No one knows exactly when they’ll leave this earth, but it’s a given that it will happen. Before it does, it’s important to have your financial affairs in order. Failing to make these arrangements in advance can leave your family with a mess to sort out, a possible financial burden and additional heartache on top of what they’re already experiencing.
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Here are four end-of-life money mistakes to avoid. Also explore several estate planning myths that may be stopping you from building generational wealth.
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No Proper Estate Plan in Place
Michael Rodriguez, certified financial planner (CFP) and owner of Equanimity Wealth, said one of the most common end-of-life money mistakes he sees involve clients who don’t have a proper estate plan in place — especially those that lack a will or trust.
Unfortunately, this mistake is all too common: About two-thirds of Americans do not have an estate plan, and procrastination seems to be a contributing factor. Caring’s 2025 Wills and Estate Planning Study found that 43% of people who don’t have a will admit they simply haven’t gotten around to it.
The consequences of not having all or part of an estate plan in place can include loved ones dealing with a costly and lengthy probate process while suffering unneeded stress, Rodriguez said.
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Not Updating Beneficiaries
A beneficiary is the person you designate to receive your worldly possessions, including assets.
Rodriguez explained that life changes, such as marriages, divorces and children, occur, but many people fail to update their documents to reflect their most-current wishes, which means their assets won’t go to the correct person.
“I’ve also seen clients unintentionally disinherit family members simply because they never reviewed their documents,” he said.
Taking the time to update beneficiaries will eliminate confusion and allow your wishes to be carried out without delay.
Failing To Plan for Incapacity
Although a will is important to have in place when you pass away, it’s not the only thing you need to plan for. Rodriguez said it’s also important to have a power of attorney or advanced healthcare directive in the event that you become incapacitated and can no longer make decisions. Failing to arrange for these types of legal documents can create financial and emotional dilemmas for your family.
Avoiding Conversations About Money
Even though you may not relish the idea of explaining to certain family members what will happen to your estate after you’re gone, it’s important to prepare them for the inevitable. Rodriguez explained that when families don’t know what to expect financially or emotionally after their loved one passes away, it can result in a conflict. Therefore, communicating your wishes in advance to everyone who might be affected is a must.
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Sources
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Equanimity Wealth, “Equanimity Wealth — Empowering Your Financial Journey.”
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LegalZoom, “Estate Planning Statistics to Read Before Writing Your Will.”
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Caring.com, “2025 Wills and Estate Planning Study.”
This article originally appeared on GOBankingRates.com: 4 End-of-Life Money Mistakes That Will Cost Your Family
