6 Estate Planning Mistakes You May Not Realize You're Making

You have a will. You've named your beneficiaries. You've taken care of your estate planning. Or have you?

One thing I've noticed over the years is that many successful professionals  have done a good job building their wealth, but haven't spent nearly as much time thinking about what happens to that wealth when they're gone.

And I understand why.

Between careers, raising families, and everything else life throws at us, estate planning isn't exactly something most people look forward to.

You meet with an attorney, sign some documents, put them somewhere safe, and check that task off your list.

But here's something worth thinking about.

When was the last time you actually reviewed your estate plan?

Maybe your children were young when you created it. Maybe you've changed jobs, opened new retirement accounts, lost a loved one, or welcomed grandchildren into the family.

Life changes. And sometimes our estate plans don't keep up.

Here are six common estate planning misconceptions that I think are worth revisiting, especially as you approach retirement.

1. "I Have a Will, So Everything Is Taken Care Of."

Having a will is an important first step. But it's only one piece of the puzzle.

A will generally explains how you want certain assets distributed after you pass away.

But what happens if you're still alive and unable to make decisions for yourself?

Imagine having a medical emergency that leaves you unable to communicate or manage your finances for several months.

Who pays your bills? Who handles your investments? Who makes important medical decisions?

That's where documents like a durable financial power of attorney and healthcare directives become important.

My takeaway: Estate planning isn't just about what happens when you die. It's also about protecting yourself and your family while you're alive.

2. "Having a Will Means My Family Can Avoid Probate."

This is one I think surprises a lot of people.

Many assume that having a will means their family can simply distribute everything according to their wishes without involving the courts.

Unfortunately, that's not necessarily how it works.

Probate is the legal process used to administer an estate, including validating a will when required, paying debts, and distributing assets.

A will doesn't automatically eliminate that process.

Depending on your situation, certain assets may pass directly to beneficiaries without going through probate. Trusts and the way accounts or property are titled can also play an important role.

The important thing is understanding how your assets will actually transfer.

My takeaway: Don't assume having a will makes everything simple for your family. Make sure you understand what happens after you're gone.

3. "My Will Says Who Gets Everything, So My Beneficiaries Are Covered."

This might be one of the most important things to review as you get closer to retirement.

Let's say you created your will 15 years ago. Since then, you've changed jobs several times, rolled over retirement accounts, purchased life insurance, and experienced a few major family changes.

Your will may be perfectly up to date.

But what about the beneficiaries listed on your 401(k), IRA, or life insurance policies?

Here's what many people don't realize.

Beneficiary designations on retirement accounts and life insurance policies generally control who receives those assets, even when your will says something different.

That means an outdated beneficiary designation could result in money going somewhere you no longer intended. There can be exceptions and special legal rules, particularly involving spouses and divorce.

I've always believed reviewing beneficiaries should be a regular part of retirement planning.

It doesn't take long to review them, but overlooking them can create significant problems for the people you care about.

My takeaway: Review the beneficiaries on your retirement accounts, insurance policies, and other applicable accounts. Make sure they still reflect your wishes.

4. "If Something Happens to Me, My Spouse or Children Can Handle Everything."

This sounds reasonable.

After all, your spouse knows where the accounts are. Your children know your wishes. Everyone gets along.

But there's a big difference between knowing what needs to be done and having the legal authority to do it.

If you become unable to manage your financial affairs, your family may not automatically have the authority to access certain accounts, make financial decisions, or handle important transactions.

A properly prepared financial power of attorney can give someone you trust the authority to act on your behalf, within the limits established by the document.

Without one, your family could face unnecessary delays, expenses, or even court involvement.

And those are the last things anyone needs during an already stressful situation.

My takeaway: Don't leave your family trying to figure out what they're legally allowed to do during an emergency.

5. "My Family Already Knows What I Want."

I hear variations of this quite often.

"My wife knows what I want."

"My kids know how I feel about these things."

"We've already talked about it."

And that's wonderful. Having those conversations is important.

But consider what happens when emotions are running high.

Family members may remember conversations differently. They may disagree about medical decisions or feel uncertain about what you would have wanted.

Healthcare directives, including a living will and healthcare power of attorney, can help communicate your wishes and identify who should make decisions when you cannot.

And while you're at it, consider having a family conversation about your broader estate plan.

You don't necessarily need to share every financial detail. But helping your loved ones understand your intentions can make a difficult time a little easier.

My takeaway: One of the most thoughtful things you can do for your family is make sure they don't have to guess about your wishes.

6. "Estate Taxes Are Going to Take a Big Chunk of Everything I Leave Behind."

Estate taxes get a lot of attention, but the reality may be different from what you expect.

For 2026, the federal estate tax exclusion is $15 million per individual.

That means many families won't owe federal estate taxes under current law.

However, certain states have their own estate or inheritance taxes, and the rules can vary depending on where you live and where your assets are located.

There's also something else worth remembering.

Estate planning isn't just about minimizing estate taxes.

It's about making sure your assets go where you want them to go, protecting the people you care about, and making the transition as straightforward as possible.

For many families, issues involving inherited retirement accounts, income taxes, beneficiary designations, and family circumstances may deserve more attention than federal estate taxes.

My takeaway: Don't let concerns about estate taxes distract you from the other important parts of your estate plan.

Estate Planning Isn't Something You Do Once and Forget

Here's what I hope you take away from all of this.

You don't need to become an estate planning expert.

But you do need to make sure the plan you put in place years ago still makes sense for the life you have today.

Think about how much has changed in the last five or ten years.

Your family may look different. Your financial situation has probably changed. Your retirement accounts may have grown considerably. And your priorities may not be the same as they once were.

That's why I encourage people to review their estate plans periodically, particularly after major life changes.

A good place to start is by asking yourself a few simple questions:

• When was the last time I reviewed my will and estate documents?
• Are the beneficiaries on my accounts still correct?
• Does someone I trust have the legal authority to make decisions if I can't?
• Does my family know where to find important documents?
• Does my estate plan still reflect what matters most to me?

You may discover everything is in good shape.

Or you may find a few things that deserve attention.

Either way, you'll have a better understanding of where you stand.

Protecting Your Wealth Is About More Than Investments

When we talk about retirement planning, it's easy to focus on how much you've saved, how to generate retirement income, or how to manage taxes.

Those are important conversations.

But there's another side of retirement planning that deserves just as much attention.

What happens to everything you've worked so hard to build, and how can you make things easier for the people you love?

At Designing Wealth, we help busy professionals approaching retirement look at the bigger picture. That includes retirement income planning, tax-smart strategies, beneficiary reviews, and coordinating financial decisions with their broader estate and legacy planning goals.

We don't replace your local estate planning attorney. Instead, we help you understand how your retirement accounts, investments, insurance, and financial goals fit together so you can have more productive conversations with the professionals involved in your plan.

After all, building wealth is important. But making sure it supports the people and priorities that matter most to you is just as important.

If you're approaching retirement and wondering whether you've overlooked something, we'd welcome the opportunity to have a Retirement Readiness Conversation.

Sometimes the most valuable part of planning is simply knowing you've asked the right questions.

If you would like to have a conversation, schedule your virtual appointment here. We work with clients nationwide and meet locally with clients in the Greensboro Triad, Charlotte and Raleigh area.

Sources:

1. American Bar Association, 2026 [URL: https://www.americanbar.org/groups/real_property_trust_estate/resources/estate-planning/intro-wills/]
2. American Bar Association, 2026 [URL: https://www.americanbar.org/groups/real_property_trust_estate/resources/estate-planning/probate-process/]
3. Investopedia, 2026 [URL: https://www.investopedia.com/why-beneficiary-designations-usually-override-wills-for-retirement-and-insurance-accounts-12023175]
4. Consumer Financial Protection Bureau, 2026 [URL: https://www.consumerfinance.gov/ask-cfpb/what-is-a-power-of-attorney-poa-en-1149/]
5. Mayo Clinic, 2025 [URL: https://www.mayoclinic.org/healthy-lifestyle/consumer-health/in-depth/living-wills/art-20046303]
6. Internal Revenue Service, 2026 [URL: https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax]

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