5 Common Mistakes Associated With DIY Estate Plans
Many Americans are becoming aware of the importance of creating or updating their estate planning documents. With the availability of online "do it yourself" (DIY) document creators, it may be tempting to draft your documents all on your own. There are many reasons why this is one project you should only undertake with the help of a professional.
What is a DIY estate plan?
A DIY estate plan is something that you “do yourself” without the advice of an estate planning attorney. Someone who DIYs their own legal documents could be:
A. Handwriting a “will” themselves.
B. Downloading a “fill in the blank” document that they got on the internet; or
C. Using an online document generator that asks pre-set questions.
Below are five common mistakes associated with DIY estate plans.
#1: DIY estate plans may not conform to the applicable law.
Forms found on the internet may claim to conform to your state's law, but this may not always be true. Each state determines the laws that apply to estate planning—and there can be wide variations in the law from state to state. Your DIY estate plan may not adequately account for them.
#2: A DIY estate plan could contain inaccurate, incomplete, or contradictory information.
If you attempt to create a will using an online questionnaire, you may select the wrong option or leave out vital information that could prevent your will from accomplishing your goals or insert additional information that could contradict other parts of the automated will.
#3: Your DIY estate plan may not account for changing life circumstances.
For example, if you create a will in which you leave everything to your two children, what happens if one dies before you? Will that child's share go entirely to their sibling—or will it go to the deceased child's offspring? What if one of your children accumulates a lot of debt? Is it okay with you if the money or property the indebted child inherits is vulnerable to claims of the child's creditors? Suppose your will states your daughter will receive the family home as her only inheritance. What happens if the house is sold before you die? Will she inherit nothing? An experienced estate planning attorney will help you think through potential changes and contingencies that could impact your estate plan.
#4: DIYers can easily make mistakes when executing a will.
Under the law, wills and other estate planning documents must meet specific requirements to be legally valid. For example, a will typically requires the signatures of two witnesses. Still, the laws of different states vary on the requirements for the witnesses' signatures to be valid. Some states require that the signing witnesses be present and in the same room when the will-maker signs the will. In other states, witnesses are not required to be in the same room when the will-maker signs the will, and they can even sign it later if the will-maker tells them their signature is valid.
Similarly, some states require only the signature of the person granting a power of attorney (principal) to be notarized for a valid power of attorney. In contrast, some states require the principal and agent (the person who will act on behalf of the grantor) signatures to be notarized. The number of witnesses required also varies by state. These requirements may also differ depending on the type of power of attorney (financial vs. medical) you are trying to execute. Seeking the help of an estate planning attorney assures that your intentions will not be defeated because of mistakes made during the execution of your documents.
#5: All assets might not be included in your estate plan.
Many people do not realize that a trust is frequently a better estate planning tool than a will. A trust avoids expensive, time-consuming, public court proceedings otherwise necessary to transfer your money and property to your heirs after you pass away.
An effective trust must be "funded" (i.e., transferring the title of your money and property into the name of the trust). If you do not fund your trust, your loved ones will still have to endure the probate process to finish what you started.
Regular meetings with an estate planning attorney will help ensure that your assets are accounted for and transferred to your trust throughout your lifetime.
We Can Help
A DIY estate plan can lead to a false sense of security because it may not achieve what you think it does. If your DIY estate plan is invalid, your property and money will go to heirs specified by state law—who may not be the people you would have chosen. An experienced estate planning attorney has the expertise and legal knowledge to help you design and create a comprehensive plan.
Call the Law Firm of Shandell C. George, PLLC today. Let us help provide you and your family with the peace of mind that comes from knowing that you have an estate plan that accomplishes your goals. We do not just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love.
