The Most Common Estate Planning Mistakes Families Make

One of the most common estate planning mistakes in Pennsylvania is not having a plan at all. If you die without a will, state law decides who inherits your property. The result often does not match what you would have chosen. For example, a surviving spouse does not automatically receive everything, and an unmarried partner receives nothing. Schaffranek & Foster helps families across Western Pennsylvania avoid these problems through estate planning and administration.

What Estate Planning Mistakes Cause the Most Damage?

Some mistakes can undo a plan that a family thought was complete. Many of them happen because a plan is not kept up to date. Common mistakes include:

• Dying without a will, or with a will that was not signed correctly
• Skipping documents for incapacity, such as a power of attorney
• Leaving outdated beneficiaries on accounts and insurance policies
• Creating a trust but never moving assets into it
• Not planning for Pennsylvania inheritance tax
• Never updating the plan after major life changes

An unfunded trust can be one of the costliest mistakes. Signing the trust is only the first step. Any assets that were never retitled into the trust’s name still go through probate, as if the trust did not exist.

What Pennsylvania Rules Catch People Off Guard?

Generic templates can leave gaps when they do not account for Pennsylvania law. Families may face problems such as:

• Inheritance Tax: Pennsylvania taxes what children and siblings inherit. A basic will usually does little to lower that tax on its own.
• Adding a Child to Your Deed: Putting an adult child on your home’s title to avoid probate can create gift tax issues and expose the house to your child’s creditors. It can also cause your child to lose a tax benefit called a stepped-up basis, which can mean a larger capital gains tax if the home is sold later.
• Older Powers of Attorney: Pennsylvania updated its power of attorney law in 2014, with changes taking effect in 2015. An older document may still be valid, but it may not include the protections and wording that banks expect today.

Adding a child to a deed can seem like a simple shortcut. However, once your child’s name is on the title, their divorce or bankruptcy could put your home at risk while you still live there.

What Happens Under Pennsylvania Intestacy Law?

If you die without a will and are married with children from a prior relationship, 20 Pa.C.S. § 2102 gives your spouse only half of your estate. The other half goes to those children. If a child is a minor, the Orphans’ Court must appoint a guardian to manage that child’s share. The Register of Wills in your county, such as Allegheny or Butler County, starts the estate administration process. This process can take longer and give your family less control than a plan you create in advance.

Modern Oversights Families Miss

Some newer problems come from how we live today, and older estate plans often do not address them. Common examples include:

• Passwords, cloud photos, and cryptocurrency with no written instructions for access
• Heirs who first learn about the plan at the funeral
• Online will templates that are not signed correctly or do not include a self-proving affidavit, which makes it easier to prove the will in court

Talking with your family about your plan is one of the easiest problems to fix. A short conversation now can help prevent disputes among your children later.

Get a Second Opinion on Your Estate Plan

Our attorneys can review your current plan and help you find and fix gaps before they cause problems. We work with families across Allegheny and Butler Counties who want their wishes to be followed. Call (412) 643-3848 or reach out to us online for a review.