The Practical Planner — "Top Estate Planning Mistakes"
Date: November 18, 2025
Hosts: Thomas Kopelman (TK) & Dave Hodden (DH)
Episode Overview
In this episode of The Practical Planner, Thomas Kopelman and guest Dave Hodden dive deep into the most common and consequential estate planning mistakes they encounter as financial and legal professionals. Instead of rehashing the basics, they use real-life anecdotes and direct insights to help advisors recognize pitfalls, support clients at any stage, and modernize their estate practice. The conversation balances practical advice, cautionary tales, and industry-specific guidance with an easy, conversational tone—helpful for both professionals and families thinking about their own plans.
Key Discussion Points & Insights
1. The Biggest Mistake: Not Having an Estate Plan At All
- Procrastination and false confidence: Many think estate planning can wait, or that assets will automatically “go to my spouse or kids” without complications.
- Universal need: Estate planning is relevant for all adults, regardless of age, profession, or net worth.
- The state decides if you don’t:
"Everyone has an estate plan. But do you know who set up that estate plan for you? It'll be your state legislature. And do they have your best interest at heart?" — Dave Hodden [02:18]
- Guardianship for minors: Failing to plan means a judge, not parents, might appoint a child’s guardian.
- Heir’s age and asset control: Without a plan, state law may allow young heirs to access assets prematurely.
2. “DIY” Estate Planning Risks
- Avoiding professional help leads to costly errors: Clients often try to sidestep probate by gifting assets or retitling, overlooking cascading impacts.
- Case study:
"Sometimes you can't even fathom what is going to be the implications when you try to do it yourself...because you don't know what's going on with that child, you don't know if they have a spouse, you don't know if they have creditors." — Dave Hodden [07:00]
- Unexpected consequences: Inheritance lost to creditors; parents missing out on capital gains exclusions or step-up in basis when gifting real estate.
3. Poor or Missing Tax Planning
- Losing out on tax advantages:
"You need to do this tax planning and make sure that you're getting the step up in basis because that is a big tax savings tool." — Thomas Kopelman [08:27]
- Uncoordinated gifting can trigger higher taxes and missed opportunities, especially for long-held assets.
4. Failure to Name (and Update) Successor Fiduciaries
- One-and-done mentality:
"Estate planning is really in an area where you need to think, okay, what if this happens? But then what if this happens?" — Dave Hodden [09:01]
- Real-life fallout: Without contingencies, unexpected deaths can leave strangers (or estranged relatives) in charge.
- Layered planning: Advisors should push clients to think beyond just the first layer, to deeper contingencies.
5. Not Funding the Trust / Ignoring Beneficiary Designations
- Common disconnect: People pay for a trust, sign it, then forget to re-title accounts and assets.
- Consequences: One forgotten account or property can trigger probate.
- Beneficiary mismatch: Wills don't override beneficiary forms; failing to update can send assets to the wrong person (e.g., ex-spouse, parents).
- Quote:
"Not funding your estate plan is like just having a nice beautiful treasure chest...but there's nothing inside it." — Dave Hodden [11:54]
- Role of advisors:
"That's where the advisor should step in and we should be reviewing it to say, like, hey, that's not done. We need to get it done because we're working with them on a yearly basis." — Thomas Kopelman [12:46]
6. Not Setting Up Health Directives for Young Adults
- Important for college students and young adults—parents have no authority once a child turns 18.
- Document needed: Advanced healthcare directive.
7. Failing to Update Plans After Major Life Changes
- Life happens: Marriage, divorce, new children, moves across state lines, changes in assets.
- Digital asset oversight:
"It just wasn't a part of the estate planning process to include provisions for your Facebook account, your crypto assets, your digital accounts ... If you don't have a specific provision in there, then you're not going to be able to make it happen." — Dave Hodden [17:12]
8. Lack of Adequate Trust Design for Heirs
- Case study:
"No 18 to 22 year old should be given $900,000 to manage and pick investments on because they haven't gone through the pain...to realize, oh my gosh, I have no edge here." — Thomas Kopelman [19:29]
- Solution:
Structure trusts with age restrictions and/or co-trustees to protect young or inexperienced beneficiaries from major mistakes.
9. Neglecting Estate Tax Planning
- Federal and state issues: Clients may trigger taxes (especially in states with lower thresholds) by not realizing they're over a limit or missing gifting opportunities.
- Superfunding strategies (e.g., 529 plans) and yearly exempt gifting often go unused.
- State “cliffs”: Being just over a threshold can cause dramatic tax increases.
10. Weak or Incomplete Powers of Attorney
- Generic documentation isn't enough:
"We see things like with investment accounts, with IRAs, where custodians are rejecting powers of attorney because they don't say that the agent has the ability to change beneficiaries on the account." — Dave Hodden [22:09]
- Recommendation: Use comprehensive (“kitchen sink”) powers of attorney granting specific, explicit authorities.
Notable Quotes & Memorable Moments
- Estate planning procrastination:
"Everyone knows how important estate planning is...but then your next question is, what is estate planning?" — Thomas Kopelman [01:36]
- DIY planning pitfalls:
"You can't even fathom what is going to be the implications when you try to do it yourself and do things like put your child's name on a piece of property." — Dave Hodden [07:04]
- On forgotten trust funding:
"Not funding your estate plan is like...a treasure chest with nothing inside it." — Dave Hodden [11:54]
- On digital asset surprises:
"How is it possible that your estate plan doesn't need to change at all? ... digital asset planning. Because people weren't thinking about it." — Dave Hodden [16:55]
- Protecting young heirs:
"No 18 to 22 year old should be given $900,000 to manage...make sure you understand who your kids are, what age they'd be ready for things, and set up these kind of guidelines." — Thomas Kopelman [19:35]
Timestamps for Important Segments
- [01:11] — Why people put off estate planning (and why not having a plan is the biggest mistake)
- [05:03] — DIY estate planning stories and the risks of gifting property to children
- [07:27] — Tax pitfalls: missing step-up in basis, capital gains exclusions
- [08:41] — Importance of naming successor fiduciaries—and thinking through “what if” scenarios
- [10:42] — Mistake: Not funding trusts, and how a single “forgotten” asset can trigger probate
- [13:50] — Health directives for adult children (18+)
- [15:55] — Why updating after life changes is critical; digital assets as an emerging issue
- [19:49] — Giving heirs too much, too soon: the perils of easy windfalls and trusts with no age restrictions
- [21:17] — State and federal estate tax planning, gifting strategies
- [21:59] — Comprehensive powers of attorney: why details matter
Practical Takeaways for Advisors
- Emphasize with clients that estate planning is ongoing and dynamic, not a “set it and forget it” event.
- Review trust funding, titling, and beneficiary designations regularly.
- Encourage—including through hand-holding—completion of all steps after documents are signed.
- Push for comprehensive, detailed Powers of Attorney and Health Care Directives, especially for young adults.
- Advocate for regular reviews after major life milestones and keep plans current with digital asset provisions.
- Structure inheritances and trusts in a way that protects inexperienced heirs from mismanaging significant wealth.
For listeners: This episode is an actionable field guide to avoid the most common—and costly—estate planning mistakes, offering advisors talking points for client meetings and a reminder to look deeper than just the paperwork.