7 Estate Planning Mistakes Iowa Families Make (and How to Avoid Them)

Most people know they should have an estate plan. But knowing and doing are two different things — and even families who take the step of creating a will or trust can end up with gaps that cause real problems down the road.

After TODO_LISA years of helping Iowa families with estate planning, I have seen the same mistakes come up again and again. The good news is that every one of them is fixable. Here is what to watch for.

1. Waiting Until “the Right Time”

This is the most common mistake, and it is the most dangerous. There is no perfect moment to create an estate plan. Life does not send a warning before a car accident, a stroke, or a sudden diagnosis.

If you are over 18, you need at least a basic estate plan — a will, a durable power of attorney, and a healthcare directive. If you have children, property, or any assets you care about, the urgency goes up from there.

What to do instead: Start now. An imperfect plan that exists today is better than a perfect plan you never get around to making. You can always update it later as your life changes.

2. Relying on a Will Alone

A will is essential, but it does not cover everything. In Iowa, a will must go through probate — a court-supervised process that can take months and becomes part of the public record. For many families, that delay and lack of privacy creates real hardship.

Assets held in a revocable living trust, by contrast, pass to your beneficiaries without going through probate. Joint tenancy, payable-on-death designations, and beneficiary designations on retirement accounts also bypass probate entirely.

A will is the foundation, but it works best as part of a larger plan that includes these other tools.

What to do instead: Talk with an attorney about whether a trust makes sense for your situation. Not everyone needs one, but everyone should understand the option. A good estate plan uses multiple tools working together.

3. Forgetting to Update Beneficiary Designations

Here is something that surprises many people: beneficiary designations on life insurance policies, retirement accounts (IRAs, 401(k)s), and bank accounts override your will.

That means if you named your ex-spouse as the beneficiary on your life insurance 15 years ago and never changed it, that policy goes to your ex — no matter what your will says.

In Iowa, divorce does revoke certain beneficiary designations under Iowa Code chapter 598, but not all of them, and not in every situation. The safest approach is to review and update every designation yourself.

What to do instead: Make a list of every account that has a beneficiary designation. Review them at least every two to three years, and always after a major life event — marriage, divorce, the birth of a child, or the death of a beneficiary.

4. Not Having a Power of Attorney

A will only takes effect after you die. But what happens if you are alive but unable to make decisions — after a stroke, a serious accident, or a dementia diagnosis?

Without a durable power of attorney, your family may need to go to court and petition for a conservatorship just to pay your bills or manage your property. That process is expensive, time-consuming, and stressful during an already difficult time.

A durable power of attorney lets you choose someone you trust to handle your financial affairs if you cannot do it yourself. A healthcare power of attorney does the same for medical decisions.

What to do instead: Include both a financial power of attorney and a healthcare power of attorney in your estate plan. Choose someone you trust completely, and have a conversation with that person about your wishes before the need arises.

5. Naming the Wrong Person as Executor or Trustee

Being named executor or trustee is not an honor — it is a job. The person you choose will need to manage assets, pay debts, file tax returns, communicate with beneficiaries, and potentially navigate family conflicts.

Choosing someone based on family hierarchy (the oldest child, for example) rather than actual ability often leads to problems. The best executor is organized, responsible, good with money, and willing to ask for help when they need it.

What to do instead: Think honestly about who is best suited for the role, not who would be most offended if they were not chosen. You can also name a professional fiduciary or a corporate trustee if no family member is a good fit. And always name at least one backup.

6. Leaving Out the Conversation

Even a well-drafted estate plan can cause confusion and conflict if your family does not know it exists — or does not understand your reasoning.

I have seen families torn apart not by what the plan said, but by what they assumed it meant. When one child receives more than another, or when a family home is left to one sibling instead of being split equally, the “why” matters enormously.

What to do instead: Have a conversation with your family about the big-picture decisions in your plan. You do not need to share every detail, but letting people know where your documents are stored, who your attorney is, and the general shape of your wishes can prevent misunderstandings and hard feelings later.

7. Using a Generic Online Template Without Legal Review

Online legal document services are better than nothing — but only slightly. Iowa has specific requirements for wills (two witnesses, for example, under Iowa Code section 633A.2302), trusts, and powers of attorney that a generic template may not satisfy.

More importantly, a template cannot ask you the questions that matter. It cannot tell you that your plan has a gap, that your beneficiary designations conflict with your will, or that your power of attorney language is too narrow for your situation.

What to do instead: If you have already used an online template, bring it to an attorney for review. It may be fine — or it may need significant changes. Either way, you will know for certain that your plan actually does what you think it does.

The Bottom Line

Estate planning is not about paperwork. It is about making sure the people you love are taken care of when you are not able to do it yourself. The mistakes on this list are common, but they are also avoidable.

If you are an Iowa family thinking about estate planning — or if you already have a plan and want to make sure it still works — I am happy to take a look. No pressure, no judgment. Just honest guidance about where you stand and what you might want to change.

---

This article is for general informational purposes only and does not constitute legal advice. Every family’s situation is different. If you have specific questions about your estate plan, please contact Lisa directly to discuss your circumstances.