Estate Planning Is Not Just About Documents
Over the years, I’ve noticed that most estate planning problems are not caused by bad intentions.
They are usually caused by plans that were never completed, never updated, or never implemented properly.
Many of the probate and trust administration matters I handle could have been avoided with a few simple steps.
Mistake #1: Creating a Trust but Never Funding It
One of the most common issues I see is a trust that was signed but never funded.
A trust generally cannot control assets that were never transferred into it.
This frequently leads to probate or trust administration complications.
One of the most common problems I see is a homeowner refinancing a home and not realizing the property was removed from the trust during the refinance process.
That’s why I always check title, even when a client is certain the property is already in the trust.
For a more detailed discussion, see Why Funding Your Trust Is Just as Important as Signing It.
Mistake #2: Forgetting to Update Beneficiary Designations
Retirement accounts, life insurance policies, and other assets often pass according to beneficiary designations rather than trust provisions.
Outdated beneficiary forms can create unexpected results. I always encourage clients to review beneficiary designations because I have seen outdated forms create surprising results. More than once, a client has looked at an old designation and said: “But he’s dead.”
Understanding which assets pass by beneficiary designation and which assets require additional planning is an important part of estate planning. See What Assets Avoid Probate in California?
Mistake #3: Failing to Review an Estate Plan
Families change.
Marriage, divorce, births, deaths, inheritances, and significant changes in assets may all justify reviewing an estate plan.
I have had many clients tell me, when reviewing an older estate plan, that they have not spoken to a named trustee or agent in years. In some cases, they had simply forgotten the person was named in the documents.
This is especially true for blended families, where planning goals and beneficiary designations may require additional coordination. See Estate Planning for Blended Families.
Mistake #4: Not Planning for Incapacity
Many people focus only on what happens after death.
However, incapacity planning is often just as important.
I’ve had to fix numerous budget estate plans that failed to include powers of attorney and health care directives. In many of those situations, the family would have faced the possibility of a costly and time-consuming conservatorship proceeding if incapacity occurred before the estate plan was updated.
Mistake #5: Not Naming Guardians
Parents of minor children frequently underestimate the importance of guardian nominations.
Failing to name a guardian can leave difficult decisions to the court and create uncertainty for loved ones.
Parents often spend significant time deciding who they would want to care for their children.
Equally important is considering whether there are individuals they would not want serving in that role.
Over the years, I have had clients tell me things about certain relatives that a court would never otherwise know. Sometimes those concerns become an important part of the planning process.
Thoughtful guardian nominations can provide important guidance and help reduce the likelihood of disputes during an already difficult time.
For more information, see What Happens If Parents Die Without Naming a Guardian?
Mistake #6: Assuming Probate Will Not Be Required
Many homeowners are surprised to learn how probate works and how probate fees are calculated in California.
In Santa Clara County, even modest estates by local standards can involve significant probate costs because of real estate values.
I’ve helped families through probate whose loved ones were certain all accounts had beneficiary designations or all assets were properly titled. They were wrong, and the discovery came after it was too late to fix the problem.
For more information, see How Probate Works in California and How Much Does Probate Cost in California?
Planning Is an Ongoing Process
Estate planning is not something most people do once and forget.
Periodic reviews help ensure that documents continue to reflect current wishes and circumstances.
If you’re unsure whether your current plan still meets your needs, a good starting point is asking a simple question: Do You Even Need a Trust?
Related Articles
• Why Funding Your Trust Is Just as Important as Signing It
• What Assets Avoid Probate in California?
• Estate Planning for Blended Families
• How Probate Works in California
• How Much Does Probate Cost in California?
• What Happens If Parents Die Without Naming a Guardian?
Adam T. Evan is a California estate planning attorney serving San Jose, Santa Clara County, and Silicon Valley. His practice focuses on estate planning, probate, trust administration, and guardianships. He helps families avoid common planning mistakes and create estate plans tailored to their goals and circumstances.
Law Office of Adam T. Evan 