Imagine this: you and your spouse spend years building a business, saving money, and creating a secure life for your family. You think you’ve done everything right by putting an estate plan in place. Then tragedy strikes, and because of one paperwork error, your children end up owing $1.5 million in taxes they should never have had to pay.
This isn’t a “what if” story – it’s exactly what happened to the Rowland family in Ohio. Their experience shows how one small estate planning mistake can devastate a family’s financial future. Let’s look at what went wrong, why mistakes like this are becoming more common, and how you can prevent it from happening to your family.
How “Good Enough” Planning Became a Nightmare
Billy Rowland spent decades building businesses in Ohio – trucking, real estate, banking, and more. He was successful, community-minded, and seemed to have his financial affairs in order.
When his wife Fay passed away in 2016, her estate filed a required tax return. This return was meant to preserve Fay’s unused estate tax exemption so Billy could use it later. On the surface, everything looked fine: the return included the estate’s total value and listed its assets.
But there was one critical problem: the return didn’t list the specific value of each asset.
That small oversight cost the Rowland family dearly. When Billy died in 2018, the IRS ruled that Fay’s estate return was incomplete. As a result, Billy’s estate lost access to her $3.7 million unused exemption. Without it, his $26 million estate faced a massive tax bill – $1.5 million that could have been avoided with proper planning.
To make matters worse, the IRS didn’t flag the error until 2021, years after Billy’s death, when it was far too late to fix.
Why This Problem Is Growing
You may think this was an unusual case, but unfortunately, it’s not. Tax law changes are making mistakes like this both more likely and far more costly.
Here’s why:
- In 2025, each person can leave up to $13.99 million tax-free to their heirs. In 2026, that amount rises to $15 million per person.
- For married couples, that means a combined exemption of about $30 million – but only if the first spouse’s estate files the correct tax return, even if they weren’t required to.
- If that return is incomplete or missed, the surviving spouse permanently loses the deceased spouse’s exemption.
With estate tax rates at 40%, losing a $15 million exemption could mean millions in unnecessary taxes. Families may even have to sell businesses, homes, or other meaningful assets just to pay the bill.
And the issue isn’t just for the ultra-wealthy. Your estate may grow through investments, inheritances, or business success. Plus, tax laws change often. What feels “safe” today may push your estate into taxable territory tomorrow.
The Real Problem With Most Estate Plans
The Rowland family’s story highlights a bigger issue: too many people treat estate planning as a one-time transaction.
Here’s the typical scenario: you hire a lawyer, draft a will or trust, maybe update your beneficiary forms, and then put the documents in a drawer. Years pass. Life changes. Laws shift. Assets grow. But your plan stays the same.
When the time comes, your family – often grieving and overwhelmed – has to deal with complex tax and legal rules they don’t understand. Mistakes get made, deadlines get missed, and your careful planning falls apart.
This happens because traditional estate planning focuses on documents, not on relationships or long-term support.
A Better Way: Life & Legacy Planning
This is exactly why my Life & Legacy Planning process is different. It’s not about producing a binder of documents – it’s about building a living plan that works when your family needs it most.
Here’s how:
- Ongoing Reviews: Your plan is regularly updated as your life, family, and assets change. Nothing gets left behind or forgotten.
- Tax Strategy: If you’re married or have significant assets, I help you ensure all tax filings (like portability elections) are handled properly so nothing falls through the cracks.
- Family Communication: I guide you in making sure your loved ones understand your plan, so they aren’t blindsided later.
- Trusted Support: I’m not just here to draft documents – I’m here for your family when it matters most, making sure your plan works and your wishes are carried out.
If Fay Rowland’s estate had been handled this way, the $1.5 million mistake could have been avoided.
Protecting Your Family’s Future
The Rowland family’s story is a powerful reminder that in estate planning, small details can have enormous consequences. A missing line item cost them $1.5 million.
Your family deserves better. With proper planning and ongoing guidance, you can make sure every dollar of what you’ve worked for goes where you want it to go – not to unnecessary taxes, court costs, or government agencies.
As an attorney, I help families build plans that not only protect assets but also preserve family relationships and avoid costly mistakes.
Don’t let years of hard work and saving be undone by a technical error. With the right Life & Legacy Plan, you’ll have peace of mind knowing your legacy is secure and your loved ones will be cared for exactly as you intend.
At Cheever Law, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.