Have you ever thought about what will happen to your home, savings, or business when you’re no longer here? Many people delay estate planning because it feels overwhelming; however, failing to plan can lead to court battles, additional expenses, and family stress.
At Price Law Firm, APC, we’ve spent over 23 years helping Redlands families create solid estate plans that reflect their wishes. Led by Attorney Sam Price, a State Bar-certified specialist in Estate Planning, Trust, and Probate Law, our firm has seen how small mistakes can cause big problems. In this article, we highlight the most common estate planning errors and share practical tips to help you protect your legacy.
The High Cost of Estate Planning Errors
A flawed or missing plan can shove your loved ones into probate court, shrink inheritances with tax bills, and spark arguments that last for years. Probate fees alone often range from four to eight percent of a home’s gross value, and that figure doesn’t include attorney costs or lost time. Beyond the financial implications, these missteps can delay transfers for months, sometimes even years, leaving your family without access to cash when they need it most.
By avoiding the mistakes outlined below, you help protect both your assets and your family’s peace of mind.
Common Estate Planning Mistakes and How to Prevent Them
Each heading that follows highlights a widespread blunder we encounter at Price Law Firm, APC. If any of these sound familiar, now is the perfect moment to act.
1. Failing to Create an Estate Plan
Many Californians rely on state intestacy rules, assuming assets will “just go to family.” Under that system, a judge controls distribution, and results rarely match personal wishes. The solution is simple: meet with an estate planning attorney to craft a will, a living trust, powers of attorney, and health directives.
2. Neglecting to Update Your Estate Plan
Marriage, divorce, a new child, or a major purchase can all shift your goals. An outdated plan might give an ex-spouse control of your estate or skip a newborn entirely. Review documents every three to five years, or sooner after big life events, to keep instructions up to date.
3. Overlooking Beneficiary Designations
Retirement accounts, life insurance, and payable-on-death bank accounts transfer based on the beneficiary form, not the will or trust. Out-of-date forms can send money to the wrong person. Check these designations yearly and after any family change.
4. Choosing the Wrong Executor or Trustee
The person in charge of your estate should be organized, fair, and comfortable handling money. Picking someone who lacks those traits may lead to missed deadlines, legal challenges, or arguments among heirs. Discuss the role openly and select a backup in case your first choice cannot serve.
5. Failing to Fund Your Trust Properly
Creating a living trust and leaving assets outside of it is like buying a safe but never locking valuables inside. Real estate, brokerage accounts, and other property must be retitled in the trust’s name; otherwise, probate may still occur. Work with your lawyer and financial institutions to move assets promptly.
6. Not Planning for Incapacity
Estate planning is not only about death. Illness or injury can leave you unable to manage finances or make health decisions. Without a durable power of attorney and an advance healthcare directive, loved ones may face a costly conservatorship process. Appoint trusted agents now, while you’re healthy.
7. Ignoring Digital Assets
Online bank statements, crypto wallets, photo libraries, and social media profiles often hold both financial and sentimental value. Without clear authorization, providers may bar family members from accessing those accounts. Keep a secure inventory of logins, appoint a digital agent, and include specific instructions in your plan.
8. Not Considering Tax Implications
While California lacks a state estate tax, federal estate tax limits can change, and large estates may still be subject to taxation. Poor planning can also trigger capital gains issues for heirs. Strategies such as lifetime gifting, charitable bequests, or specialized trusts can reduce exposure. Coordinate with both an estate-planning attorney and a tax professional for the best outcome.
9. Not Communicating Your Plan
A well-written plan may still cause tension if family members are unsure where documents are stored or why certain choices were made. Share the location of originals, explain your decisions, and give fiduciaries copies of key paperwork. Open conversation lowers the risk of later conflict.
10. DIY Estate Planning
Internet templates may appear inexpensive, but they often overlook California-specific rules, proper signing formalities, or critical funding steps. Fixing mistakes after death is nearly impossible and usually costs far more than professional guidance would have. An experienced attorney can draft documents that fit your goals and comply with state law.
Safeguard Your Family’s Future – Contact Price Law Firm, APC Today
Our team is dedicated to helping California families sidestep these costly mistakes and keep control of their legacies. Whether you need a first-time plan or a review of existing documents, we’re ready to listen and guide you through each step. Contact us at 909-328-7000 or visit our Contact Us page to schedule a complimentary consultation. A short conversation today can spare your loved ones years of stress tomorrow.
