When preparing for the future, knowing the mistakes to avoid in estate planning is just as important as creating the documents themselves. A poorly executed estate plan that is riddled with errors, or no plan at all, can lead to costly probate delays, unexpected taxes, and painful family disputes.
Whether you’re drafting your first will or revisiting your estate strategy after a major life change, a proactive approach helps protect your assets and your loved ones. This guide walks through the most frequent pitfalls and how to avoid them—so your estate plan reflects your true intentions and stands the test of time.
Questions about creating or modifying your estate plan? Call Arlington Heights attorney Roger W. Stelk at 847-506-7330.
What Are Common Estate Planning Mistakes in Illinois?
Several estate planning pitfalls commonly plague people in Illinois as they put their affairs in order. As a result, the family members they leave behind may have complex matters to sort out, exacerbating their stresses during a likely already difficult time. Some of the most common mistakes include:
- Not creating a will
- Not understanding the plan that they create or how it works
- Not knowing the estate tax requirements
- Not including advance care directives
- Not funding the trusts created
- Not regularly reviewing and updating the plan
Avoiding these and other common mistakes can help prevent costly disputes, delays, and confusion for your loved ones after you’re gone.
Knowing How Estate Plan Works
Too often, people take a passive role in estate planning, signing documents without fully understanding what they do or how they work. But having a basic grasp of your estate plan is essential to ensuring it reflects your goals.
Decisions that make sense at the time can become unclear years later. Without context, you or your loved ones may not remember why specific choices were made. Taking notes during the planning process and reviewing key decisions periodically can provide clarity and prevent confusion down the road.
Understanding Estate Tax
When developing a plan, many find it helpful to understand how estate taxes work. Going through probate involves settling the decedent’s affairs. The state of Illinois has set the threshold at $4 million. As such, estates valued at less than the limit may have an exemption from paying such taxes. Knowing the state and federal thresholds helps inform how people develop their plans. For instance, a person with assets in excess of $4 million will often consider options to limit the taxes their estates face, while someone whose property total falls below the threshold may not need to worry about such issues.
Addressing Special Circumstances
Estate plans should include contingencies for circumstances other than the end of a person’s life. People often think of estate plans as simple wills, trusts, and such documents for passing on their assets and property to family, beneficiaries, or others after their passing. However, such plans should also include advance care directives, such as living wills and health care powers of attorney. These documents aid with emergency, lifesaving, and end-of-life situations when, due to physical or mental incapacity, a person cannot make decisions for himself or herself.
In addition to advance care documents, people should also make sure their plans address any specific needs of them or their beneficiaries. For instance, a person who intends to provide for a child with special needs after his or her passing will typically want to set up a different type of trust than a person who wants to transfer ownership of a family business.
Funding Trusts
Creating trust is only part of the process, people must also fund those trusts. Trusts do not work like a bank account, where creators simply deposit funds in. Rather, they often involve steps such as transferring ownership of assets, recording paperwork with the appropriate state agencies or offices, and in some cases, obtaining a tax identification number.
Reviewing the Plan Regularly
Estate planning requires updating. Many people mistakenly look at estate planning as a one-time necessity. In addition to creating their plans, however, people should conduct regular reviews to ensure it reflects on their life changes. The death of a family member, a marriage, a divorce, the birth of a child, or other such factors may give cause for people to update their plans. Aside from major life events, people may consider performing regular reviews every three to five years.
Updating Beneficiaries
Life doesn’t stand still—and neither should your estate plan. Significant events like marriage, divorce, the birth of a child, or the death of a loved one often require updates to your estate planning documents. These updates may include changes to your executor, beneficiaries, or healthcare decision-makers.
For instance, after a divorce, it’s critical to revise any documents that still name a former spouse as a beneficiary or executor. Likewise, if a relationship changes due to estrangement or falling out, you may want to remove that person from your will or trust entirely. Keeping your beneficiary designations and executor appointments up-to-date helps ensure your wishes are followed.
Failing to make these updates can lead to confusion, delays, or disputes during the probate process. In some cases, questions may arise—what if the executor does not probate the will? That scenario alone can create legal and emotional headaches for surviving family members.
Working with an experienced probate attorney can help you proactively manage these issues, avoid common estate planning mistakes, and protect your legacy according to your true intentions.
Why Is Working With an Estate Planning Attorney in Illinois So Important?
Many estate planning mistakes happen not from neglect—but from misunderstanding the legal or tax implications of your choices. That’s why working with an experienced Illinois estate planning attorney can make a critical difference. A lawyer can help ensure your plan is legally sound, tax-efficient, and customized for your personal, family, and financial situation.
For example, if your estate exceeds Illinois’s $4 million estate tax threshold, your attorney may suggest trusts or gifting strategies to minimize tax exposure. If you have minor children, a special needs beneficiary, or own a business, a one-size-fits-all plan simply won’t cut it.
How Often Should I Update My Estate Plan?
It’s best to review your estate plan every three to five years—or after any major life event. This includes marriage, divorce, a death in the family, or acquiring new assets. Updating beneficiaries on retirement accounts, insurance policies, and trusts is just as important as revising your will.
