How to Avoid the Biggest Mistakes People Make With Their Wills

Natalie Hood is an advanced planning attorney with Northwestern Mutual.

If you die without a will, a court will ultimately decide how your assets will be distributed—and that may not be what you envisioned. And, if you don’t plan ahead, you could run the risk of not having your wishes carried out the way you’d like.

Having a well-written will is an important part of estate planning. When done right, this legal document can ensure your assets go where you’d like after your passing . By making these tough decisions in advance, you can help alleviate unnecessary stress for your loved ones during an emotional time. It is important to note, however, that a poorly crafted will can do the opposite by causing stress and confusion during an already difficult time for your family and friends.

Here are seven common mistakes to watch out for when crafting your last will and testament (and your estate plan at large).

1. Failing to keep your will up to date

The will you write today may not reflect your wishes 10 years from now. Ideally, you should update your will after major life events such as:

• Getting married or divorced
• Buying or selling a home
• Gaining an inheritance or other windfall
• Having a baby (as your will is the document in which you name guardians of any minor children you may leave behind at your death) or welcoming a new grandchild to the family.
• Becoming widowed or losing a loved one (especially if the loved one is a named beneficiary in your will).

If a beneficiary named in your will becomes disabled and is on certain government benefits you will likely want to discuss this fact with your estate planning attorney to address in your will as needed (in order to avoid jeopardizing such benefits as applicable). In fact, if any beneficiary of yours experiences a major life event or change (e.g., divorce, creditor issues, substance abuse issues, etc.) you may want to revisit how you have structured their inheritance with your estate planning attorney. It’s also good practice to periodically review your will to make sure it accounts for changes in your life and still aligns with your values. Examples include opening a new investment account, starting a successful business that needs to be addressed in your will, or experiencing a relationship change with a beneficiary (i.e., you would like to remove or add a certain beneficiary).

If you already review your finances and investments annually, consider making this a part of your annual financial check-in. Otherwise, taking a fresh look at your will every three to five years is a smart practice to employ.

2. Forgetting about taxes

Taxes can affect your legacy and the amount your beneficiaries inherit. Here are some important things to keep in mind when it comes to estate and inheritance taxes:

• The estate tax is a federal tax paid by a deceased person’s estate, before any inheritance is divided among the beneficiaries. The good news is that in 2026, the federal estate tax is only imposed on the portion of the estate’s value that exceeds the exemption amount of $15 million per individual. (Translation: Most estates will be off the hook when it comes to the federal estate tax.) However, 12 states and the District of Columbia charge an additional estate tax on the state level—and some of these state estate taxes have much lower thresholds for when an estate might owe tax.
• Inheritance tax is a state tax that you may be required to pay if you inherit assets. How much you owe will depend on where you live, the amount you inherit, and your relationship to the deceased person you inherit the assets from. Five states, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania currently charge an inheritance tax; Maryland also imposes a state estate tax. The tax rate could be as high as 16 percent in some cases, or even higher, at rates of 18 percent. For instance, some states, including Maryland, can assess penalties for failure to pay the inheritance tax in a timely manner. Keep in mind that some states will only tax the portion of an inheritance that exceeds a certain amount—and most states don’t have an inheritance tax at all. Make sure you understand the rules where you live.

3. Not appointing a trusted executor

When putting together a will, you’ll choose an executor, also known as a personal representative, to carry out your final wishes. The executor is tasked with jobs like:

• Reporting the death to creditors
• Contacting the appropriate government agencies to notify them of your passing
• Initiating the probate process, which is when a court validates the legitimacy of your will
• Assisting with funeral arrangements
• Maintaining the estate until all assets are distributed

The executor should be someone you trust who’s up for the job, is financially responsible, and organized. For instance, you could choose any of the following individuals who you feel would work well in this role based on the foregoing information:

• Your spouse
• Your adult child
• A sibling
• A family friend
• An attorney
• An accountant

You may need to update your executor if your original choice has passed away, moved out of the country, or become incapacitated. You should also consider naming a successor (or two) in case your chosen executor changes their mind when the time comes. In fact, prior to signing your will, it is a good idea to have a discussion with the person you plan to name as your executor (and even your successors) to ensure he or she is willing to serve in this role. It’s also possible to name co-executors—two or more people who will share the responsibility of executing your will. You can discuss the possibility of co-executors with your estate planning attorney.

4. Not coordinating beneficiaries

With savings vehicles like retirement accounts or products like life insurance, you can add a beneficiary that will receive your account or benefit when you pass away. Your beneficiaries might include family members, friends, or charitable organizations. Accounts that oftentimes require beneficiaries include, but are not limited to, the following:

• 401(k)s
• Individual retirement accounts (IRAs)
• Health savings accounts (HSAs)
• Life insurance policies

You should also check to see if your checking accounts, savings accounts, money market accounts, or non-retirement brokerage accounts have a payable on death (POD) or transfer on death (TOD) designation in place. This designation =allows you to name a beneficiary to receive the proceeds of these accounts upon your passing.

You should also consider naming contingent beneficiaries. These are named beneficiaries considered “next in line” after your primary beneficiaries. In the event that your primary beneficiary has died or simply cannot be located, your contingent beneficiaries would inherit the assets instead.

The beneficiaries that you specify on these accounts trump what’s in your will. Therefore, it’s important to discuss the provisions of your will and your beneficiary designations with your estate planning attorney . With any life change—especially adding members to your family or changing your marital status—you'll want to revisit your will and your designated beneficiaries on the above-named accounts.

5. Leaving assets unaccounted for

When writing or updating your will, make sure all major assets are accounted for. These include:

• Bank accounts
• Investment accounts
• Life insurance policies
• Real estate
• Vehicles
• Businesses
• Digital assets
• Jewelry
• Artwork
• Family heirlooms
• Collectibles

It is also important to add a residuary clause to your will. This provision explains what will happen to assets that are left over after specified gifts (also known as bequests) are distributed to the beneficiaries you designate. It’s another way to ensure that all your assets go where you’d like them to.

Another tool to consider is a personal property memorandum. This is an ancillary document that accompanies a will. This allows you to designate tangible personal property—such as jewelry, artwork, heirlooms, and sentimental items—to loved ones without updating your will. Most, but not all, states consider this a legally binding document and will incorporate this document into your will. Make sure you check with your state’s specific laws to see if your state allows such a document.

6. Only planning for after you’re gone

A will is just one part of a larger estate plan. And estate planning isn’t just something that covers what you want to happen after you’re gone—it can also set up safety nets for you during your lifetime as well. Here are some documents you’ll want to have in place for while you’re living:

• Power of attorney: This is a legal document that allows someone else to act on your behalf if you are unable to advocate for yourself. A financial power of attorney names someone to act on your behalf financially whereas a a health care power of attorney allows you to designate someone to make medical decisions on your behalf. You can name the same person to serve in both of these roles, or you can pick two different people that you trust to serve as your financial power of attorney and health care power of attorney, respectively. You will also want to consider who you would like to name as successors in each of these documents as well in the event your primary agent is unable to act.
• Revocable trust: You can place certain assets into a revocable trust (sometimes called a living trust) and serve as your own trustee. This type of trust can be modified at any time and gives you more control over how and when assets are distributed. A revocable trust is a great way to avoid probate.

7. Not communicating burial and funeral instructions in advance

Wills typically aren’t read until weeks after death. Be sure to communicate your burial and funeral wishes to your family while you’re alive and well. This can empower them to honor your life in a way that feels right to you. Some states have state forms in which you can lay out your specific burial and funeral preferences, or you can work with a funeral home in your area to preplan for your funeral.

An estate plan has many benefits—but its main goal is to allow for a smooth transition of wealth. Your Northwestern Mutual financial advisor will seek to understand what’s important to you and provide personalized guidance and help to ensure that your financial planning is coordinated with your will and overall estate plan.

This publication is not intended as legal or tax advice. This information was compiled by the advanced planning attorneys of The Northwestern Mutual Life Insurance Company. It is intended solely for the information and education of Northwestern Mutual Financial Representatives, their customers, and the legal and tax advisors of those customers. It must not be used as a basis for legal or tax advice, and is not intended to be used and cannot be used to avoid any penalties that may be imposed on a taxpayer. Northwestern Mutual and its Financial Representatives do not give legal or tax advice. Taxpayers should seek advice based on their particular circumstances from an independent tax advisor. Tax and other planning developments after the original date of publication may affect these discussions.