The 5 Most Common Gaps We See in Existing Estate Plans

Creating an estate plan is a vital step in protecting your family and your legacy. But having a plan doesn’t always mean you’re fully protected. Many families come to us thinking their estate plan is “done,” only for us to uncover gaps that could lead to confusion, unintended taxes, or even court involvement.

Over the years, we’ve noticed a pattern: the same issues come up again and again, even in plans created by well-meaning attorneys or using DIY tools. Here are the five most common gaps we see in existing estate plans—and why they matter.

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1. Beneficiary Designations Don’t Match the Plan

Your trust or will may be perfectly drafted, but if your life insurance, retirement accounts, or bank accounts list outdated beneficiaries, the plan won’t work as intended. These assets pass by contract, not by your trust or will.
Why this matters:

• Funds could bypass your trust entirely.
  
• Beneficiaries might receive unequal or unintended distributions.
  
• Old designations (like an ex-spouse or deceased relative) could still be on file.
  

Quick Fix: Review all beneficiary designations and ensure they align with your estate plan.

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2. Assets Aren’t Properly Titled

A trust only controls the assets that are titled in its name. We often see trusts that were never fully “funded,” leaving homes, bank accounts, or investment accounts outside the trust.
Why this matters:

• Assets outside the trust may go through probate.
  
• The plan may fail to avoid court costs or delays.
  

Quick Fix: Work with your attorney to confirm that your home deed, bank accounts, and investment accounts are properly titled to your trust.

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3. Outdated Decision-Makers

Powers of attorney, trustees, and healthcare agents need to reflect your current relationships and trusted individuals. Too often, we see plans with agents who have moved away, passed away, or are no longer the best fit.
Why this matters:

• In an emergency, the wrong person—or no one—may be available to act.
  
• Family disputes may arise if your decision-makers are unclear or outdated.
  

Quick Fix: Review your chosen agents every few years and update them when life changes.

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4. Plans That Don’t Address Incapacity

Estate planning isn’t just about what happens after you pass away. A truly effective plan addresses who can manage your finances and healthcare if you’re temporarily or permanently incapacitated.
Why this matters:

• Without clear instructions, your family may face court intervention (conservatorship/guardianship).
  
• Medical and financial decisions could be delayed or contested.
  

Quick Fix: Ensure your plan includes comprehensive powers of attorney, a healthcare directive, and clear instructions for incapacity.

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5. No Provisions for Changing Laws or Circumstances

Laws change. Families change. Tax rules, property rules, and Medi-Cal or Medicaid regulations can all shift. Many plans we review are technically “valid” but no longer optimal because they were drafted years ago without flexibility for new rules or family dynamics.
Why this matters:

• Tax opportunities may be lost.
  
• Your plan could unintentionally increase costs or create conflicts.
  

Quick Fix: Schedule a review every 3–5 years, or after major life or law changes, to keep your plan current and effective.

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Closing Thought: A Plan That Works When It’s Needed Most

An estate plan is more than a set of documents—it’s a blueprint for your family’s peace of mind. Even small gaps can cause big problems when the plan is put to the test. By closing these five common gaps, you can ensure your plan works the way you intended, when your family needs it most.

If you’re unsure whether your plan has these gaps, we can help you review it and make updates before it’s too late.