Avoiding Common Estate Planning Mistakes: A Guide for Pennsylvania Residents

Estate planning is one of the most important steps you can take to protect your loved ones, preserve your legacy, and ensure your wishes are honored. Yet, many people in Pennsylvania and beyond make costly mistakes that lead to confusion, disputes, and unnecessary taxes. Whether you're just starting your estate plan or revisiting it after major life changes, avoiding common errors can make all the difference.

Here are some of the most frequent estate planning mistakes—and how you can avoid them.

1. Failing to Create an Estate Plan at All

The most significant mistake is simply not having a plan. Without a valid will or trust, your estate will be subject to Pennsylvania’s intestacy laws, which determine how your assets are distributed—often in ways that may not reflect your wishes. This can create legal headaches for your family, delay the probate process, and cause rifts among beneficiaries.

Solution: Work with an estate planning attorney to draft a will, consider whether a revocable living trust is appropriate, and designate key roles like executor and guardian for minor children.

2. Not Updating Your Plan After Major Life Changes

Marriage, divorce, births, deaths, and significant financial changes should all prompt a review of your estate plan. Failing to update documents can result in unintended beneficiaries (like an ex-spouse) inheriting your assets or loved ones being left out entirely.

Solution: Review your estate plan annually and after any major life event to ensure it reflects your current wishes and circumstances.

3. Overlooking Beneficiary Designations

Assets like life insurance policies, retirement accounts, and payable-on-death (POD) bank accounts are transferred directly to the named beneficiaries, bypassing your will. If those designations are outdated, they could override your estate planning intentions.

Solution: Regularly review and update all beneficiary designations to align with your overall plan.

4. Choosing the Wrong Executor or Trustee

Your executor or trustee is responsible for managing and distributing your assets. Appointing someone who is unwilling, untrustworthy, or unqualified can create administrative problems and potential conflicts among heirs.

Solution: Choose someone responsible, organized, and ideally familiar with your wishes. Consider naming a professional fiduciary or attorney if appropriate.

5. Not Planning for Incapacity

Estate planning isn't just about what happens after death—it also includes planning for incapacity. Without documents like a durable power of attorney and health care directive, your loved ones may be forced to petition the court to make decisions on your behalf.

Solution: Include financial and medical powers of attorney in your estate plan so trusted individuals can act on your behalf if you become incapacitated.

6. Ignoring Estate and Inheritance Taxes

Many people assume that estate taxes only apply to the wealthy. While federal estate taxes have high thresholds, Pennsylvania imposes its own inheritance tax on most transfers—even from parent to child. Failure to plan for this can lead to avoidable tax liabilities.

Solution: Use lifetime gifting, trusts, and other tax planning strategies to minimize your estate’s exposure to inheritance taxes.

7. Putting Everything in Joint Ownership

While joint ownership can simplify asset transfer upon death, it can also lead to unintended consequences—especially if the joint owner has creditors or predeceases you. It can also cause unequal distributions among children if one child is named on all accounts.

Solution: Be strategic about ownership and consider using transfer-on-death designations or trusts instead.

8. Leaving Out Digital Assets

From online bank accounts and email to social media and cloud storage, digital assets are often overlooked in estate plans. Without clear instructions, your executor may not be able to access or manage these accounts.

Solution: Maintain a list of your digital assets and credentials, and provide written authority for your executor to access them.

9. DIY Estate Planning Without Legal Guidance

Online forms and DIY kits may seem cost-effective, but they often lead to improperly executed documents that fail to comply with Pennsylvania laws. This can render your will invalid or result in assets not being distributed as you intended.

Solution: Consult an experienced estate planning attorney who understands Pennsylvania law and can tailor your documents to your specific needs.

10. Failing to Fund a Revocable Trust

Setting up a revocable living trust can help your estate avoid probate, but it only works if the trust is properly funded. That means retitling assets in the name of the trust and updating beneficiary designations accordingly.

Solution: Work with your attorney to ensure all necessary assets are correctly transferred to your trust.

11. Leaving Lump Sum Inheritances to Young or Immature Beneficiaries

Giving young adults a large inheritance outright can lead to financial mismanagement, tax issues, or even exploitation. Without oversight, the money may not be used wisely.

Solution: Set up a trust that distributes funds in stages or based on specific milestones like education, age, or life goals.

12. Ignoring Special Needs Planning

If you have a loved one with disabilities, leaving assets directly to them can jeopardize their eligibility for government benefits like Medicaid or SSI.

Solution: Establish a special needs trust to provide financial support without affecting benefit eligibility.

13. Not Addressing Business Succession

If you own a family business, failing to plan for its transition can lead to operational disruptions, family disputes, or the loss of the business entirely.

Solution: Create a business succession plan that outlines how the business will be managed or transferred upon your death or incapacity.

14. Misunderstanding Joint Tenancy vs. Tenancy in Common

Real estate titled incorrectly can create unexpected results at death. For instance, joint tenancy includes the right of survivorship, while tenancy in common does not.

Solution: Review titling with your attorney to ensure property ownership aligns with your estate planning goals.

15. Not Communicating Your Plan to Loved Ones

Keeping your estate plan a secret can lead to surprises, confusion, and disputes after your passing. Clear communication reduces the risk of misunderstandings and litigation.

Solution: Share the location of your estate documents and explain your intentions with key family members and fiduciaries.

Estate planning is not just for the wealthy—it’s for anyone who wants to protect their family, avoid unnecessary taxes, and ensure a smooth transition of their legacy. The mistakes outlined above are common, but entirely avoidable with thoughtful guidance and professional support.

If you’re unsure whether your estate plan is up to date—or if you don’t have one at all—the attorneys at Ament Law Group, P.C. are here to help. Our experienced estate planning team understands the complexities of Pennsylvania law and will work with you to create a plan that protects your loved ones and preserves your legacy.

Call us today at (724) 733-3500 or visit www.ament.law to schedule a consultation.