10 Common Estate Planning Mistakes in Florida and How to Avoid Them

Estate planning protects loved ones and ensures wishes are carried out after death, but even well-intentioned individuals can make costly mistakes. Understanding these common pitfalls helps Florida residents create more effective estate plans while avoiding unnecessary complications for their families.

1. Failing to Create Any Estate Plan

The most serious mistake is having no estate plan at all. Without a will or trust, Florida’s intestacy laws determine how assets are distributed, which may not align with a person’s wishes. A widowed Canadian businesswoman died unexpectedly while a Florida resident. She left behind a sizable art collection valued at $200,000. With no will in place, the collection’s ownership had to be determined through a lengthy legal process, eventually resulting in the assets being split among several relatives she barely knew.

How to Avoid: Individuals should create at least a basic will and consider whether additional documents like trusts or advance directives would benefit their situation. Even a simple plan provides more control than leaving everything to state law.

2. Not Updating Estate Plans

Life changes constantly through marriages, divorces, births, deaths, and career changes. Estate plans created years ago may no longer reflect current circumstances or wishes. A common scenario involves long-term unmarried partners where all assets were titled in one person’s name. After a lifetime together, when one person in the couple died, everything passed to that person’s heirs at law rather than their partner.

How to Avoid: Estate plans should be reviewed every three to five years and immediately after major life events. Documents need updating to reflect births, divorces, deaths, relationships, financial situations, and personal wishes.

“Estate plans should be reviewed every three to five years and immediately after major life events.”

3. Improperly Modifying Legal Documents

Some people attempt to modify wills or other documents by crossing out sections and initialing changes. One gentleman crossed out a $35,000 bequest to a former romantic interest on his original will and scribbled an initial next to the change. However, this informal modification wasn’t legally sufficient, and the original person still received the money.

How to Avoid: Property owners should work with an attorney to properly modify estate planning documents through codicils, amendments, or new documents that meet Florida’s legal requirements.

4. Failure to Fund Trusts

Creating a trust is only the first step—assets must be transferred into the trust to gain its benefits. Many people establish trusts but never complete the funding process, leaving assets in their individual names and subject to probate. This defeats one of the primary purposes of trust-based planning.

How to Avoid: Trust creators should systematically transfer assets to their trust, including real estate, bank accounts, investment accounts, and business interests. Working with an attorney ensures proper retitling and addresses ongoing funding as new assets are acquired.

5. Neglecting Beneficiary Designations

Beneficiary designations on retirement accounts, life insurance policies, and other financial accounts override will provisions. Outdated designations can send assets to unintended recipients, such as ex-spouses or deceased individuals. These designations operate on a “last name standing” basis and may not align with overall estate plans.

How to Avoid: Account holders should regularly review and update all beneficiary designations. Naming trusts as beneficiaries ensures these assets are distributed according to comprehensive estate plans rather than outdated individual designations.

6. Using DIY Estate Planning Services

Online legal services and do-it-yourself estate planning tools may seem cost-effective, but they often create more problems than they solve. These generic forms cannot address individual circumstances, Florida-specific statutory requirements, or complex family situations that require customized solutions.

How to Avoid: Individuals should work with qualified Florida estate planning attorneys who understand state law and can tailor documents to specific needs. The cost of proper planning is typically far less than the expense of fixing problems later.

7. Improper Joint Ownership as Estate Planning

Some people add children’s names to bank accounts or property deeds thinking this will avoid probate. However, this creates serious risks including gift tax consequences, loss of control, exposure to the child’s creditors, and potential marital property issues if the child divorces.

How to Avoid: Property owners should understand the implications of joint ownership before adding anyone to accounts or property. Trust-based planning or proper beneficiary designations often provide safer alternatives.

8. Failing to Plan for Incapacity

Estate planning isn’t just about death—it should also address what happens if someone becomes unable to manage their affairs. Without proper incapacity planning, families may need to go through expensive and time-consuming guardianship proceedings to make decisions on behalf of incapacitated individuals.

How to Avoid: Estate plans should include healthcare surrogates, living wills, and durable powers of attorney. These documents allow trusted individuals to make medical and financial decisions when the principal cannot.

9. Not Coordinating Estate Plans with Asset Ownership

Estate planning involves more than just creating documents—it requires coordinating how assets are owned and titled. For example, Florida’s tenants by the entireties ownership provides creditor protection for married couples, but transferring these assets to a trust might eliminate this protection.

How to Avoid: Individuals should work with professionals who understand the interplay between estate planning documents and asset ownership structures. Informed decisions help determine when to fund trusts versus maintaining other forms of ownership.

10. Naming Inappropriate or Unprepared Fiduciaries

Choosing the wrong people to serve as personal representatives, trustees, or agents under powers of attorney can create serious problems. Some people choose individuals based on family relationships rather than qualifications, while others fail to discuss responsibilities with their chosen fiduciaries.

How to Avoid: Fiduciaries should be selected based on trustworthiness, competence, and availability rather than just family hierarchy. Discussing responsibilities with chosen individuals and naming alternates helps ensure proper administration. For complex estates, professional fiduciaries may prove more appropriate.

The Importance of Professional Guidance

Many estate planning mistakes stem from misunderstanding Florida law or failing to appreciate the complexity of coordinating multiple documents and strategies. Professional guidance helps ensure plans work as intended while avoiding common pitfalls that can create problems for families.

Experienced Florida estate planning attorneys help clients navigate state-specific requirements, coordinate various planning strategies, and update plans as circumstances change. While professional assistance involves upfront costs, it typically prevents far more expensive problems later.

South Florida Law

Estate planning mistakes can have serious consequences, but they’re largely preventable with proper planning and professional guidance. At South Florida Law, we typically start by assessing our client’s current situation and identifying potential problems, then we either create or update their estate plans.

We understand that estate planning is an ongoing process, not a one-time event. As such, we advise our clients to make regular reviews and updates to help ensure plans continue to protect families and achieve goals as circumstances evolve. 

If you’re ready to take steps to protect your loved ones’ futures reach out to us via our contact form or by calling (954) 900-8885.