Avoid these 10 common estate mistakes.

Not having an estate strategy at all

The biggest mistake is simply not having one. Only about a third of Americans have a will, the most basic document there is. Some never got around to it. Others assume estate planning is only for the wealthy.

Without a plan, your assets may not go where you intended, and your family can end up in conflict at the worst possible moment. Avoiding that starts with a conversation. Many of our clients work with an estate team that includes an attorney and a CPA, and a financial professional who understands your full picture is a natural addition to it. It is the heart of estate planning.

Missing the supporting documents

A will is not the whole plan. Two documents in particular get overlooked: a financial power of attorney and an advance health care directive.

A will covers your wishes after you pass, names your executor, and addresses guardianship for minors or anyone else who needs it. A financial power of attorney lets someone you trust make financial decisions if you become unable to. An advance health care directive lets someone you name make medical decisions on your behalf, and spells out your wishes for certain situations. Putting those wishes in writing is a genuine act of love, because it lifts an enormous weight off the people you leave to decide.

Not considering a trust

Before choosing between a will and a trust, it helps to understand the difference. A will is a basic instruction manual for how your assets are distributed, including who cares for minor children. A trust is a fiduciary arrangement where a trustee holds assets for your beneficiaries, and it typically bypasses probate, so assets transfer faster and more privately than through a will alone.

A trust may help if you have multiple heirs, are passing assets to grandchildren, want to attach conditions to an inheritance, want part of your wealth to go to charity, or simply have a large estate with moving parts. Trusts involve complex tax rules, so they are worth setting up with professionals who know the terrain.

Ignoring the estate tax exemption while it lasts

The federal estate and gift tax exemption has sat at historic highs in recent years, but it is not permanent. The amount you can pass on free of federal estate tax is set by law, and law changes. When the exemption is high, there is often a window to move wealth out of a taxable estate that may narrow later.

Two strategies come up often. A spousal lifetime access trust, or SLAT, is an irrevocable trust you create for your spouse, letting you use your lifetime exemption while your spouse retains access to the assets during their lifetime. A dynasty trust can be structured to last for as long as you have living descendants, using your gift and generation-skipping exemptions. Both have real tradeoffs, and both depend on current limits, which is exactly the kind of timing that belongs in coordinated high net worth tax planning. Confirm the current exemption and rules with a professional before acting.

Not accounting for non-financial assets

The things that matter most are not always the things with a dollar value. Sentimental artifacts and family heirlooms rarely appear in formal documents, so whoever settles your estate may not know a piece was meant to stay in the family rather than be sold or donated. A letter of instruction is a simple way to capture those wishes.