The 2025 Trust & Will Estate Planning Report shows that Americans are still not willing to plan their estates. 55% of Americans lack estate documents, and only 31% of survey respondents made a basic will. This lack of preparation comes at a time when financial worries are at an all-time high.
Many families think that writing a will or setting up a trust is a one-time job that is easy and straightforward. But even questions like “How much does a will cost in Louisiana?” can show how complicated and different estate planning costs can be. The size of the estate, the legal fees, and the rules of the local court should be considered. Mistakes can be even worse in Louisiana, where succession laws and forced heirship rules complicate estate administration.
It’s important to know how much things will cost, but not making a complete, well-organized estate plan or not updating documents can lead to legal battles that waste money and delay inheritance. People can better protect their legacy and lower the chance of future disputes if they know the common mistakes that lead to trust litigation.
Failing to Update Estate Plans Regularly
Many people tend to neglect annual updates to their estate plans, and unfortunate complications can arise fairly easily down the road.
Life changes will dictate the planning updates to be done: marriages, divorces, and the birth of a baby. Should you let these changes go unaddressed and un-updated in your documents, you might be leaving your confused and unprotected family members behind.
An all-too-common scenario is when beneficiary designations remain unchanged, with the consequence that inheritances must rightly be delivered to a wrong set of beneficiaries. Every three to five years, the breeder of your estate should review it, or a major life event has just occurred.
If someone dies without a last will and testament (intestate), their real estate goes to several family members right away, like siblings or cousins. According to trust litigation lawyer Shanone Emmack, this can cause the heirs to disagree about what to do with the property, such as whether to sell it, keep it, or split it up.
Don’t wait until it’s too late to make arrangements. Early action will prevent potential arguments later and ensure everything is clear and perfectly honored according to your intent.
Incomplete or Ambiguous Language in Documents
The careful drafting of estate planning documents ought to make sure that your intentions are fully understood and that they are carried out. Resorting to incomplete or ambiguous language creates confusion in the processes, leading to disputes and confrontation among the heirs.
Suppose you start using vague terms like “my possessions.” This leaves room for interpretation and causes individuals to disagree over what you intended. In this case, you have to be clear in specifying what assets you want distributed and how.
This specification will eliminate the likelihood of any misunderstandings and lawsuits. Also, give precise instructions for your executor to adhere to.
Ignoring Tax Implications and Consequences
While much thought has probably been given to your estate planning, disregarding tax possibilities can defeat your intent. Not weighing the tax considerations may put an unlooked-for burden upon your heirs, thus, fraying away the value of the estate.
For instance, estate taxes generally weigh down the little that reaches the beneficiaries, which begins a wave of tension and conflict. While planning your estate, you may give little attention to gifts or charitable contributions that would lessen the tax burden.
Understanding those tax considerations will play an important role in your transfer of different assets, such as retirement accounts, real estate, etc. A tax consultant during your planning phase would save costly mistakes and make sure the estate plan meets your financial goals.
Not Communicating Plans With Family Members
Communication regarding your estate planning is often neglected, which can give rise to misunderstandings and, ultimately, disputes over the years.
If, on the other hand, you do not provide your loved ones with your intentions, they might feel surprised or uncertain as to what is expected of them; such lack of clarity breeds tension, mostly when the family dynamics are already complex.
When heirs expect certain assets and suddenly learn otherwise, the bitterness can set in fast. Open discussions about your expectations disarm false assumptions, clarify your intent, and may even bind family ties.
Allowing yourself the time to explain your thinking cuts down on potential confusion and conflict. Remember, open disclosure is what ensures that your dearest relatives will truly be putting into effect your wishes on their own accord without unnecessary hard feelings.
Choosing the Wrong Executors or Trustees
Choosing the right executors or trustees can make or break the functioning of your estate plan. Should you appoint someone without financial skills who is not goal-oriented, you could encounter heavy delays and misinterpretations.
It is important to choose people who understand what you wish and want to perform another responsible act in managing the assets. Don’t choose family members just because they’re family; select someone for their skills rather than for their blood relation.
Also, consider whether the individuals are able to negotiate between beneficiaries. If they are poorly chosen, the executor or trustee could be scrutinized through trust litigation, which will swallow time and resources.
Try to communicate so that they, and also your family, are very clear on the selection decision, thus avoiding unnecessary misunderstandings along the way. The right choice would see the estate working for your intentions with as little drama as possible.
