The $1.5 Million Mistake: How a Small Estate Planning Error Cost One Family Big
Imagine building a life over decades—growing businesses, accumulating wealth, doing everything you thought was right. Then, after your passing, your family learns they owe $1.5 million in taxes that could have been avoided with one simple detail.
That’s exactly what happened to the Rowland family in Ohio.
When Billy Rowland’s wife Fay died in 2016, her estate filed a tax return to preserve her unused federal estate tax exemption—standard procedure. But there was a critical omission: the return didn’t provide a breakdown of the value of each individual asset. It seemed minor at the time. But when Billy died in 2018, the IRS disqualified the exemption.
The result? A $1.5 million tax bill his children were left to pay—years after they thought everything was handled.
Why This Problem Is Becoming More Common
The Rowlands aren’t alone, and this kind of oversight is becoming more expensive by the year.
Under current law, individuals can pass up to $13.99 million tax-free in 2025. That increases to $15 million in 2026, and for married couples, it doubles—if they plan properly.
But here’s the catch: to use both spouses’ exemptions, the first spouse’s estate must file a complete and accurate return, even if no tax is due. If that filing is missed or incomplete? The surviving spouse loses access to the unused exemption—and the family faces a hefty tax bill.
And it’s not just ultra-wealthy families at risk. A rising business, an unexpected inheritance, or a policy change could easily push a modest estate into taxable territory. Estate tax laws fluctuate with political shifts, and what seems safe today could create serious exposure tomorrow.
The Real Problem: Planning That Doesn’t Work When It’s Needed
The real issue isn’t just about taxes. It’s about how most estate plans are built to check a box—not to protect a family.
In many cases, families sign documents and move on, assuming their plan will work when the time comes. But when the first spouse dies, grieving family members are suddenly responsible for decisions they don’t understand—facing filing deadlines and tax rules they never anticipated.
All too often, mistakes are made. And by the time anyone realizes something went wrong, it’s too late to fix it.
What happened to the Rowlands is a prime example. With the right guidance—someone reviewing the return, someone asking the right questions—it could have been avoided entirely.
Why Life & Legacy Planning® Prevents These Disasters
At Starsia Law, we take a proactive approach to estate planning that includes ongoing relationship, education, and strategic review—so nothing falls through the cracks.
Here’s what makes Life & Legacy Planning® different:
Your plan is reviewed regularly to reflect current laws, updated assets, and life changes.
We help you navigate complex legal requirements, including estate tax returns and exemption elections.
Your family is kept informed, so no one is left wondering what needs to happen when the time comes.
We don’t just draft documents. We stay with you and your family to make sure they work—when it matters most.
With our process, someone would have caught the missing details on Fay’s return. Someone would have guided the family through the IRS requirements. And that $1.5 million mistake? It never would’ve happened.
Protect What You’ve Built
The Rowlands’ experience is heartbreaking—but it’s not inevitable.
By creating a Life & Legacy Plan with our team, you don’t just document your wishes. You create a system that ensures your family gets the protection and support they need—while avoiding the missteps that cost other families dearly.
Don’t let a paperwork error ruin the legacy you’ve worked so hard to build.
👉 Schedule your complimentary 15-minute discovery call today, and let’s create a plan that works when your loved ones need it most.
This article is a service of Starsia Law, a Personal Family Lawyer® Firm. 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. That's why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.