Estate planning is one of the most important steps you can take to protect your family, yet millions of Americans either skip it entirely or make costly mistakes in the process. As Sacramento estate planning attorneys, we see these errors regularly — and they can result in unnecessary probate proceedings, family disputes, and significant financial losses.
Here are seven common estate planning mistakes and how to avoid them.
1. Not Having an Estate Plan at All
The most common mistake is simply not having one. According to recent surveys, roughly 67% of Americans do not have a will or trust. Without an estate plan, California's intestacy laws (Probate Code Sections 6400-6414) determine who inherits your assets — and the result may not match your wishes at all.
For example, if you are unmarried with children, your assets go entirely to your children, even if you wanted to provide for a long-term partner. If you have no children, assets may pass to parents, siblings, or even distant relatives you have never met.
2. Creating a Trust but Never Funding It
This is perhaps the most frustrating mistake we encounter. Clients pay for a beautifully drafted revocable living trust, then fail to transfer their assets into it. An unfunded trust is essentially an empty container — it cannot avoid probate for assets it does not hold.
Trust funding means retitling your real property, bank accounts, investment accounts, and other assets in the name of your trust. We guide our clients through this process step by step, because creating the documents is only half the job.
3. Failing to Update Your Plan After Life Changes
Estate plans are not "set it and forget it" documents. Marriage, divorce, birth of children or grandchildren, death of a beneficiary, significant changes in net worth, and relocation to a different state all require updates. We recommend reviewing your plan every three to five years, or whenever a major life event occurs.
A particularly common issue: leaving an ex-spouse as beneficiary on life insurance policies or retirement accounts. Under California law, a divorce automatically revokes certain beneficiary designations in a trust or will, but it does NOT automatically change beneficiary designations on non-probate assets like 401(k) plans, IRAs, or life insurance policies. Those must be updated manually.
4. Relying on Joint Tenancy as Your Estate Plan
Some people add a child's name to their home's deed as a joint tenant, thinking this avoids probate. While joint tenancy does transfer property at death without probate, it creates serious problems: the property becomes vulnerable to the child's creditors and lawsuits, it may trigger a property tax reassessment, and it can generate gift tax implications. A properly funded trust accomplishes the same goal without these risks.
5. Not Planning for Incapacity
Estate planning is not just about what happens after death — it is equally about what happens if you become incapacitated during your lifetime. Without a durable power of attorney and advance healthcare directive, your family may need to petition Sacramento Superior Court for a conservatorship to manage your finances or make medical decisions. This process is public, expensive, and emotionally draining.
A comprehensive estate plan includes a durable power of attorney for financial matters (Probate Code Sections 4000-4545) and an advance healthcare directive (Probate Code Sections 4700-4701) that designate trusted individuals to act on your behalf.
6. Using DIY Templates Without Legal Review
Online template services are tempting because they are inexpensive, but they cannot account for California-specific requirements, complex family situations, or the many nuances that affect whether your plan will actually work. Common issues with template documents include improper execution (missing witnesses or notarization), failure to account for community property rules, generic language that creates ambiguity, and missing pour-over wills for trust-based plans.
A minor drafting error can invalidate an entire document or create unintended consequences that are only discovered after it is too late to fix them.
7. Forgetting About Digital Assets
In today's world, your digital presence has real value. Cryptocurrency holdings, online businesses, digital photo libraries, social media accounts, email accounts, and streaming service subscriptions should all be addressed in your estate plan. California adopted the Revised Uniform Fiduciary Access to Digital Assets Act (Probate Code Sections 870-884), which governs how fiduciaries can access digital assets — but only if your estate plan properly authorizes such access.
Take Action Today
If you recognize any of these mistakes in your own situation, the good news is that most can be corrected with proper legal guidance. At Abrate & Olsen Law Group, we help Sacramento families create, review, and update estate plans that truly protect their interests. Contact us for a consultation to ensure your plan is complete, current, and properly funded.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Contact an attorney for guidance specific to your situation.