The Dangers of DIY Estate Planning: Why Working with an Attorney is Essential
While DIY estate planning might save a few bucks upfront, it often ends up costing families more in the long run due to administrative and tax issues. This is because DIY plans are not tailored to specific asset, tax, and family dynamics, nor do they contemplate the numerous contingencies that may arise. Each client’s situation is unique, with specific nuances that need to be addressed, even if not overly complex.
In my trust administration and probate practice, I’ve seen firsthand the dangers of DIY estate planning materialize. Significant issues and unnecessary complexities often arise from inadequately prepared documents, many of which require court involvement to resolve. This can be costly and time-consuming, far exceeding the initial savings from using an online platform. Working with an attorney from the beginning can help prevent these pitfalls and ensure a smoother process during a difficult time.
It’s simply impossible for online services to provide the counseling required for tailored estate planning that works as intended. Counseling is essential during all phases of the engagement, including design, drafting, execution, and funding. And as life and assets evolve after the estate plan is in place, it’s important to address questions and changes with an experienced firm that has a relationship with you and knows your situation. While some online services offer “attorney advice” for an additional fee, it’s typically from a different attorney each time who doesn’t know your situation or the estate plan already in place. And given the compensation these services offer their attorneys, the chances of getting quality advice are slim.
Another practical consideration: if things go awry and a mistake was made by an attorney, the heirs can pursue that attorney’s legal malpractice insurance to make them whole. This is not possible with an online service, which is not a law firm and does not carry legal malpractice insurance. And of course, with an online service, the heirs have nobody to turn for assistance when incapacity and death occur.
Frankly, the only situations where I can condone DIY estate planning are: 1) if the client simply can’t afford the fees an attorney charges and would otherwise have no estate plan; 2) a temporary will, POA, and healthcare directive needed immediately for health or travel reasons, with the intent of doing a full estate plan with an attorney when able; and 3) POA and healthcare directive for young adults with no assets who aren’t ready for a full estate plan.
FAQs
Q: How can working with an attorney benefit my estate planning process?
A: Working with an attorney ensures that your estate plan is tailored to your specific needs and family dynamics, preventing costly issues in the long run. An attorney can provide counseling throughout the process and address any questions or changes that may arise.
Q: Can online services provide the same level of assistance as an attorney?
A: Online services may offer “attorney advice” for an additional fee, but it is typically from a different attorney each time and may not provide the same level of personalized attention as working directly with an attorney.
Conclusion
While the idea of saving money by using online DIY estate planning services may be tempting, it is important to consider the long-term consequences and potential issues that may arise. Working with an experienced attorney ensures that your estate plan is tailored to your unique situation and can save your family time and money in the future. By investing in proper estate planning now, you can provide peace of mind for yourself and your loved ones.