At Krause Estate Planning & Elder Law Center, we provide comprehensive estate planning and elder law services designed to protect your assets and ensure your wishes are honored. Our commitment goes beyond simply drafting documents regarding your financial affairs — we work closely with clients to help them avoid common pitfalls that can complicate the estate planning process. Understanding these frequent mistakes is the first step toward creating a clear, effective plan that safeguards your family’s future. Contact us today to get personalized, comprehensive assistance from an estate planning attorney.
Introduction to Estate Planning
Estate planning is the process of organizing and preparing for the management and distribution of your assets and affairs during your lifetime and after your death. This includes creating legal documents such as wills, trusts, powers of attorney, and healthcare directives to ensure your wishes are carried out and your loved ones are protected.
The importance of estate planning lies in its ability to provide clarity and control over your financial and personal matters. Proper estate planning helps minimize estate taxes, avoid probate delays, protect beneficiaries — including minor children — and reduce the potential for family disputes. With thoughtful planning, you can secure your legacy, provide for your family’s future, and ensure that your assets are distributed according to your wishes.
Understanding Common Estate Planning Mistakes
#1 Not Having a Plan
One of the most critical mistakes many individuals make is not having a plan. Without a formal estate plan, your assets and personal affairs may be distributed according to state intestacy laws, which often do not align with your specific wishes. This can lead to confusion, delays, and disputes among family members during a difficult time. Additionally, without clear instructions, important decisions — such as who will care for minor children or how debts and taxes will be handled — may be left to the courts, potentially causing unnecessary stress and financial hardship for your loved ones.
#2 Not Making Updates After Major Life Events
Another common error is failing to update estate planning documents regularly. Life is full of changes, including marriage, divorce, the birth of children or grandchildren, the acquisition or sale of property, and significant changes in financial circumstances. If your will, trust, or other estate planning documents are not updated to reflect these changes, your plan may become outdated or ineffective. For example, an ex-spouse may still be named as a beneficiary in the original estate plan document, or new assets may not be properly accounted for in a large estate. Regular reviews with an attorney ensure your documents remain current and aligned with your goals.
#3 Forgetting Bank Accounts and Assets
Many people overlook digital assets when creating their estate plans. Digital assets include everything from online banking, life insurance policy, retirement accounts, and investment accounts to social media accounts, email accounts, digital photos, and cryptocurrencies. Without clear instructions on how to access and manage these assets, your heirs may face significant challenges in retrieving important information or closing accounts. Including digital asset planning as part of your overall estate plan helps ensure these modern assets are protected and properly handled.
#4 Not Addressing the Estate Owing Taxes
Another frequently missed aspect of estate planning is ignoring tax implications. Estate taxes, inheritance taxes, and income taxes can significantly reduce the value of your estate if not properly planned for. Without strategic planning, your beneficiaries may face unexpected tax burdens that diminish their inheritance. Utilizing tools such as trusts, gifting strategies, and other tax-efficient planning techniques can help minimize estate taxes.
After death, there are no state income taxes on the deceased person's income in most states, including Wisconsin. However, any income the estate or trust generates after the person's death — such as interest, dividends, or rental income — may be subject to state estate tax.
There is no federal income tax on the deceased's final personal income return beyond the date of death, but the estate itself may owe federal income taxes on income earned by the estate after death. Additionally, the federal government imposes an estate tax on estates exceeding a certain value threshold (currently $13.99 million in 2025, subject to change), which is separate from income tax.
It’s important to work with an experienced attorney to understand how income and estate taxes may apply to your specific situation. Working with an experienced attorney can help you understand the tax consequences specific to your situation and develop a plan that maximizes the value passed on to your heirs, including all your digital assets.
#5 Not Naming Who WIll Make Financial Decisions and Medical Decisions
Finally, many people make the mistake of not appointing a reliable executor or personal representative. The executor has immense financial power, playing a vital role in managing your estate, paying debts and taxes, and distributing assets according to your will. Choosing a primary beneficiary who is trustworthy, organized, and capable of handling these responsibilities is essential. An unreliable or unwilling executor can cause delays, mismanagement, or even legal disputes that complicate the probate process. It is also important to name alternate executors in case your first choice of beneficiary designations is unable or unwilling to serve.
#6 Not Having a Living Will
A living will is essential for clearly outlining your final wishes regarding medical care, including decisions about life support and other critical treatments. Along with a health care power of attorney, it ensures that a trusted family member can make informed decisions on your behalf if you become unable to communicate. This proper documentation helps avoid confusion and ensures your final arrangements are respected.
At Krause Estate Planning & Elder Law Center, we help you avoid these common mistakes by providing personalized guidance and comprehensive estate planning services tailored to your unique needs. Our goal is to help you create a clear, effective plan that protects your legacy and provides peace of mind for you and your loved ones.
How Krause Estate Planning & Elder Law Center Can Help You Avoid Estate Planning Mistakes
At Krause Estate Planning & Elder Law Center, we provide personalized guidance to help you avoid common estate planning mistakes and ensure your plan reflects your unique goals and circumstances. Our experienced attorneys take the time to understand your situation and craft tailored solutions that protect your interests and the financial future of your loved ones.
We also offer a comprehensive review and updates of existing key documents, helping you keep your estate documents current as your life changes. Whether you’ve experienced major life events or simply want to ensure your plan remains effective, we work closely with you to make necessary adjustments and keep your wishes clear.
Additionally, we develop strategic approaches for minimizing estate tax liability and protecting assets, helping to preserve your estate’s value for future generations. By leveraging advanced planning tools and techniques, we aim to reduce tax burdens and safeguard your assets against potential risks. With Krause Estate Planning & Elder Law Center by your side, you can have confidence that your estate plan is thorough, up to date, and designed to provide peace of mind.