Lawyers Share 15 Costly Mistakes They See People Make in Their Wills

It's hard to overstate the importance of writing a will, but you should be aware of surprising financial mistakes that cause confusion, legal battles, and family infighting, all because of your last will and testament.

We talked to estate planning attorneys from around the country to get their perspectives on the most common mistakes that people make and share their expert insight into crafting a will that reflects your wishes and protects your family.

Leaving specific assets instead of percentages

Many people leave specific assets, such as a house or a financial account, to an individual rather than allocating a percentage of the estate to that individual.

Tracy A. Craig, a partner attorney at Seder and Chandler, says there are fairer ways to divvy up an inheritance. "If you leave a particular house or financial account to an individual and you sell the house, refinance it, or spend money from the particular financial account, then the person might not be getting what you want them to," says Craig.

Instead, she recommends leaving each heir a percentage of your estate so that beneficiaries each receive their fair share, regardless of how the assets change in value.

Naming minors as beneficiaries

Many people mistakenly name minors as direct beneficiaries in their wills, but Craig warns against naming minors as heirs as "there is no one with legal authority to receive the assets." As a result, the family will have to go through the courts to access any inheritance.

Instead, Craig recommends setting up a trust to avoid money mistakes by ensuring the assets are managed responsibly until the child reaches adulthood.

Relying solely on beneficiary designations

Some individuals believe they can skip a will by naming beneficiaries on all their accounts. However, Craig points out that this approach leaves no one in charge of handling taxes, paying creditors, or ensuring assets are distributed fairly.

Having a well-drafted will can prevent unnecessary complications by designating someone to oversee the estate.

Failing to explicitly disinherit someone

Some individuals may choose to exclude certain next of kin from receiving an inheritance, but doing so properly takes more than just omitting their name.

"One of the most common errors I see frequently in DIY wills is disinheriting someone without explicitly naming them and directly stating the decision to disinherit," says attorney Justin Kennedy of Kemp, Schaeffer, & Rowe.

Such oversight can lead to confusion and lengthy legal battles. However, Kemp says, if you directly name the individual and state they are disinherited, it takes away their legal footing to contest the will.

Attempting to control inheritance from the grave

Kennedy also notes that some people try to dictate how their heirs spend their inheritance after their passing, which can create legal complications.

A will does not allow you to enforce conditions on how money is spent after a recipient's death, according to Kennedy. If you want permanent, post-mortem control, he says you would need to establish a trust.

Not including a no-contest clause

For those concerned about potential disputes, Kennedy recommends adding a no-contest clause. "Not having one can open the door to lengthy disputes among heirs," says Kennedy.

Having a no-contest clause deters beneficiaries from challenging the will. Without this safeguard, says Kennedy, legal battles can delay distribution for years.

Using DIY will services

Katherine A. Southard, an estate planning attorney with Southard Estate Planning who is admitted in New York, California, and Georgia, cautions against relying on online will-making services.

"We've had clients ask why they can't just use a DIY platform for their estate planning documents," says Southard. "We advise against this because a lot of online programs don't consider state laws and regulations."

Southard recommends consulting a local attorney instead to ensure your will meets legal requirements.

Not transferring assets into a trust

Many people will wisely set up trusts as a more streamlined and efficient way to pass down assets. However, not everyone who sets up a trust takes the steps to properly fund it.

"If you don't properly transfer your [house] deed into your trust, then that asset will go through probate," according to Southard.

She also notes that any retirement accounts need to be set up with the correct individual beneficiaries and the trust as a successor beneficiary.

Not updating beneficiaries after major life events

Wills should be updated after major life events such as births, deaths, and divorces.

Southard's firm has seen instances in which clients designate their spouse as a beneficiary, but after they divorce and remarry, they forget to update the beneficiary designation, and their ex-spouse ends up with the assets.

Naming co-executors who can't work together

Many parents, perhaps hoping to avoid the appearance of favoritism, name both of their children as co-executors. This, however, can morph into a nightmare if they can't work together.

Southard recalls a case where two adult children were unable to work together as co-executors. "They argued over everything — even something as silly as a hammer." The disagreements led to such neglect that one of the inherited homes became damaged beyond repair.

Choosing a single responsible executor can prevent unnecessary conflicts.

Ignoring digital assets

Derek Jacques, an attorney with Mitten Law Firm, emphasizes the importance of addressing digital assets.

"Whether it be your Facebook account, cryptocurrency, or even just photos kept in a Dropbox folder, if you don't account for your digital assets, you risk them being a source of tension among your descendants," warns Jacques.

A digital asset provision in your will ensures access and management of online property, including social media accounts, cloud files, and revenue-generating digital assets like YouTube videos monetized with ads and sponsored links.

Not storing the will properly

A will is useless if no one can find it or if it's not stored properly. Jacques advises keeping any paper wills in a strongbox or safe to prevent potential water or fire damage.

It's also a good idea to inform trusted individuals where your will is stored.

Failing to choose a reliable executor

Executors play a crucial role, yet many people choose someone unprepared for the responsibility. Jacques has seen executors who, for various reasons, don't notify all relevant parties when the will goes through probate.

It's important that the testator (creator of the will) choose an executor who is reliable and familiar with the beneficiaries and the estate. A poor choice can lead to delays, disputes, and mismanagement of estate funds.

Not reviewing the will regularly

Life changes, and so should your will. Jacques recommends reviewing your will at least once a year.

Beyond divorces, births, and weddings, other dynamics are at play.

Beneficiaries may pass away before new beneficiaries, like grandchildren, are born. And there may be major property transfers, like the purchase or sale of a home. "All of this needs to be updated in your will, or else you risk a lengthy probate process," says Jacques.

Not writing in plain language

Jacques warns that unclear or overly complex wording in a will can lead to confusion and disputes. "I see a lot of clients that don't use precise language, making their intentions hard to decipher," he explains.

Writing in straightforward, easily understood terms crystalizes your intentions, both for the beneficiaries and the executor.

Bottom line

Writing a will is essential for protecting your assets and making sure your final wishes are honored, but mistakes can lead to costly disputes and delays.

From failing to update beneficiaries to not seeking legal advice, avoiding these common errors can help you create a will that offers clarity and security for loved ones. Lawyers can help you navigate tax liability, so you prepare yourself financially for your loved ones and minimize Uncle Sam's cut.

You May Also Like

23 Ways To Get Money Without Getting A Second Job

By FinanceBuzz Editors

How To Save Money on Car Insurance: 12 Ways to Lower Rates

By Elyssa Kirkham

10 Things Seniors Born Between 1941-1969 Could Take Advantage Of

By FinanceBuzz Editors

19 Dumbest Things Smart People Waste Money On

By Team FBZ

7 Moves If You Want to Stop Living Paycheck to Paycheck

By FinanceBuzz Editors

7 Clever Ways to Crush Your Debt

By FinanceBuzz Editors

Help Protect Your Savings From Stock Market Volatility With Gold

American Hartford Gold Benefits

• American Hartford Gold helps individuals protect their retirement by rolling over IRAs and 401(k)s into physical gold.
• Includes FREE IRA rollover and storage for up to 3 years.
• Get up to $20,000 in free silver on qualifying purchases.

Download your guide for free

---

Subscribe Today

Learn how to make an extra $200

Get vetted side hustles and proven ways to earn extra cash sent to your inbox.

or

Subscribe Now →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms