Welcome to the February Edition of Top of Mind!
We all want to avoid a “family feud.” One way to do it? Get your estate plan in order.
From deciding who gets what to clarifying who’s in charge, a well-structured estate plan eliminates confusion and conflict.
In true Family Feud style, we asked Kurt for the Top 5 Estate Planning Mistakes he’s seen over the years.
Our goal: to help ensure your biggest family feud is over who gets the remote.
So, without further ado…
SURVEY SAYS:
1. Not Having a Will, Power of Attorney, or Living Will
The most obvious mistake? Not having a plan at all.
- No will? The state decides who gets your assets (and the state is NOT known for efficiency!).
- No power of attorney (POA)? No one can legally manage your finances if something happens to you.
- No living will? Your loved ones may be stuck making tough medical decisions without knowing what you’d have wanted.
Estate planning isn’t just about money—it’s about making things easier for the people you care about.
2. Letting Your Documents Go Stale
Estate planning is not a “set it and forget it” strategy. If your will is more than a few years old, it’s worth reviewing.
- Had kids since your last update? (They’d probably appreciate being included!)
- Divorce or remarriage in the family? (We’ve seen some awkward surprises.)
- New assets? (That lake house doesn’t add itself to the estate plan!)
Laws change, family situations change—your plan should, too.
3. Overlooking How Your Accounts Are Titled
This one catches people off guard: Your will doesn’t control everything.
- Account designations like “Joint” and “Transfer on Death (TOD)” designations override your will.
- If your will says, “everything goes to my kids equally” but you have a joint account with just one of them, guess what? That one child gets everything in that account.
We see this all the time when new clients come to us! A simple review of how your accounts are titled can save your family from some very tense Thanksgiving dinners!
4. Failing to Coordinate Beneficiary Designations
Think your will controls your 401(k), IRA, or life insurance? Think again! Just like account titling, beneficiary designations override your will.
- Ex-spouses still end up inheriting 401(k)s (Yes, really).
- One child gets all the life insurance because that’s who was named 20 years ago.
- The “even split” you planned? Not if you forgot to update that one account.
Review your beneficiaries regularly. “I’ll get around to it eventually” is not a legally binding strategy!
5. Not Communicating With Key People
Even if you’ve done everything right—set up a will, POA, and beneficiary designations—your job isn’t done until you talk to the people who will carry it out.
- Does your executor know they’re your executor? (Or are they going to find out the hard way?)
- Can your family actually find your estate documents? (Or will they be sifting through old files for clues?)
- Do your key people understand your wishes? (Or will they have to guess?)
A well-thought-out plan isn’t complete if no one knows how to execute it. Don’t leave behind a mystery novel—leave clear instructions.
The Bottom Line
One of the last memories your loved ones will have is how smoothly (or painfully) your estate was handled.
Avoid these common mistakes, review your plan regularly, and make sure your family is prepared. A little planning today saves a lot of stress (and attorney fees) tomorrow.
We’ve helped many families hold “family meetings,” bringing together multiple generations to get everyone on the same page. If we can do that for you, let us know!
In the meantime, check out Baird’s estate planning checklists on our website.
Thanks for reading this month’s Top of Mind! If you have any questions, we’re just a phone call or email away.
Warm regards,
Kurt, Cassidy, Ken, Teresa, Brian, and Jacque