Do-it-Yourself Estate Planning: What Could go Wrong?

The popularity of do-it-yourself (“DIY”) legal documents has surged in recent years. While online services may be less expensive, the adage that “you get what you pay for” often holds true. Basic online programs typically offer only the most rudimentary documents and as an individual’s situation becomes more complex, the cost of the necessary package increases. In some cases, the cost of the most comprehensive online services may rival that of engaging an attorney to do the work in the first place.

The interaction between a client and an estate planning attorney uncovers the unique needs of the client in the plan. Consider a married couple with children from prior relationships, each with different needs. One child may be facing bankruptcy or divorce, while another may be financially secure and not need an inheritance. Online estate plans rarely address those unusual situations or suggest solutions whereas an experienced estate planning attorney is trained to identify and address them.

Online services assume individuals know exactly what they want. Most people are not entirely sure what questions they should be asking and trying to address. The dialogue between an attorney and client often leads to additional deeper or completely unrelated issues that need to be addressed.

Setting aside the more esoteric parts of estate planning, sometimes using an online program can overlook the most basic of issues. For example:

1. If an estate plan specifies “my child” as beneficiary, what happens if that child predeceases the person creating the document? Does it pass on down the bloodline or does the gift lapse?
2. If the gift is to a child’s spouse, Mary, what happens if they are divorced by the time of death? Does Mary still receive the gift, or was the intention to give the gift to the spouse regardless of marital status?
3. Should a specific bequest of cash to a person bear interest? If so, from what date?
4. Is the gift appropriate? Many older individuals specify who receives their china but often, no one wants it. The better course, and one advocated by an attorney in discussion with the client, is to determine in advance who wants what. (There may be a taker for the china, too!)
5. When the time comes to sign the document, how many witnesses are required? Who can be a witness? Online services may not alert the creator of the document that the beneficiary should not be a witness, and having relatives serve as witnesses is generally a bad idea. It’s better to have unrelated, disinterested witnesses.

While there may be many individuals and circumstances where online estate planning services are suitable, most people will benefit from the personalized interaction with an attorney. This ensures an estate plan is specifically tailored to their goals and needs.

If you would like additional information regarding your estate plan or assistance in creating one, we encourage you to reach out to our Estate Planning attorneys who possess the expertise and insight to guide you through the process, ensuring your wishes are properly documented and your assets are distributed according to your preferences.