing to use tax-saving strategies: Tools like charitable giving, lifetime gifts, and irrevocable trusts can help reduce the taxable value of your estate.
A good estate plan looks at more than just who gets what. It should also consider how taxes might impact your loved ones.
Appointing the Wrong Executor or Trustee
Choosing the right person to manage your estate is critical. The wrong choice can cause delays, mistakes, or even legal battles.
Picking someone unqualified: An executor or trustee should be responsible, organized, and capable of handling financial matters.
Ignoring family dynamics: Tension between siblings or other heirs can be made worse by an ill-chosen executor.
Not naming backups: If your first choice can't serve, you need someone else lined up to step in.
The role of executor or trustee comes with a lot of responsibility. Choose someone who can handle the job and keep things running smoothly.
Neglecting to Fund a Trust
Creating a trust is a great way to manage your assets, but it's only effective if you actually transfer assets into it.
Forgetting to retitle assets: If you don't move assets into the trust's name, they won't be covered by it.
Leaving assets outside the trust: This can mean those assets still go through probate, defeating one of the main reasons for having a trust.
Not coordinating with other documents: Your will, beneficiary designations, and trust should all work together.
Think of a trust as a bucket. If you don't fill it, it's just an empty container.
Not Planning for Incapacity
Estate planning isn't just about what happens after you die. It's also about what happens if you become unable to make decisions for yourself.
No power of attorney: Without this, no one may be able to handle your financial affairs if you're incapacitated.
Lack of a healthcare directive: This document spells out your medical wishes and who can make decisions on your behalf.
Overlooking long-term care: Planning for how to pay for assisted living or nursing home care is a key part of estate planning.
A solid estate plan should protect you during your life as well as after it. For more information, contact Julie A. Schejbal, Attorney at Law.
Transitioning From Mistakes to Solutions
Now that we've covered some of the most common mistakes people make in estate planning, let's shift gears. It’s just as important to understand how to do things right. The next sections will give you some tools and ideas to help you build a more effective plan.
Keeping Communication Open With Loved Ones
Estate planning often involves tough conversations, but avoiding them can create confusion or resentment later.
Sharing your intentions: Letting your heirs know what to expect can reduce surprises and hurt feelings.
Explaining your choices: If you're leaving more to one child than another, or appointing a particular executor, share your reasoning.
Encouraging questions: An open dialogue can help prevent misunderstandings and set expectations.
Your estate plan should reflect your values, and open communication helps your family understand what those are.
Coordinating All the Pieces
An estate plan is more than just a will or trust—it's a full suite of tools that should all work together seamlessly.
Reviewing all accounts and titles: Make sure your assets are titled in a way that supports your plan.
Aligning beneficiary designations: Conflicting instructions between your will and retirement accounts can cause problems.
Keeping a master list: Include contact info for your attorney, financial advisor, and key account information in one place.
When all the parts of your estate plan are working in harmony, it makes things much easier for your loved ones.
Reach Out Today
Estate planning isn't just about paperwork. It's about protecting your family, preserving your legacy, and making sure your wishes are followed. Whether you're just starting out or reviewing an existing plan, working with a knowledgeable estate planning attorney can make all the difference. Law Offices of Julie A. Schejbal, CHTD, serves clients in Dunkirk, Maryland, and the surrounding areas of Calvert County, Prince George’s County, Charles County, and St. Mary's County. Contact us today.