10 Estate Planning Mistakes to Avoid in 2025 (And How to Fix Them Before It’s Too Late)
- The Spencer Law Firm
- Oct 20
- 10 min read
Every year, families lose more wealth to avoidable legal mistakes than to market crashes or bad investments.
Let me level with you: most people think estate planning means ticking off a few legal forms and being done. They believe, “I’ll do that later—when I’m older or have more assets.” Big mistake. Because when life or law changes, being late means being costly. As your copywriting mentor would say: you don’t just hope your legacy works out—you engineer it.
In 2025, the landscape of estate planning has changed — new tax thresholds, digital asset rules, and complex family structures are quietly creating traps that even smart, responsible people fall into.
At The Spencer Law Firm, we’ve seen these errors up close — wills that backfire, trusts that never get funded, families torn apart because one clause was missing.
The good news? Every one of these mistakes is fixable — if you catch it now.
By the end of this guide, you’ll know the 10 most expensive estate-planning errors we see in our practice, and how to correct them under 2025’s latest laws — so your family, your business, and your legacy stay protected.
TL;DR — 2025 Estate Planning Quick Summary
In 2025, the biggest estate planning mistakes include skipping updates after life changes, forgetting digital assets, using DIY forms, and failing to fund trusts. Review your plan every 3 years, name the right executors and beneficiaries, and get professional guidance to protect your family, business, and legacy.
Quick Answer: The most common estate planning mistakes in 2025 include: not updating your plan after life changes, forgetting digital assets, using DIY templates, naming the wrong executor, ignoring beneficiary designations, failing to fund your trust, overlooking business succession, and skipping attorney reviews.
Let’s break them down — and fix them before it’s too late.
Ignoring the Need for an Estate Plan
The Mistake
Too many people think they’re “not rich enough,” or “too young,” so they skip creating a will, trust, POA, or healthcare directive. But a plan isn’t [just] for the mega-wealthy: it’s for anyone who has someone who’d struggle if you were gone or incapacitated.
As one guide puts it: “the biggest mistake … is simply not having a plan.” And the consequences? Without a plan, your assets may be distributed by default state law, your loved ones may be left in probate court-mess, and your wishes might not be controlled.
The Fix
Create at least the basics now: a will, a power of attorney (financial and healthcare), and a document for end-of-life wishes (advance directive).
Don’t wait for “someday.” Set a deadline for this month or quarter.
Use experienced counsel (or a verified platform) to ensure documents are valid where you live.
Think: “If I died or got seriously ill tomorrow, what would my spouse/family have to deal with?” Then fix it.
Not Updating Your Estate Plan After Major Life Changes
Many people write their will once and never touch it again — even after a marriage, divorce, property purchase, or the birth of a child.
That’s like locking your financial future in a time capsule and hoping the world never changes.
Why It Matters: An outdated estate plan can send assets to an ex-spouse, leave new children out entirely, or trigger probate battles that drag on for months.
In 2025, with new digital assets and tax updates, even a three-year-old plan can be dangerously out-of-date.
The Fix: Review your estate plan every three years or immediately after any major life event. In [Your State], certain changes (like divorce) can automatically revoke portions of your will, so review sooner rather than later.
“Most estate-planning errors happen long before anyone realizes it — and they’re usually easy to prevent with a quick review.”— Bonnie Spencer, The Spencer Law Firm
Treating a Will as the Complete Plan
The Mistake
A will is important, but many people believe “I have a will, so I’m done.” Wrong. A will often does not avoid probate. It doesn’t cover incapacity (when you’re alive but unable to act). It doesn’t address assets with beneficiary designations or trusts.
Also, planning only for after you’re gone—ignoring what happens if you become disabled or incapacitated—is a huge oversight.
The Fix
Include living documents: durable power of attorney (financial), healthcare proxy, living will.
Evaluate whether a trust is appropriate for your situation (to avoid probate, manage assets).
Ensure your plan accounts for both death and incapacity.
Ask: “If I couldn’t make decisions today, who steps in? Does the document say so?”
Forgetting Digital Assets (2025’s No.1 New Risk)
Here’s the thing: you probably own more digital property than you realize.
Cryptocurrency, PayPal balances, Apple accounts, online investments, Dropbox, and social media all carry real financial or sentimental value.
Yet according to the 2025 EstatePlan Digital Trends Report, 68% of Americans have zero instructions for their digital assets.
Why It Matters: Without legal authorization, your executor can’t access or transfer these assets. They can vanish into cyberspace permanently.
The Fix: Include a digital asset inventory in your estate plan:
List account types, platforms, and access instructions.
Appoint a “digital executor” under your will or trust.
Reference your state’s adoption of the Uniform Fiduciary Access to Digital Assets Act (UFADAA).
“We now ask every client about cryptocurrency, PayPal, and cloud storage assets families used to overlook.”— Ashley Spencer, The Spencer Law Firm
Using DIY Estate Planning Templates
We get it, online templates are tempting. They promise speed and savings.
But here’s the truth: over 60% of DIY estate documents are legally defective or incomplete (ABA Legal Tech Report, 2024).
Why It Matters: Even a single missing witness signature or outdated state clause can make your will invalid. When that happens, the court decides who gets what — not you.
A real case from our files:
A family used an online will that lacked a valid signature block for their state. The probate court threw it out, leaving the entire estate to default intestacy rules. It cost them nearly $15,000 in legal fees to fix.
The Fix: Use online tools only for education, not execution.If you draft a document yourself, have a licensed estate attorney review it for state compliance. A professional review costs less than one probate mistake.
Naming the Wrong Executor or Trustee
Choosing the wrong person to manage your estate is like handing the keys to your business to someone who’s never run one.
Why It Matters: An unorganized or biased executor can create chaos — delayed asset transfers, missed deadlines, and family fights.
The Fix: Choose someone:
Financially responsible
Neutral and organized
Willing to follow professional guidance
Always name a successor executor or trustee, in case your first choice can’t serve.
Attorney Tip: If you run a family business, avoid appointing one child as trustee over others. Choose a neutral third party or corporate trustee to keep peace and efficiency.
Failing to Name or Update Beneficiaries & Contingents
The Mistake
Assets like life insurance policies, retirement accounts, and bank accounts often go to whoever you listed as beneficiary — regardless of what your will says. If you forgot to name contingent beneficiaries, or your named person passed away, it may go to your estate and go through costly probate.
Also, you may have conflicting documents: a will that says one thing, a beneficiary form that says another. That confusion creates risk.
The Fix
For every asset (IRA, 401(k), insurance, “payable on death” bank account), list primary and contingent beneficiaries.
Review beneficiaries after major life events (marriage, divorce, death of a named person).
Cross-check your will/trust, beneficiary designations, and any titled assets — ensure they all align.
Question: “If my primary beneficiary died, who gets it next?” If you don’t know, fix it.
Letting the Same Old Plan Sit While Life and Law Move On
The Mistake
Life doesn’t stand still: marriages, divorces, births, deaths, acquisitions, new laws — if your plan never gets updated, it may not reflect your current wishes or the legal environment.
For instance, estate-tax thresholds, state laws, and asset types may change. If you ignore updates, your plan could backfire.
The Fix
Set a recurring schedule (every 2-3 years) to review your plan.
Trigger immediate review when something major happens (marriage, divorce, child born, business sale).
Ask your attorney or advisor: “Has any law changed recently that affects my estate plan?” Don’t assume.
Include language in documents allowing successor agents/trustees to adapt where allowed.
Failing to Fund Your Trust
Here’s a shocker: nearly half of all revocable living trusts are never properly funded.
People assume once the document is signed, they’re done. But a trust only controls what’s titled in its name.
Why It Matters: If you never transfer your property or bank accounts into your trust, those assets must go through probate — defeating the whole purpose.
The Fix: Re-title your:
Real estate deeds
Bank and brokerage accounts
Life insurance and business interests
into the name of your trust.
Then, keep a Trust Funding Checklist to ensure new assets are added automatically.
Ignoring Estate Tax or Gift Tax Opportunities (and Risks)
The Mistake
Many people assume “I’m nowhere near the estate-tax threshold, so I don’t care.” And that may be true today for some, but law changes, or state taxes, or gift taxes, or portability issues can bite you
Not leveraging your full exemption now, or mis-filing an estate tax return to elect portability (spouse uses unused exemptions), can cost millions. (See recent real-world case of a huge mistake.)
The Fix
Review current federal (and state) estate/gift tax thresholds. For 2025, the federal exemption is about $13.99 million for individuals.
If the estate may approach that level (now or later), consult with an estate-tax specialist: trusts, lifetime gifts, and charitable planning may be useful.
Understand that choosing not to plan for taxes leaves money on the table—or worse, triggers a tax liability.
If married, check if filing an estate return for portability is appropriate so the spouse retains the unused exemption. (This is one of the most overlooked traps.)
Ask: “What can I do today to legitimately reduce taxes to my heirs without undue risk?”
Procrastination: Waiting for the “Right Time” or “More Assets”
The Mistake
This might be the costliest mistake of all: simply postponing estate planning because you feel too young, not rich enough, or view this as a “future” task.
But the harsh truth: you don’t know what tomorrow brings. Illness, accident, incapacity, legal changes — all make delay dangerous.
Sources list “procrastination” as a key recurring fatal flaw.
The Fix
Choose a hard deadline: e.g., “By the end of this month, I will have the core plan documents executed.”
Break it into smaller tasks: (1) choose attorney/advisor, (2) list assets & beneficiaries, (3) draft documents, (4) execute & store.
Realize: even a simple plan is far better than no plan. You can always update later.
Ask yourself: “What’s the harm if I start today?” The answer is often: a lot less trouble than waiting.
Bonus: Not Consulting an Estate Attorney in 2025
This year’s estate laws are shifting again from federal estate tax thresholds to digital asset legislation and state-specific probate updates.
Trying to “go it alone” in a moving legal environment is like driving blindfolded on a new road.
Why It Matters: Small oversights can have huge consequences: tax penalties, invalid documents, and delayed inheritances.
The Fix: Schedule an annual or biannual estate review with a licensed attorney. Think of it as your “legal checkup” — a one-hour meeting that can save your family thousands later.
“The law changes, your life changes — your plan should too.”— The Spencer Law Firm Estate Team
2025 Estate-Planning Updates You Should Know
Federal Estate Tax Thresholds: The exemption remains at $13.61 million per person for 2025 but is set to sunset in 2026, potentially cutting the exemption in half.→ Translation: wealthy families should review gifting strategies now.
Digital Assets Laws: Most states have adopted the UFADAA, but enforcement varies.→ Ensure your executor is legally authorized to access your online accounts.
Cryptocurrency Reporting Rules: 2025 brings new IRS tracking standards for crypto holdings.→ Include those assets clearly in your estate plan to prevent loss or penalties.
Conclusion: Your Legacy Deserves More Than Luck
Estate planning isn’t about documents — it’s about peace of mind.
Your plan isn’t just a stack of papers; it’s a promise to your family that their future will be protected, clear, and conflict-free.
Avoid these ten mistakes, and you’ll sleep better knowing your legacy will outlast you — exactly as you intend.
Why 2025 Is Unique—And Why Acting Now Makes Sense
The legal/tax environment is shifting. For example, many references show that thresholds, exemptions, and trust rules are under review or changing.
With digital assets, crypto, online presence, and non-traditional wealth now more common, older plans from 10+ years ago may not cover these.
The wealth transfer to younger generations is accelerating, making legacy planning more urgent.
Families are more complex now (blended families, second marriages, business ownership), so the risk of mis-distribution or conflict is higher.
In short, you can’t just rely on an “old will drafted once and done.” You need a modern, dynamic plan.
Final Words of Advice
Here’s what you should do today:
Set the date to have a meeting with my estate-planning attorney/advisor.
Make the asset list: real estate, bank accounts, insurance, retirement, business, and digital assets.
Identify potential agents, executors, and trustees, and ask about their willingness.
Have the conversation: “This is what I want. This is why.”
Schedule periodic reviews (mark your calendar now).
Keep communication open with loved ones, so no one’s surprised.
Remember: estate planning isn’t about the rich thinking ahead, it’s about you controlling what happens when you can’t act, and protecting the ones you leave behind. The alternative? Letting state law, courts, or family disagreement control your legacy. That’s not confidence. That’s risk.
Ready to make sure your plan is solid for 2025? Schedule your Free Estate Plan Review with The Spencer Law Firm today.
Because the best time to fix these mistakes… is before it’s too late.
FAQ: Estate Planning Mistakes 2025
Q: How often should I update my estate plan?
Every three years or after major life changes like marriage, divorce, new children, or major asset purchases.
Q: Are online estate planning forms valid?
Often not. Many fail to meet state witness or notarization requirements. Always have an attorney review them.
Q: What’s the biggest mistake people make?
Not reviewing their plan regularly — outdated plans cause the most expensive problems.
Q: How can I protect my digital assets?
Create a digital inventory, assign a digital executor, and authorize access in your estate plan.
Written by: Ashley M. Spencer, J.D., Partner at The Spencer Law Firm — 15+ years in securities, corporate, and litigation law.
Education:
Juris Doctor (J.D.), Loyola University New Orleans College of Law — 2010
Bachelor of Arts (B.A.), The University of Texas — 2007
LinkedIn: linkedin.com/in/ashleyspencer
Reviewed by: Bonnie E. Spencer, J.D., M.B.A., Principal Attorney — 40+ years’ experience in business and securities law.
Education:
Juris Doctor (J.D.), Loyola University School of Law, New Orleans, 1980
Master of Business Administration (M.B.A.), Loyola University College of Business, 1980
Bachelor of Business Administration (B.B.A.) in Banking & Finance, Magna Cum Laude, Loyola University, 1976
Website: spencer-law.com/our-team
Publication Details Published: October 20, 2025 Last Updated & Legally Reviewed: October 20, 2025
Disclaimer: This content is provided for informational purposes only and does not constitute legal advice. Reading it does not create an attorney–client relationship. Please consult a qualified estate-planning attorney for personalized legal guidance.
Fact-Checked Legal Sources & References (2025)
State Probate Code Updates (Texas & California):
2025 EstatePlan Digital Trends Report: (Cited industry report analyzing U.S. estate-planning adoption and digital-asset inclusion trends.)