--- title: "Estate Planning Mistakes That Cost Families Thousands" description: "The most expensive estate planning mistakes are also the most common, and the most avoidable. Here are the big ones and how to fix each." lang: en json-ld: | [ { "@context": "https://schema.org", "@graph": [ { "@type": "LegalService", "@id": "https://jacobslegacycounsel.com/#legalservice", "name": "Jacobs Legacy Counsel", "alternateName": [ "Legacy Counsel by Jacobs Counsel", "Jacobs Legacy" ], "url": "https://jacobslegacycounsel.com", "description": "Fixed-fee estate planning for high-net-worth families, founders, executives, and professional athletes. 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Here are the big ones and how to fix each.", "author": { "@type": "Person", "name": "Drew Jacobs, Esq." }, "publisher": { "@type": "Organization", "name": "Legacy Counsel by Jacobs Counsel LLC" }, "datePublished": "2026-06-28", "dateModified": "2026-06-28", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://jacobslegacycounsel.com/estate-planning-mistakes-that-cost-families-thousands" } }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "What is the most common estate planning mistake?", "acceptedAnswer": { "@type": "Answer", "text": "Having no plan at all, followed closely by outdated beneficiary designations and trusts that were never funded." } }, { "@type": "Question", "name": "How often should I update my estate plan?", "acceptedAnswer": { "@type": "Answer", "text": "After any major life event such as marriage, divorce, a new child, a new business, or a move, and otherwise every few years." } }, { "@type": "Question", "name": "Does a will avoid probate?", "acceptedAnswer": { "@type": "Answer", "text": "No. A will goes through probate. A funded revocable living trust is what keeps assets out of the public probate process." } }, { "@type": "Question", "name": "What does it mean to fund a trust?", "acceptedAnswer": { "@type": "Answer", "text": "Funding means transferring ownership of your assets, such as your home and accounts, into the trust. An unfunded trust does not control those assets, so they can still go through probate." } }, { "@type": "Question", "name": "Is online estate planning software good enough?", "acceptedAnswer": { "@type": "Answer", "text": "It can be risky. Documents that are not executed correctly for your state, or that do not fit your situation, may fail when they are needed." } } ] } ], { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://jacobslegacycounsel.com/" }, { "@type": "ListItem", "position": 2, "name": "Estate Planning Mistakes That Cost Families T…", "item": "https://jacobslegacycounsel.com/estate-planning-mistakes-that-cost-families-thousands" } ] } ] --- A Practice of [Jacobs Counsel LLC](https://jacobscounsellaw.com) Serving NY · NJ · OH — Vol. 2026 [Legacy Counsel ](/) Firm Resources Estate Planning Trusts [Probate & Admin](/probate-trust-administration)[Pricing](/pricing)[Book Call](https://cal.com/drewjacobs/estate-planning)[Start Intake](/get-started) Menu 1. [Home](/) 2. Estate Planning Mistakes That Cost Families T… 1. [Home](/) 2. [Blog](/blog) 3. Estate Planning Mistakes That Cost Families Thousands Estate Planning · Mistakes Hub # Estate Planning Mistakes That Cost Families Thousands Quick answer The costliest estate planning mistakes are rarely exotic. They are ordinary oversights: no plan at all, an outdated beneficiary form, a trust that was never funded, or no plan for incapacity. Each one can cost a family thousands in court fees, taxes, and delay, and each is avoidable. Below are the most common and expensive mistakes, and how to fix them. Drew Jacobs, Esq. Legacy Counsel by Jacobs Counsel LLC Published June 28, 2026 Last updated June 28, 2026 10 min read ## 1\. Having no plan at all If you die without a plan, your state decides who gets your assets and who raises your children, using default rules that may not match what you wanted. Everything runs through probate, the public court process, which costs money and takes months or longer. The fix Put a basic plan in place. Even a will and powers of attorney put you back in control. Not sure where to start? [Get started with us](/get-started). ## 2\. Relying only on a will A will does not avoid probate. It is your instructions to a probate court, which means a public process, delay, and cost before your family receives anything. For many families, a will alone is not enough. The fix Consider a revocable living trust to keep assets private, avoid probate, and control how and when your heirs receive money. ## 3\. Outdated beneficiary designations Retirement accounts, life insurance, and many bank accounts pass by beneficiary designation, not by your will. These designations override your will. An old form naming an ex-spouse, a deceased relative, or no one at all is one of the most common and expensive mistakes there is. The fix Review every beneficiary designation and make sure each one matches your current wishes and the rest of your plan. ## 4\. Never updating the plan Life changes, and a plan that fits you at 30 may be wrong at 40. Marriage, divorce, a new child, a new business, a move to another state, or a big change in assets can all break an old plan. The fix Review your plan after any major life event, and otherwise every few years. A short review is far cheaper than a court fight. ### Worried one of these applies to you? A short intake tells us where the gaps are, and what to fix first. [Start your estate plan](/get-started)[Email us →](mailto:drew@jacobscounsellaw.com) ## 5\. No plan for incapacity Estate planning is not only about death. If you are alive but unable to make decisions, your family may have to go to court for guardianship or conservatorship to manage your money and medical care. That process is slow, public, and expensive. The fix Put a financial power of attorney and a healthcare power of attorney and advance directive in place. These are low cost and high value. ## 6\. Do-it-yourself documents that do not hold up Generic online forms often fail because they are not signed, witnessed, or notarized the way your state requires, or because they do not fit your actual situation. A document that is invalid when it is needed can cost far more than it saved. The fix Have your documents prepared and executed correctly for your state. See [how much estate planning costs in 2026](/how-much-does-estate-planning-cost) before you assume professional help is out of reach. ## 7\. Creating a trust but never funding it This one is quietly one of the most damaging. A trust only controls the assets that are actually transferred into it. People pay to set up a trust, then never retitle their home, accounts, or business into it, so the trust is empty and the assets still go through probate. The fix Fund the trust. Make sure your home, accounts, and other assets are properly titled to it, and keep that current as you acquire new assets. ## 8\. Forgetting digital assets Crypto, monetized channels, domains, and valuable accounts are often left out entirely. Without planning, self-custody crypto can be lost forever and online income can disappear. The fix Inventory your digital assets and give your executor clear authority over them. See [what happens to your digital assets when you die](/what-happens-to-digital-assets-when-you-die). ## 9\. Leaving money to young heirs outright Leaving a large sum directly to a young or inexperienced heir, with no structure, can do real harm. Without a trust, an heir may receive everything at 18 with no guardrails. The fix Use a trust to control timing and conditions, so money is managed and released in a way that protects the people you love. ## 10\. No business succession plan If you own a business, leaving out succession is a major gap. Without a plan, your equity can pass through probate, your company can stall, and your co-founders or family can be left in conflict. The fix Build a business succession plan that lines up with your operating and buy-sell agreements, so ownership and control transfer the way you intend. ## 11\. Naming the wrong executor or trustee Choosing someone who is unwilling, unable, or in conflict with your heirs can turn administration into a dispute. Naming no one leaves the choice to a court. The fix Choose people who are trustworthy and capable, name backups, and make sure they know they were chosen. ## 12\. Assuming estate planning is only about taxes Many people skip planning because they assume they are not wealthy enough to owe estate tax. For 2026, the federal exemption is $15 million per person, so most families will not owe it. But the real costs of no plan are probate, delay, lost assets, family conflict, and the inability to make decisions in a crisis. The fix Plan for control and protection, not just taxes. Those are the costs that hit ordinary families hardest. ## Key takeaways - The most expensive mistakes are the most common: no plan, outdated forms, unfunded trusts, and no incapacity plan. - Beneficiary designations override your will, so keep them current. - A trust only works if you fund it. - Digital assets and business interests are routinely left out and routinely lost. - Estate tax is not the main risk for most families. Probate, delay, and lost control are. ### Most of these mistakes are simple to avoid. If you want to know which ones apply to you, start your intake or email us. [Start your estate plan](/get-started)[Email us →](mailto:drew@jacobscounsellaw.com) ## Frequently asked questions ### What is the most common estate planning mistake? Having no plan at all, followed closely by outdated beneficiary designations and trusts that were never funded. ### How often should I update my estate plan? ### Does a will avoid probate? ### What does it mean to fund a trust? ### Is online estate planning software good enough? On this page 1. [1\. Having no plan at all](#mistake-1) 2. [2\. Relying only on a will](#mistake-2) 3. [3\. Outdated beneficiary designations](#mistake-3) 4. [4\. Never updating the plan](#mistake-4) 5. [5\. No plan for incapacity](#mistake-5) 6. [6\. DIY documents that do not hold up](#mistake-6) 7. [7\. Creating a trust but never funding it](#mistake-7) 8. [8\. Forgetting digital assets](#mistake-8) 9. [9\. Leaving money to young heirs outright](#mistake-9) 10. [10\. No business succession plan](#mistake-10) 11. [11\. Naming the wrong executor or trustee](#mistake-11) 12. [12\. Assuming it is only about taxes](#mistake-12) 13. [Key takeaways](#key-takeaways) 14. [Frequently asked questions](#faq) This article is educational and not legal advice. Estate planning, right of publicity, and tax rules vary by state and change over time. Confirm how the law applies to your situation with a qualified attorney before acting. Estate Planning & Legacy Counsel Legacy Counsel by Jacobs Counsel. Fixed-fee estate planning, trusts, wills, and generational wealth strategy for high-net-worth families. 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All rights reserved. Attorney Advertising. Prior results do not guarantee a similar outcome. **Jurisdiction.** Drew Jacobs is licensed to practice law in New York, New Jersey, and Ohio . Estate planning is highly state-specific — laws governing wills, trusts, probate, estate and inheritance tax, and asset protection vary materially by jurisdiction. We represent clients whose residence, primary assets, or business interests are situated in NY, NJ, or OH. For matters involving other states, we coordinate with qualified local counsel. Nothing on this site constitutes legal advice or an offer to represent you in a jurisdiction in which we are not licensed.