Avoid These Common Estate Planning Mistakes With Insights From a Seasoned Estate Planning Attorney

Creating an estate plan may seem like an overwhelming task. There are many pieces involved, and it can be easy to overlook something as you start to put your estate plan together. It’s important to consult with an attorney who specializes in estate planning to carefully guide you through the process to ensure you don’t make mistakes that could cost your loved ones in the future. 

Seasoned estate attorney David R. Okrent, Esq., CPA, managing partner of The Law Offices of David R. Okrent, shares some of the biggest mistakes people make when creating an estate plan and explains how to avoid them.

Not Completing an Estate Plan

One of the most frequent — and costly — mistakes in estate planning is failing to complete the process. As Okrent notes, “People often go through the effort of drafting a will, trust or advance directive but then never follow through.”

This could mean:

• Unsigned documents, so your plan wouldn’t be legally valid.
• Unfunded trusts, meaning assets are never transferred into the trust, rendering it ineffective.
• Disorganized affairs, such as failing to update account titles or beneficiary designations to align with the plan.

Okrent recommends checking with your attorney at least once a year to ensure everything is properly executed and your assets are accounted for. Without that follow-through, even the most thoughtfully crafted plan can fall apart when it matters most.

Forgetting to Update an Estate Plan 

Creating an estate plan early is a smart move. But as life evolves, so should your documents. Okrent emphasizes that major milestones like marriage, having children, buying property or changes in financial status all warrant a review of your estate plan. 

“Estate documents may be valid enforceable documents,” says Okrent. “But if outdated, they may no longer reflect your intentions or have current tax and other law provisions when it’s time to use them.” That could mean outdated beneficiaries, limited usefulness, missing or outdated provisions or even legal complications. To avoid these issues, Okrent recommends reviewing your estate plan annually with your attorney. Keeping your wills, trusts and directives current ensures your wishes are honored, so you and your loved ones aren’t left sorting through outdated instructions.

Not Coordinating Estate Documents

An estate plan is only as strong as its parts and how well they align, Okrent says. A will outlines how your assets should be distributed after death. Advance directives, such as a living will, healthcare proxy or power of attorney, guide decisions if you become incapacitated. Trusts can help manage assets, minimize taxes, assist in charitable planning, help in long-term care-Medicaid eligibility and avoid probate. But having these documents isn’t enough. Okrent explains, “It’s not just about naming an executor, healthcare proxy or power of attorney — it’s about making sure they’re coordinated in a way that reflects your wishes.”

When these roles or instructions conflict, it can lead to confusion, delays or even legal disputes. Okrent says if you ensure all documents work together seamlessly, when the time comes, your plan will be executed with no trouble.

Neglecting Beneficiary Designations

A strong estate plan doesn’t stop at the will; it also includes your beneficiary designations. As Okrent explains, “Even if your estate plan is carefully crafted, if your IRAs, 401(k)s, life insurance or bank accounts list different beneficiaries, those designations override what’s written in your will.” That’s because assets with named beneficiaries, such as retirement accounts and life insurance policies, bypass probate and go directly to the listed individuals. If those names aren’t updated or aligned with your broader plan, it can lead to confusion, disputes or unintended outcomes.

Okrent recommends creating a comprehensive list of your assets and reviewing all beneficiary designations to make sure they match your estate plan. This simple step can prevent costly mistakes and ensure your wishes are honored across every account.

Overlooking Taxes and Long-Term Care 

The focus of an estate plan is to organize your affairs in a way that you or your loved ones are paying the least amount of fees or taxes, including state and federal income and estate taxes. Okrent notes that many people don’t consider the taxes tied to assets like 401(k)s, IRAs and other retirement accounts. “Even a well-crafted estate plan can fall short if it doesn’t prepare for the taxes that are coming,” he says.

Beyond taxes, long-term care is another major expense that’s often overlooked. Medical costs can quickly drain savings if there’s no plan in place. Okrent recommends including clear instructions on paying for future care, whether through Medicaid, Medicare, private insurance or personal funds. “You want to prepare the assets to ensure your independence and dignity and then leave them in a way that causes the least amount of financial burden, including the consideration of the beneficiaries’ situation, for example, disability, divorce, pending or possible lawsuits and tax burdens,” he explains. That means asking your attorney about potential tax liabilities, planning ahead for medical expenses and determining how an inheritance or gift will impact your beneficiaries. 

Missing Opportunities With Charitable Giving

As people get caught up in the important details of making sure their assets are in order, they may forget charitable giving in their estate plans. Okrent says, “There are benefits when you include an organization that’s important to you in your estate plan. Not only are you supporting something you’re passionate about, but from a tax point of view, there are charitable deductions available.”

For example, a direct distribution from an IRA to a qualified charity can be excluded from taxable income, offering both philanthropic and financial advantages. Including a charity like Stony Brook University in your estate plan could help convert a taxable estate into a nontaxable one and end up leaving more to your family than if you had not included them. Charitable giving isn’t just about generosity; it’s a strategic way to leave a legacy, reduce tax burdens and support causes that reflect your values. Okrent recommends discussing charitable options with your attorney to ensure your plan maximizes both impact and efficiency.

If you’re interested in including Stony Brook in your estate plan, contact one of our gift planners for the information you need to create a lasting legacy at the university.

To avoid mistakes, it’s important to play an active role in your estate planning, Okrent says. “By communicating with your planning team and making sure to update your plan as things change, you can help to ensure that you are protected during your life and then those important to you are taken care of when you’re gone.”

Read more about things to consider when creating an estate plan. 

If you’re beginning your estate planning journey, request our complimentary planning guide to help you take inventory of your assets and clarify your priorities.

The Law Offices of David R. Okrent specializes in elder law, estate planning and administration and special needs. Its lawyers focus on navigating the complexities of laws and rules to ease frustration and confusion, which allows their clients to focus on what is important: protecting their independence and dignity as well as their loved ones’ future.

Okrent supports the Long Island State Veterans Home, which is part of Stony Brook Medicine.

-Christine McGrath