Common Estate Planning Mistakes in Pennsylvania

Estate planning works best when the documents, beneficiary designations and asset ownership all fit together. Many problems arise not because a person failed to create a will, but because the plan was never updated or key non-probate assets were overlooked.

Failing to Review the Plan After Major Life Changes

Marriage, divorce, births, deaths, changes in assets, relocation, business changes and changes in family relationships can all affect an estate plan. Periodic review helps ensure that the people named as beneficiaries, executors, agents and trustees still reflect the client’s intentions.

Assuming a Will Controls Every Asset

A will generally controls probate assets, not every asset a person owns. Life insurance, retirement accounts, transfer-on-death arrangements and some jointly owned property may pass according to beneficiary designations or ownership rules rather than the will. Those designations should be reviewed together with the estate plan.

Using Outdated Beneficiary Designations

Beneficiary designations can remain in place for years unless they are changed. After divorce, remarriage, death of a beneficiary or other major life events, review the current designations and confirm how Pennsylvania law and the governing account or policy affect them.

Failing to Keep Good Asset Records

An executor cannot efficiently administer property that cannot be located or identified. Maintain an updated inventory of important accounts, real estate, insurance policies, business interests and significant digital assets, together with information showing where key records are kept. Sensitive passwords should be stored securely rather than placed in a will that may become part of a public probate record.

Choosing the Wrong Executor or Agent

The oldest child or closest relative is not automatically the best person to serve. An executor, trustee or agent under a power of attorney should be trustworthy, organized, capable of handling financial and legal responsibilities, and reasonably able to work with the people affected by the plan.

Creating a Trust Without Coordinating Asset Ownership

A trust may not accomplish its intended purpose if assets that should be governed by the trust are never transferred or coordinated with it. Trust funding, beneficiary designations, tax consequences and the remainder of the estate plan should be considered together.

Ignoring Incapacity Planning

An estate plan should also address the possibility that a person becomes unable to manage financial or healthcare decisions. Financial powers of attorney and healthcare planning documents can identify trusted decision-makers and reduce uncertainty during incapacity.

Relying on Generic Forms Without Understanding Execution Requirements

Forms can appear simple, but estate-planning documents can have significant legal consequences. Pennsylvania execution requirements, tax issues, family circumstances and asset ownership should be considered before relying on a generic document.

Practical Estate-Plan Review Checklist

Review the will and any trust documents.
Confirm executors, trustees and agents are still appropriate.
Review beneficiary designations on insurance and retirement accounts.
Update the list of assets and liabilities.
Review powers of attorney and healthcare documents.
Consider recent family, financial or legal changes.
Coordinate the plan with business interests, real estate and long-term-care planning where appropriate.

Related Pennsylvania Estate Planning Resources

Frequently Asked Questions

How often should a Pennsylvania estate plan be reviewed?

There is no single required interval, but a review is sensible after major family, financial or legal changes and periodically even when circumstances appear stable.

Does changing a will automatically change beneficiary designations?

Generally, no. Retirement accounts, life insurance and other beneficiary-designated assets should be reviewed separately and coordinated with the overall estate plan.

Is a trust necessary for every Pennsylvania estate plan?

No. Whether a trust is useful depends on the assets, beneficiaries, tax considerations, administration goals and other circumstances.

Talk with a Pennsylvania Estate Planning Attorney

Learn more about ZwickLaw’s estate planning practice, probate and estate administration, and C.J. Zwick. Call (814) 371-6400 or use the ZwickLaw contact page.

This article provides general information and is not legal or tax advice. Estate-planning consequences depend on the documents, assets, family circumstances and current Pennsylvania law.