Common Estate Planning Mistakes in Michigan (and How to Avoid Them)
Estate Planning Mistakes Are More Common Than You Think
Many people believe estate planning mistakes only happen to others. For example, people with complicated finances or unusual family situations). In reality, most estate planning mistakes are very common and preventable.
Mistake #1: Not Having an Estate Plan at All
The most common estate planning mistake is simply doing nothing.
Without an estate plan, Michigan law decides who inherits your property. The Probate Court decides who manages your estate. Your loved ones may face delays, confusion, and added stress.
Estate planning is not just for the wealthy. If you care about who makes decisions for you or who receives your property, having a plan matters.
Mistake #2: Assuming a Will Avoids Probate
Many people believe that having a Will means their family will avoid probate. This is a very common misunderstanding.
A Will does NOT avoid probate. A Will actually directs the probate process. While probate is not always a bad thing, it can be time-consuming and public. For some families, additional planning tools, such as Trusts or beneficiary designations, may help reduce or avoid probate altogether.
Mistake #3: Forgetting Powers of Attorney
Estate planning is not only about what happens after you pass away. It is also about protecting yourself while you are alive.
Without financial and medical powers of attorney:
- Loved ones may not be able to help manage your finances;
- Medical decisions may be delayed;
- Court involvement may be required during a crisis; and
- Protection of assets for Medicaid planning may not be possible.
Powers of attorney are some of the most important and overlooked documents in an estate plan.
Mistake #4: Not Reviewing Beneficiary Designations
Beneficiary designations control many assets, including life insurance policies, retirement accounts, pensions, and some bank accounts.
These designations override your Will or Trust. If they are outdated, assets may go to someone you no longer intend to benefit. Reviewing beneficiary designations regularly, especially after major life changes, is essential.
Mistake #5: Waiting Too Long to Plan for Long-Term Care
Another common mistake is waiting until a health crisis occurs to think about long-term care or Medicaid planning.
Planning early preserves more options, reduces financial strain, and helps families avoid rushed decisions.
Waiting too long often means fewer choices and more stress for loved ones.
Mistake #6: Never Updating Your Estate Plan
An estate plan is not a "set it and forget it" document.
When life changes happen, your estate plan should change too. These changes may include marriage, divorce, having children, or moving. Outdated documents can cause just as many problems as having no plan at all.
Most Estate Planning Mistakes Are Preventable
The most important takeaway is this: most estate planning mistakes are preventable.
Estate planning does not have to be perfect. It just needs to be thoughtful, clear, and up to date. Regular reviews and informed guidance can make all the difference.
Take the Next Step
If you are unsure whether your estate plan is complete, current, or appropriate for your life today, now is a great time to review your options.
At Fries Legal Services, my focus is simple: creating clear plans for life, legacy, and care. That means helping Michigan individuals and families understand where estate plans often go wrong and how to fix those issues before they cause stress or conflict.
