Estate planning mistakes that could leave your family in crisis
Written and accurate as at: Mar 14, 2025 Current Stats & Facts
An estate plan is more than just a Will — it’s a comprehensive strategy for protecting your legacy and your loved ones. But crafting one can be a minefield of potential missteps, especially if you don’t have the right experts on your side. Below, we look at some common mistakes people make and what you can do to avoid them.
Not getting around to writing a Will
One of the biggest mistakes many people make is not having a Will in the first place. This might come down to being too young or not having enough assets, but plenty of older Australians find themselves in this position simply because they haven’t found the time.
If you die without a Will, you’re said to have died ‘intestate’ and your assets will be distributed according to the rules of intestacy. What this ultimately looks like will depend on your state or territory, but it might result in loved ones getting a smaller or larger share of your assets than you intended.
Not informing your family of its whereabouts
Your Will is of no use to anyone if no one knows where it’s located, and leaving your family in the dark could create headaches and hurdles during what’s undoubtedly an already difficult time.
To spare your family or executor digging around your belongings or desperately calling local law firms, you should let them know early on where you intend to store it. This might be in a safe deposit box at your bank, with your lawyer, or in a secure location in your home.
Ignoring incapacity planning
Many people forget there’s more to estate planning than deciding where your assets will go once you pass away. It’s also about preparing in case you lose the ability to make key decisions about your health and finances.
If your estate plan doesn’t cover incapacity planning, conflicts could break out among your family members over things like medical treatment or which person is chiefly responsible for your care. In the worst case scenario, a lack of clear directives could even lead to legal disputes between them.
Ideally, you should have the following in place:
- Advance care directive: this lets doctors know what type of care or treatment you want if you’re no longer able to communicate or make the decision yourself.
- Enduring power of attorney: this authorises someone to manage your financial and legal affairs on your behalf (e.g. operating bank accounts, signing documents and selling assets).
- Enduring guardianship: this authorises someone to make health and lifestyle decisions on your behalf (e.g. where you live and which medical treatments you receive).
Not adequately providing for dependents
If someone who’s entitled to a share of your estate goes without a mention in your Will, they might decide to get the courts involved. This can be expensive and emotionally trying for everyone involved, and can lead to the court adjusting the distribution of assets in potential undesirable ways.
While there are no ironclad ways to prevent future claims on your estate, you might be able to reduce the chances of this happening by showing that anyone eligible to contest your Will was considered and there was some effort to provide for them. If there are people you intend to give nothing, it might help to write a statement explaining your reasons so it can’t be argued that you simply forgot.
Not updating your Will after a major life change
Your Will isn’t something you can set and forget — ideally, you should be reviewing it as your circumstances change and your assets grow.
Some scenarios that should trigger a review include:
- If you buy or sell a property
- If you marry, separate or divorce
- If you receive an inheritance
- If one of your beneficiaries passes away
- If a new beneficiary is born
- If you start a business
Appointing an executor who isn’t up to the task
Your executor is the person tasked with managing your estate after you pass away, so they should be someone you trust to rise to the occasion. When the time comes, they’ll have to round up your assets, handle any outstanding debts, and make sure everything goes where you intended it to — all while dealing with the grief of your passing.
The role can make pretty big claims on their time, so if you’re not confident that they can fulfil their duties you might be better off appointing an independent party instead (such as a solicitor, accountant, or even a specialist trustee company). Of course, that will mean paying a fee for their services.