Common Estate Planning Mistakes Wisconsin Residents Make

Estate planning is one of the most important steps you can take to protect your family, your assets, and your legacy. However, many Wisconsin residents make critical mistakes that can lead to unnecessary legal complications, financial losses, or unintended consequences for their loved ones. As an experienced Wisconsin estate planning attorney, I’ve seen firsthand how these missteps can cause problems down the road. Below are some of the most common estate planning mistakes I advise my clients to avoid.

1. Not Having an Estate Plan at All

One of the biggest mistakes people make is simply not having an estate plan in place. Many assume that estate planning is only for the wealthy or elderly, but the reality is that everyone—regardless of age or financial status—should have a plan. Without one, Wisconsin’s intestacy laws will determine how your assets are distributed, which may not align with your wishes.

2. Failing to Update Your Estate Plan

Life changes, and so should your estate plan. Major life events such as marriage, divorce, having children, receiving an inheritance, or moving to Wisconsin from another state can impact your existing plan. If your estate plan isn’t up to date, it may not reflect your current wishes or comply with Wisconsin laws.

3. Not Naming a Guardian for Minor Children

For parents of minor children, naming a guardian in your will is one of the most critical decisions you can make. If you don’t designate a guardian, the courts will decide who raises your children if something happens to you. This can lead to family disputes or an outcome you wouldn’t have chosen.

4. Overlooking Powers of Attorney

Estate planning isn’t just about distributing assets—it’s also about planning for incapacity. Many people fail to designate a durable power of attorney for finances or a healthcare power of attorney. Without these documents, your loved ones may have to go through a costly and time-consuming court process to make decisions on your behalf if you become incapacitated.

5. Thinking a Will Avoids Probate

A common misconception is that having a will means your estate will avoid probate. In Wisconsin, a will must go through probate, which can be a lengthy and costly process. Setting up a revocable living trust can help your family avoid probate and ensure a smoother transfer of assets.

6. Not Properly Funding a Trust

Creating a trust is an excellent estate planning tool, but it only works if you properly transfer your assets into it. Many people set up a trust but fail to retitle their assets, such as real estate, bank accounts, or investment accounts, under the trust’s name. This oversight can lead to probate and defeat the purpose of having a trust in the first place.

7. Naming the Wrong Beneficiaries

Outdated or incorrect beneficiary designations on retirement accounts, life insurance policies, or bank accounts can lead to unintended outcomes. I always advise clients to review their beneficiary designations regularly to ensure they align with their overall estate plan.

8. DIY Estate Planning

With so many online tools available, it’s tempting to create an estate plan on your own. However, Wisconsin has specific laws that govern estate planning documents, and a DIY plan can lead to costly mistakes, disputes, or even invalid documents. Working with an experienced estate planning attorney ensures your plan is legally sound and tailored to your unique needs.

Take Action to Protect Your Future

Avoiding these common mistakes can save your family time, money, and stress. If you’re unsure about the state of your estate plan or need guidance in creating one, I’m here to help. Contact my office today for a consultation and let’s ensure your estate plan reflects your wishes and protects your loved ones.

(715) 390-0346