What Are Common Estate Planning Mistakes? 7 Errors to Avoid

October 28, 2025
8 min read

Understanding Common Estate Planning Mistakes

What are common estate planning mistakes? The most frequent errors include failing to create or update an estate plan, not properly funding trusts, neglecting to name beneficiaries, choosing the wrong executor or trustee, and overlooking digital assets. These mistakes can lead to unnecessary probate costs, family disputes, and unintended distribution of your assets under California intestacy laws.

Estate planning is one of the most important steps you can take to protect your family and assets, yet many Californians make critical errors that undermine their intentions. Whether you're in Apple Valley, the High Desert, or anywhere in the Inland Empire, understanding these common pitfalls can help you create a comprehensive estate plan that truly serves your goals.

With over 20 years of experience in estate planning and trust administration, we've seen firsthand how these mistakes affect California families. The good news is that most estate planning errors are entirely preventable with proper guidance and attention to detail.

Mistake #1: Not Having an Estate Plan at All

The single most common estate planning mistake is simply not having a plan. According to recent surveys, approximately 67% of Americans don't have a will or trust in place. This percentage is similarly reflected across California, including the High Desert region.

When you die without an estate plan in California, your assets are distributed according to the state's intestacy laws outlined in California Probate Code Section 6400-6414. This means the state decides who inherits your property, which may not align with your wishes. Your estate will also go through probate court, a public, time-consuming, and expensive process that can take 12-18 months or longer.

Without proper planning, you also miss the opportunity to:

Even if you're young or don't consider yourself wealthy, everyone needs at least basic estate planning documents. A sudden accident or illness can strike at any age, and having a plan ensures your wishes are honored and your family is protected.

The California Probate Process Without a Plan

In California, estates valued over $184,500 (as of 2024) must go through formal probate. The costs are substantial—California Probate Code Section 10810 establishes statutory fees for attorneys and executors based on the estate's gross value, not its net value. For a $500,000 estate, the combined fees alone would be $26,000, not including additional court costs and expenses.

Mistake #2: Failing to Update Your Estate Plan

Creating an estate plan is an excellent first step, but failing to update it regularly is one of the most common estate planning mistakes. Life circumstances change, and your estate plan should reflect these changes.

Major life events that should trigger an estate plan review include:

Estate planning attorneys recommend reviewing your documents every three to five years, even if no major life changes have occurred. Laws change, asset values fluctuate, and people's circumstances evolve. An outdated estate plan can be almost as problematic as having no plan at all.

For example, if you created a trust 15 years ago and named your brother as trustee, but your relationship has since deteriorated, that outdated designation could cause serious problems for your beneficiaries. Similarly, if you've moved to California from another state, your existing documents may not fully comply with California law.

Mistake #3: Not Properly Funding Your Trust

Creating a revocable living trust is an excellent estate planning strategy popular among California residents, but one of the most common estate planning mistakes is failing to properly fund the trust. A trust is merely a shell until you transfer assets into it—a process called "funding the trust."

Many people work with an attorney to create a trust document but never complete the crucial step of retitling their assets in the trust's name. This means those assets will still need to go through probate, defeating one of the primary purposes of creating a trust in the first place.

Assets That Should Be Transferred to Your Trust

Common assets that should be funded into your trust include:

The process varies by asset type. Real estate requires preparing and recording new deeds. Financial accounts require working with your bank or financial institution to retitle the accounts. In California, many title companies and financial institutions are familiar with this process, but it requires diligence and follow-through.

Some assets, like retirement accounts and life insurance policies, should typically not be transferred to your trust but should instead name the trust as a beneficiary. This is a nuanced area where professional guidance is essential.

Mistake #4: Neglecting to Update Beneficiary Designations

Another critical error among common estate planning mistakes is overlooking beneficiary designations on retirement accounts, life insurance policies, payable-on-death bank accounts, and transfer-on-death investment accounts. These designations override what your will or trust says, which can lead to unintended consequences.

Consider this scenario: You create a comprehensive estate plan with a trust, intending to leave your assets equally to your three children. However, your 401(k) and life insurance policy—which comprise 60% of your estate's value—still list your ex-spouse as beneficiary from before your divorce. Despite your trust's provisions, those assets will go to your ex-spouse, not your children.

Beneficiary Designation Best Practices

To avoid this common estate planning mistake:

Keep a master list of all accounts with beneficiary designations and review it with your estate planning attorney. In California, community property considerations may also affect how you can designate beneficiaries on certain accounts acquired during marriage.

Mistake #5: Choosing the Wrong Executor or Trustee

Selecting the person who will administer your estate or trust is one of the most important decisions you'll make, yet choosing the wrong fiduciary is among the most common estate planning mistakes. The right choice can ensure smooth administration; the wrong choice can lead to family conflict, mismanagement, and costly legal disputes.

Many people automatically choose their oldest child or spouse without considering whether that person has the necessary skills, time, temperament, and willingness to serve. Being an executor or trustee involves significant responsibilities under California law.

Qualities to Look for in a Fiduciary

An effective executor or trustee should possess:

Don't assume your first choice will be able or willing to serve when the time comes. Always name at least one successor trustee or executor. Some families benefit from appointing co-trustees or naming a professional fiduciary, such as a trust company or experienced attorney.

California Probate Code Sections 15600-15612 outline trustees' duties, including the duty of loyalty, duty to avoid conflicts of interest, and duty to keep beneficiaries reasonably informed. Executors have similar obligations under Probate Code Sections 9600-9605. Violating these duties can result in personal liability, making it essential to choose someone who understands these responsibilities.

Mistake #6: Overlooking Digital Assets and Modern Considerations

One of the newer additions to common estate planning mistakes involves failing to account for digital assets. In our increasingly digital world, these assets can have both financial and sentimental value, yet many estate plans don't address them.

Digital Assets to Consider

Your digital estate may include:

California enacted the Revised Uniform Fiduciary Access to Digital Assets Act (California Probate Code Sections 870-884), which provides guidance on how fiduciaries can access and manage digital assets. However, this access is subject to the terms of service agreements and privacy policies of various platforms.

Create an inventory of your digital assets, including usernames, passwords (stored securely), and instructions for each account. Some accounts should be closed, others memorialized, and some transferred to beneficiaries. Make sure your estate planning documents explicitly grant your executor or trustee authority to access and manage these assets.

Mistake #7: DIY Estate Planning Without Professional Guidance

While online forms and software might seem like cost-effective solutions, relying solely on do-it-yourself estate planning is one of the most common estate planning mistakes that can cost your family far more in the long run.

California has specific requirements for valid wills (California Probate Code Sections 6110-6113), trusts, and powers of attorney. A minor error in execution—such as improper witnessing or notarization—can invalidate the entire document. Generic forms don't account for California's community property laws, property tax reassessment rules under Proposition 19, or the complexities of blended families.

When Professional Guidance Is Essential

You especially need professional estate planning help if you have:

An experienced estate planning attorney can identify issues you might not consider, ensure your documents comply with California law, coordinate your entire estate plan, and provide peace of mind that everything is properly executed.

Protecting Your Legacy: Work With Experienced California Estate Planning Professionals

Understanding what are common estate planning mistakes is the first step toward avoiding them. From failing to create a plan at all to neglecting updates, not funding trusts, overlooking beneficiary designations, choosing the wrong fiduciary, ignoring digital assets, and attempting DIY solutions—each of these errors can have serious consequences for your family and your legacy.

The residents of Apple Valley, the High Desert, and the Inland Empire deserve estate plans that truly protect their interests and honor their wishes. California's unique laws regarding community property, probate, and estate administration make working with a knowledgeable local attorney particularly important.

At Archangel Trust, we've spent over 20 years helping California families create comprehensive estate plans and navigate trust administration. We understand the specific challenges facing residents of the High Desert and Inland Empire, and we're committed to providing personalized guidance that addresses your unique circumstances.

Don't let common estate planning mistakes compromise your family's future. Contact Archangel Trust today to schedule a consultation and ensure your estate plan is complete, current, and customized to your needs. Whether you need to create your first estate plan, update outdated documents, or properly fund an existing trust, our experienced team is here to help you protect what matters most.