By Pascale Hansen

Most families don’t lose wealth because of a single bad investment.

They lose it quietly, gradually, and often invisibly — because of poor or outdated estate planning.

Estate planning isn’t just about drafting a will. It’s about creating a coordinated strategy that protects your assets, minimizes taxes, and preserves family harmony.

Yet even affluent families and successful business owners fall into the same traps.

Here are the most common estate planning mistakes that can quietly destroy family wealth — and what to do instead.

1. No Will (or an Outdated Will)

Life changes fast. Marriage. Divorce. New children or grandchildren. Buying property. Selling businesses. Building significant net worth.

If your will doesn’t reflect your current reality, it may distribute assets in ways you never intended.

An outdated will can:

• Leave assets to the wrong people

• Exclude important beneficiaries

• Appoint inappropriate executors or guardians

• Trigger unnecessary legal battles

A will should be reviewed every few years and after any major life or financial change.

2. Ignoring Future Tax Exposure

Taxes are often the single biggest threat to estate value.

Common overlooked tax issues include:

• Capital gains tax on real estate, investments, and private company shares

• Probate fees

• Corporate taxes triggered at death

• Double taxation on certain assets

Without proactive planning, a significant portion of an estate can be lost to taxes before heirs receive anything.

Good estate planning isn’t about avoiding tax illegally — it’s about using legitimate strategies to minimize it.

3. Beneficiary Designations Not Coordinated with the Will

Many assets pass outside the will, including:

• Life insurance policies

• RRSPs and RRIFs

• TFSAs

• Pension plans

If beneficiary designations aren’t aligned with your will and overall strategy, you can unintentionally:

• Disinherit someone

• Create unequal distributions

• Trigger unnecessary tax

• Override carefully written estate instructions

Everything must work together as one integrated plan.

4. No Plan for a Private Company or Professional Corporation

Business owners face unique risks.

If you own a company, your estate plan must answer:

• Who takes control at death?

• Who ultimately owns the shares?

• Is there a buy-sell agreement?

• How is a buyout funded?

• How will taxes be handled?

Without clear answers, families often face disputes, frozen operations, forced sales, or litigation.

Your business succession plan is a core part of your estate plan — not a separate issue.

5. Treating Estate Planning as a One-Time Task

Estate planning is not “set it and forget it.” As your wealth grows, your strategy must evolve.

A plan that worked when your net worth was $1 million may be dangerously inadequate at $5 million or $10 million.

Your estate plan should be reviewed regularly to ensure it still aligns with:

• Current asset values

• Family dynamics

• Tax rules

• Business structure

• Long-term objectives

Static plans slowly become broken plans.

6. No Communication with Heirs

Silence breeds confusion. Confusion breeds resentment. Resentment breeds lawsuits.

When heirs don’t understand your intentions, even well-designed plans can lead to conflict.

You don’t need to share every dollar amount — but sharing your values, goals, and general intentions can dramatically reduce future disputes.

Clear communication is one of the most powerful estate planning tools available.

The Real Purpose of Estate Planning

Estate planning isn’t just about transferring assets.

It’s about:

• Preserving family harmony

• Maintaining control

• Reducing tax erosion

• Protecting your life’s work

• Creating a lasting legacy

A strong estate plan turns wealth into a tool for stability and opportunity — not division.

Final Thought

If you’re a business owner or high-income professional and haven’t reviewed your estate plan in the last 2–3 years, now is the time.

Your wealth deserves more than chance. And your family deserves clarity.

Pascale Hansen is the Founder, CEO, and Financial Strategist at Zada.

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