5 Estate Planning Mistakes Minnesota Families Make
- Mitch Zweber
- Jun 1
- 5 min read
Most Minnesota families know they need an estate plan. Yet many of the families we work with at 360 Financial — across Wayzata, Elk River, and the greater Twin Cities — arrive with plans that have not been updated in years, or with gaps they did not know existed.
Estate planning mistakes are rarely dramatic. They tend to be quiet oversights that create expensive, stressful problems for the people you care about most. Here are five of the most common ones we see, and how to address them.
Mitch Zweber is a financial professional focusing on portfolio management, retirement planning, estate planning, and goal funding. His approach to financial planning is holistic, addressing each client's needs, goals, and aspirations to build an individualized plan to pursue financial success. He believes in educating clients to empower them to make confident financial decisions.
1. Not Updating Beneficiary Designations After Life Changes
This is the most frequent estate planning oversight we encounter. Retirement accounts (401(k)s, IRAs), life insurance policies, and transfer-on-death accounts pass to the person named on the beneficiary form — regardless of what your will says.
What happens: A client gets divorced and updates their will to remove their ex-spouse. But the 401(k) beneficiary form still lists the former spouse. In most cases, the 401(k) goes to the ex-spouse because the beneficiary designation takes priority.
What to do: Review every beneficiary designation after any major life event — marriage, divorce, the birth of a child, or the death of a beneficiary. Make sure your designations align with your will, trust, and overall financial plan.
2. Relying on a Will Alone
A will is a foundational document, but it has limitations. In Minnesota, a will goes through
probate — a court-supervised process that is public, can take months, and involves legal fees.
What a trust can do: A revocable living trust allows certain assets to transfer to your
beneficiaries without going through probate. It also provides privacy (probate records are public) and can be especially helpful for families with properties in multiple states.
When a trust may make sense: Families with assets above Minnesota's $3 million estate tax threshold, families with minor children, business owners, and anyone who values privacy in asset distribution.
Not every family needs a trust. But relying solely on a will without understanding the alternatives can leave your family with unnecessary costs and delays.
3. Ignoring Digital Assets
If you manage bank accounts online, hold cryptocurrency, run a business with cloud-based tools, or have social media accounts with value (professional networks, content, intellectual property), these assets need to be part of your estate plan.
Common digital oversights:
No record of online account passwords or access instructions
Cryptocurrency wallets without documented recovery phrases
Business assets stored in cloud platforms (Google Drive, Dropbox, project management tools) that are inaccessible without login credentials
Subscription services that continue billing after death
What to do: Create a secure digital asset inventory. List every online account, its purpose, and how to access it. Include this inventory in your estate planning documents and inform your executor or trustee of its location.
4. Not Coordinating the Estate Plan With the Financial Plan
An estate plan built in isolation from your investment strategy, retirement plan, and tax approach often creates gaps. We see this frequently at 360 Financial when families have an estate attorney handling their will and trust, a separate advisor managing investments, and a CPA handling taxes — with no one coordinating between them.
Examples of coordination gaps:
A trust is created but investment accounts are never retitled into the trust, rendering it ineffective for those assets.
Roth conversions are completed without considering their impact on estate tax exposure.
Life insurance proceeds are included in the taxable estate because the policy ownership was not structured correctly.
What to do: Make sure your financial advisor, estate attorney, and CPA are communicating. At 360 Financial, our LifeWealth System™ integrates estate planning with your broader financial picture so nothing falls through the cracks.
5. Waiting Too Long to Start
Estate planning is not a retirement task. Any adult with children, assets, a business, or specific healthcare wishes should have a plan in place.
Why families delay:
"We don't have enough assets to worry about it."
"We're too young."
"It's too complicated and expensive."
The reality: A basic estate plan — will, healthcare directive, powers of attorney, and beneficiary review — is achievable for most families. The cost of not having one is almost always higher: court-appointed guardians for children, probate delays, family disputes, and assets distributed according to Minnesota's default intestacy laws rather than your wishes.
What to Do Next
If you recognize any of these mistakes in your own plan, you are not alone. Estate planning is not a one-time task. It is something that should be reviewed regularly, especially after major life events.
At 360 Financial, our fiduciary advisors in Wayzata and Elk River help families identify gaps, coordinate with estate attorneys, and integrate estate planning into their overall financial strategy. We call it our "sounding board" approach — we are available for questions at any stage.
Schedule a 15-minute conversation to review your estate plan with a 360 Financial advisor.
Disclosures:
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.
360 Financial and its representatives do not provide tax or legal advice. Please consult a qualified professional for guidance specific to your situation.
Investments involve risk, including potential loss of principal. Past performance is not indicative of future results.
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About the Author
Mitch Zweber
Mitch is a financial professional focusing on portfolio management, retirement planning, estate planning, and goal funding.His approach to financial planning is holistic, addressing each client's needs, goals, and aspirations to build an individualized plan to pursue financial success.
He believes in educating clients to empower them to make confident financial decisions. What excites Mitch ost about his job is meeting new clients and contributing to their pursuit of financial success.
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At 360 Financial, our clients come first. You deserve personalized attention. You’ll be happier and more confident in your financial future when you have an advisor who always puts your needs and best interest first. Schedule a 15-minute introductory call with a 360 financial advisor to see how we can help with your retirement, succession, tax, and estate planning.
About 360 Financial
360 Financial is an independent wealth management firm with a team of specialized financial advisors and financial planners. As fiduciaries, 360 Financial’s advisors provide services to business owners, entrepreneurs, and professionals. We help investors with sudden wealth, retirement planning, tax planning, estate planning, and business financial planning.
Headquartered in Minnesota, we serve investors across the US with online and in-person wealth management and financial planning services.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Investing involves risk including loss of principal. No strategy assures success or protects against loss.
This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
A Roth IRA conversion—sometimes called a backdoor Roth strategy—is a way to contribute to a Roth IRA when income exceeds standard limits. The converted amount is treated as taxable income and may affect your tax bracket. Federal, state, and local taxes may apply. If you’re required to take a minimum distribution in the year of conversion, it must be completed before converting.
To qualify for tax-free withdrawals, you must generally be age 59½ and hold the converted funds in the Roth IRA for at least five years. Each conversion has its own five-year period, and early withdrawals may be subject to a 10% penalty unless an exception applies. Income limits still apply for future direct Roth IRA contributions
