Six estate planning mistakes UK families make
The six mistakes that surface after a death or a care bill are ordinary ones: mirror wills treated as a promise, a life policy outside a trust, children on the deeds, a joint account instead of an attorney, planning too late, and no plan for the wait for probate.
The short answer
- Mirror wills are not a contract. The survivor can change their will unless a trust in the first will ring-fenced that share.
- A life policy paid to a named person cannot be rewritten by your will. The insurer’s trust form, often free, is the fix.
- Adding a child to the deeds makes them a co-owner, exposed to their divorce or bankruptcy, and may be ignored for inheritance tax and care fees.
- A lasting power of attorney only works if it is made while you have capacity. After that the route is a slower, costlier deputyship application.
- Change the ownership and write the will trust while everyone is well. A transfer made once care is foreseeable can be treated as deprivation of assets.
What's on this page
The short videos say “six things I would never do.” The useful version is the six mistakes that turn up in ordinary estates, after it is too late to fix them. None of them require a large portfolio. A house, a life policy and a bank account are enough.
Mistake 1: A mirror will and the assumption it is a promise#
David dies at 67. His will left everything to his wife, Linda, and then to their son. Linda remarries at 72. Her new will leaves the house to her new husband. The son finds out at the funeral.
Mirror wills are two matching documents. They are not a contract. After the first death the survivor owns what they inherited and can change their will, unless a trust in the first will already ring-fenced that share.
The fix is a life interest in the will, not a stiff letter. Linda can stay in the house. David’s share is preserved for their son.
Mistake 2: The life policy form filled in at the kitchen table#
A £150,000 policy “to my spouse” feels tidy. On death the insurer may still want a grant, and the money can swell the estate or land as a lump sum with no protection from a later divorce or care assessment.
The fix is the insurer’s own trust form, completed while you are healthy. It is often free. Do it before you compare will-writing prices. A will cannot rewrite a policy that already pays to a named person.
Mistake 3: Children added to the deeds “for safety”#
A father adds his daughter to the Land Registry title so that “it won’t be a problem later.” He has made her a co-owner.
Her ex-partner’s solicitor can ask about that equity in a divorce. His bankruptcy can reach it. If the father still lives there, inheritance tax may ignore the gift. If he needs care, the council may ignore it too. He has given away control and kept the risk.
Mistake 4: A child on the current account instead of an attorney#
Banks are awkward about third-party access. Families respond by making an account joint. On death, the survivor often takes the balance by survivorship, which may not be what the will says. On incapacity, arguments start about whose money it was.
A property and financial affairs lasting power of attorney is the document that was missing. It only works if it was made in time. After capacity is lost, the route is a deputyship application to the Court of Protection, which is slower and more expensive.
Mistake 5: Waiting until the house feels “at risk”#
The useful time to change from joint tenants to tenants in common, and to write the will trust, is when nobody needs care and nobody is ill. A transfer made once a care need is foreseeable can be treated as deprivation of assets. The local authority does not have to prove you said the words “care fees” in the meeting.
Families who only call after a diagnosis have fewer clean options. NHS Continuing Healthcare, attendance allowance, and a deferred payment agreement are often more relevant at that point than a new trust.
Mistake 6: No plan for the gap between death and the grant#
Executors are surprised that the deceased’s bank will only release a small sum for the funeral, and that the house cannot be sold until probate. Direct debits fail. The survivor, who was not on the energy account, cannot sort it.
Anything that passes outside the estate shortens that gap: joint cash accounts you truly intend to share, life policies in trust, and a will trust that already knows who the trustees are. Tell the executors where the will is. A will in a drawer nobody can find is the same as no will for the first fortnight.
What “I would never leave them anything” actually means#
Some advisers say they would leave a spouse or child nothing in the will. That is a slogan. Read the next sentence. They mean they would not leave assets outright. The spouse and children are still the people who live in the house and benefit from the trust. The will leaves the assets to the trust, not to a stranger.
If a document really leaves your family nothing, that is a different and risky plan. Close relatives can bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975. Cutting someone out needs a reason, a letter of wishes, and advice. It is not a tax trick.
A Saturday-morning version of the fix#
- Find out how you own the home: joint tenants or tenants in common. The title register shows it.
- Book wills that include a trust if the survivor inheriting outright would be a problem.
- Phone the insurer and ask for the trust form.
- Make both lasting powers of attorney.
- Tell one sensible person where the documents are.
That is the whole of the “six things” list, done without giving the house away.
Related: six things not to do in your will, how to write a will, lasting power of attorney.
Want this checked for your own situation?
A regulated adviser can tell you in one conversation whether this applies to you. We can introduce you free of charge.
Free introduction · Regulated advisers only · We may be paid a referral fee, which never affects our guidance.
Frequently asked questions
What is the biggest estate planning mistake UK families make?
Assuming mirror wills protect the children. They do not bind the survivor, who inherits outright and can remarry or rewrite their will. A life interest trust in each will is what keeps the first partner’s share for the children.
What happens if someone loses capacity without a lasting power of attorney?
Nobody has automatic authority over their money, not even a spouse. The family has to apply to the Court of Protection to be appointed as a deputy, which is slower and more expensive than making a lasting power of attorney in advance.
Can I cut a family member out of my will?
You can in England and Wales, but close relatives and dependants can bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975. Cutting someone out needs a reason, a letter of wishes and advice.
How do I find out if we own our home as joint tenants or tenants in common?
Check the title register from HM Land Registry. If it carries a restriction saying no disposition by a sole proprietor can be registered, you own as tenants in common. If there is no such restriction, you are normally joint tenants, and the home passes to the survivor automatically, outside the will.
This is general information, not legal advice. Everyone's situation is different — speak to a qualified adviser before acting. KeepTheLot is an independent information service covering England & Wales. We are not a law firm.
Part of our guide to protecting your assets.