Estate planning is not something most people want to think about. It brings up hard topics like sickness, aging, and death. Because of this, many people put it off for years, or they rush through it without thinking things through. Both of these choices can lead to real problems for the people left behind.
The good news is that most estate planning problems are easy to spot once you know what to look for. Below are the mistakes we see most often, along with what you can do instead.
Mistake 1: Not Having an Estate Plan at All
The most common mistake in estate planning is simple. Many people never make a plan in the first place. They mean to get around to it, but life gets busy and the task keeps getting pushed to next year.
Without a plan, your loved ones are left guessing. State law decides who gets your money and property, not you. This process is called intestate succession, and it does not always match what you would have wanted. A spouse, a partner you never married, or a close friend could be left out completely.
A full estate plan usually includes a few key documents:
- A will or trust that says who gets your property
- A power of attorney that lets someone handle your money if you cannot
- A health care power of attorney that lets someone make medical choices for you
- A living will that spells out your wishes for end of life care
Having these documents in place gives your family clear answers during a hard time. Without them, your family may face months of court dates and legal costs just to sort out what should have been simple.
Mistake 2: Using DIY or Online Will Forms
Online will kits look like an easy fix. They are cheap and fast, and they promise to cover everything. The problem is that these forms are built for a general audience. They do not know your family, your property, or your state’s rules.
Idaho does allow a person to write their own will by hand, known as a holographic will. But writing your own legal document without guidance is risky. A single missing signature, an unclear sentence, or a form that does not follow Idaho law can make the whole document invalid. Your family may not find out there is a problem until after you are gone, when it is too late to fix.
Online forms also cannot ask you the follow-up questions a person would ask. They will not catch that you own property in two states, that you have a blended family, or that one of your children has special needs. These details matter, and missing them can cost your estate thousands of dollars in legal fees down the road.
Mistake 3: Forgetting to Plan for Personal Belongings
People often focus on the big items in an estate, like the house, the car, and the bank accounts. They forget about the smaller things, like jewelry, tools, photos, and family heirlooms. These items do not carry much money value, but they often carry the most emotional weight, and they are a common source of family fights.
One way to solve this is with a personal property list. This is a simple document that goes along with your will. On it, you write down specific items and who you want to have them. Because it works together with your will, it holds up as part of your estate plan.
A few tips for this list:
- Talk to your family first. The person you plan to leave an item to may not actually want it.
- Be specific. Instead of jewelry, list each piece and who gets it.
- Update the list as things change, since it is often easier to update than rewriting your full will.
Skipping this step does not save you time. It just moves the work, and the stress, onto your family.
Mistake 4: Choosing the Wrong Person to Handle Your Estate
Many people pick the oldest child, or all of their children together, to handle their estate without thinking it through. This can create problems if that person is not good with money, lives far away, or does not get along with siblings.
The person or people you choose for this job are called fiduciaries. This is a legal term for someone who is trusted to manage another person’s money, property, or care.
The Different Types of Fiduciaries
There are a few roles you may need to fill:
- Personal representative (also called an executor): handles the will and the probate process
- Trustee: manages a trust and follows its instructions
- Guardian: cares for minor children or an incapacitated adult
- Conservator: manages money and property for a minor or an incapacitated adult
- Agent (attorney in fact): acts under a power of attorney
You do not have to choose a family member for these roles. What matters is picking someone who is organized, trustworthy, and willing to do the work. If your children do not get along, naming all of them together can lead to arguments and legal fees that come out of the estate. It often works better to name one person, with a backup listed in case that person cannot serve. Talk to the people you choose before you name them, so they know what to expect and agree to take it on.
Mistake 5: Leaving Beneficiary Forms Blank or Outdated
A will is not the only document that decides who gets your property. Many accounts, such as life insurance policies, retirement accounts, and bank accounts with a payable on death or transfer on death label, are controlled by their own beneficiary forms. These forms work through a contract with the bank or insurance company, and they override anything written in your will.
If you never filled out a beneficiary form, or you left it blank, that asset usually becomes part of your general estate. It then gets sorted out through probate or the state’s intestacy laws, which can take longer and cost more.
To avoid this, go through every account you own and check who is listed as beneficiary. Common accounts to review include:
- Life insurance policies
- 401k and other retirement accounts
- Individual retirement accounts (IRAs)
- Bank accounts with a payable on death (POD) or transfer on death (TOD) label
Mistake 6: Naming a Beneficiary With Special Needs Without a Plan
If you plan to leave money or property to someone with a disability, a direct gift can cause more harm than good. Many people with disabilities receive government benefits that have strict limits on how much money or property they can own. A sudden inheritance can push them over that limit and cause their benefits to stop.
Instead of leaving assets directly to that person, many families use a special needs trust. This type of trust holds money for that person’s benefit without counting against the limits set by government programs. It can pay for things like therapy, equipment, or activities that improve quality of life, all without putting their other benefits at risk.
This is one of the easiest mistakes to avoid, but only if you plan for it ahead of time. Talk with the people you plan to name as beneficiaries about their current situation before you finish your estate plan.
Mistake 7: Assuming You Must Leave Everything Equally
Many parents feel they need to split their estate the exact same way between all of their children. This is not a legal requirement. Inheritance is a gift, not something anyone is owed by law.
If one child has taken care of you for years and another has been distant, you are allowed to reflect that in your plan. Some families choose to leave money to causes they care about, to close friends, or to organizations instead of splitting everything among children. What matters most is that your wishes are written down clearly, so there is no confusion after you are gone.
If you do choose to leave an unequal amount to your children, it can help to explain your reasoning somewhere in your plan, or to have an honest talk with your family beforehand. This does not remove all disagreement, but it can lower the chance of a legal challenge later.
Mistake 8: Not Writing Down Your Burial Wishes
Talking about burial and funeral wishes is not comfortable, but skipping it can leave your family arguing over choices during an already hard time. Some families disagree over cremation versus burial, the type of service, or even where to hold it.
A funeral letter is a simple way to solve this. It is a written document that lays out your wishes, such as:
- Burial or cremation
- The type of service you want
- Music, readings, or specific requests
- Where you want to be laid to rest
This letter can be kept with your other estate planning papers and shared with the person handling your affairs. In Idaho, this type of document often needs to be signed in front of a notary, but it does not need to be redone by a lawyer every time you want to make a change. You can update it yourself and sign it again in front of a notary whenever your wishes change.
Mistake 9: Not Updating Your Plan as Life Changes
An estate plan is not something you write once and forget about. Life changes, and your plan should change with it. A plan that made sense ten years ago may not match your life today.
Common events that should trigger a review of your plan include:
- Marriage or divorce
- The birth of a child or grandchild
- The death of someone named in your plan
- A move to a different state
- A big change in your finances
- A family member becoming unable to care for themselves
One of the most common problems we see is an outdated beneficiary form. Someone lists a former spouse on a life insurance policy, then gets divorced and forgets to change it. Years later, that former spouse still receives the payout, even if the will says something different. Updating a will can often be done through a smaller document called a codicil, while a trust can usually be changed through an amendment. In some cases, it makes more sense to write a new document from scratch. Reviewing your plan every few years, or after any big life event, is the easiest way to avoid this kind of mistake.
Frequently Asked Questions
How often should I update my estate plan?
A good rule is to review it every three to five years, or right after a major life change such as marriage, divorce, a new child, or a move to a new state. Even small changes, like a new bank account, are worth adding to your list of things to check.
Do I really need a lawyer, or can I write my own will?
Idaho law does allow you to write your own will by hand. However, a self-written will can easily miss legal requirements or leave out details that matter for your specific family situation. Working with someone familiar with Idaho estate planning law can help make sure your documents hold up the way you intend.
What happens if I die without a will in Idaho?
If you die without a written will, Idaho’s intestacy laws decide who receives your property. These laws follow a set order, usually starting with a spouse and children. This may not match what you actually wanted, and it can leave out people like unmarried partners or close friends entirely.
Can I leave more money to one child than another?
Yes. Inheritance is not something the law requires you to split equally. You are free to leave different amounts to different people, based on your own relationships and wishes, as long as your plan is written clearly.
Get Help With Your Estate Plan
Estate planning mistakes are common, but they are also avoidable. Taking the time now to build a clear plan and to keep it updated can save your family from added stress, cost, and confusion later on. Whether you are starting from scratch or need to review a plan you already have, Foley Freeman, PLLC, can help you put the right documents in place for your family. Call 208-888-9111 to talk with our team about your estate planning needs.