Estate planning is one of the best ways to protect your assets and support the people you care about, but simple mistakes can lead to big problems down the road.
At Woods & Bates, P.C., we’ve helped Illinois families avoid costly missteps by offering clear, judgment-free guidance.
In this article, we’ll highlight nine common estate planning errors—from outdated documents to missing key legal steps—and share how you can avoid them while staying aligned with Illinois law.
1. Failing to Create an Estate Plan
One of the most frequent errors is not having any plan at all. If you pass away “intestate” (without a will), Illinois law will determine who inherits your property. That usually means your assets go through a court-managed process, and the final outcome might not match your wishes.
This can be especially concerning for parents with minor children, since a court may decide guardianship matters if there is no valid will in place. Having a will can minimize confusion and keep siblings or other relatives from clashing over who gets what. A valid will clarifies how you want your belongings handled, ensures that any minors are cared for, and spares your loved ones time and frustration.
Before we move on, remember: planning is about gaining greater confidence. Even the simplest will, paired with supporting documents, can simplify the future for your family.
2. Mistakes Related to Beneficiary Designations
Life insurance policies, retirement accounts, and annuities typically pass straight to the names listed on a beneficiary form, regardless of instructions in a will. This special feature can be helpful, but it also opens the door to missteps if you aren’t consistent.
Not Naming or Updating Beneficiaries
One clear misstep is failing to name or update beneficiaries after major life changes, such as marriage or divorce. If your forms are outdated, a former spouse or someone else you no longer intend to include could inherit important assets. Remember to list contingent beneficiaries as well, so you’re covered if the primary person is not able to receive the assets.
A simple bullet list can help you track beneficiary updates:
- Review life insurance, retirement plans, and annuities after weddings or divorces.
- Check primary and contingent beneficiaries every few years.
- Confirm your forms match your will and broader estate plan.
By revisiting designations now and then, you prevent accidental transfers and keep your plan flowing smoothly.
Failing to Coordinate Beneficiary Designations
Another concern is forgetting that what’s on your beneficiary form usually overrides anything written in a will. For example, you might think your bank account will be shared equally among your children, but if the account is titled jointly with only one of them, that individual may claim all the funds. Regular check-ins ensure your beneficiary choices align with your current plans.
Once you’ve double-checked your designations, you’ll be better prepared for the next mistake on the list.
3. Improper Asset Titling
The way you hold title to assets has a big effect on how they move after death. Accounts held in joint tenancy or payable-on-death format can skip probate entirely and go straight to the surviving co-owner or named payee.
While this might be handy for avoiding court involvement, it can undermine a will’s instructions if not done thoughtfully. For instance, real estate held as joint tenants typically goes to the surviving tenant, even if your will states otherwise. Reviewing titles on deeds and accounts helps to keep everything in line with your broader strategy for distributing your wealth.
If it has been a while since you updated your records, consider checking the names on each account or property. Then you’ll not only reduce confusion, but also confirm that your estate plan is consistent from top to bottom.
4. Neglecting to Plan for Incapacity
Estate planning must cover more than what happens after you pass away. It also addresses who can handle decisions if you face a medical setback or mental decline.
Illinois allows you to name someone through a durable power of attorney, a document that can remain effective if you become unable to act for yourself. You can create separate powers of attorney for finances and health care decisions, so your bills and medical preferences are managed by a trusted person.
It’s also smart to have HIPAA release forms, ensuring certain individuals can access your medical records when needed. Without these forms, doctors might not be allowed to share vital details about your care, something that can complicate family decision-making.
5. Not Updating Your Estate Plan Regularly
Your life can change quickly, and those changes might affect your estate documents. Events like marriage, divorce, or the birth of a child are all good reasons to update your plan. If a named beneficiary or fiduciary passes away or becomes unavailable, you’ll want to make modifications right away.
Tax laws sometimes shift as well. Illinois imposes an estate tax for estates above a certain threshold (currently $4 million), and that can intersect with the federal exemption at higher levels. Since these thresholds can be adjusted over time, it’s a good idea to revisit your choices along with any new laws or regulations.
Consistent reviews mean fewer surprises and less paperwork for those you love.
6. Choosing the Wrong Fiduciaries
An executor (also called a personal representative) gathers your property and carries out your will’s directions. A trustee manages any trust you’ve created. Both roles require honesty, attention to detail, and an ability to handle paperwork without confusion.
Sometimes people choose a family member who may not have the patience or skill to manage these responsibilities. It can also happen that friction between relatives creates problems if your chosen individual isn’t prepared for disagreements. You can select a corporate fiduciary if your estate is wide-ranging or you need a neutral party, though it’s wise to research fees or minimum requirements beforehand.
After you pick your fiduciaries, explain what you expect so they understand their roles. That way, they’ll be more comfortable if they ever need to step in.
7. Ignoring Tax Implications
While federal estate taxes currently apply to a narrower range of individuals, Illinois has an estate tax that can impact families with property exceeding the state’s exemption amount. Illinois does not have a separate inheritance tax, but your estate can still face taxes if it sits above the state threshold.
A well-designed plan might include annual gifts, certain trusts, or philanthropic arrangements that lessen taxes. Here’s a basic table that compares the primary federal and Illinois thresholds:
| Type | Approx. Exemption | Comments |
| Federal Estate Tax | Generally around $12.92 million+ in 2023 (indexed) | Subject to adjustments over time |
| Illinois Estate Tax | $4 million | Applies to property valued above that mark |
Consulting a tax-aware estate plan can help you stay below these thresholds or handle them in a way that protects what you have set aside for your family.
8. Failing to Fund a Trust Properly
A trust on its own does little if you never transfer property under its umbrella. “Funding” the trust can mean changing account ownership or updating beneficiary designations so the trust becomes the legal holder of those assets. If real estate isn’t re-titled or if investment accounts aren’t moved into the trust, those assets might still get stuck in probate.
People often sign trust documents and forget the final step of making sure their accounts and property reflect the new ownership. A quick review with your estate planning attorney or financial advisor can confirm everything is in the trust’s name where it should be. This step spares your loved ones the time and cost of going through probate later.
Once funded, the trust can carry out your instructions smoothly, often with fewer filing requirements and expenses.
9. Not Communicating Your Plan
We sometimes see people keep their arrangements a secret, assuming their family will “figure it out” when the time comes. But open discussions reduce confusion and conflict. Let key family members know you have a plan and where to find the documents.
Clarity about your intentions can prevent disputes and help your loved ones carry out your wishes, especially if questions arise on health care choices or asset distribution. You might also write a letter of instruction, which isn’t legally binding but can guide your executor or trustee about smaller personal details, such as where to locate important keys or how to care for certain valuables.
Together, these steps can preserve harmony among survivors and protect the final shape of your estate plan.
Looking for Estate Planning Assistance?
We’re here to help you feel in control of your assets, your future, and the people who matter most. Call us at 217-735-1234 or visit our Contact Us page if you’d like to talk about wills, trusts, or any other estate planning matter. Our team at Woods & Bates, P.C. is committed to supporting your long-term success. We offer in-person and virtual services, and we look forward to hearing from you so you can move ahead with greater peace of mind.