Why You Should Think Twice Before Using DIY Wills and Trusts
As you navigate life, you've likely heard about a Will—a critical estate planning document that determines how your assets will be distributed after your death. You might already have a Will or know you should create one. Perhaps you've also encountered the term Trust and wondered how it differs from a Will. You may have even searched online for information on how to create your own Will or Trust using DIY estate planning tools.
In today's digital age, it's nearly impossible to avoid the numerous do-it-yourself (DIY) estate planning services available online. Websites like Legal Zoom, TrustandWill.com, and even financial experts like Dave Ramsey and Suze Orman offer DIY estate planning documents at a fraction of the cost of hiring an estate planning attorney. You can even download free estate planning forms to create your own Will or Trust. However, what these services often fail to mention are the potential risks and legal consequences that can arise from using DIY estate planning tools.
Legal Documents Are More Than Just Forms
Wills, Trusts, health care directives, and powers of attorney are all essential legal documents that carry significant implications. These documents are filled with legal jargon and nuanced language that may seem straightforward but can lead to unintended consequences if not fully understood. Estate planning attorneys spend years in college, law school, and passing rigorous exams to master the complexities of the law, legal terminology, and the potential ramifications of various legal decisions.
Even attorneys who don't specialize in estate planning can make mistakes when drafting Wills and Trusts. Without the expertise of a Personal Family Lawyer®—as we offer at our firm—there's a significant risk that your legal documents may fail to accomplish your goals if you become incapacitated or pass away. Despite this, many people are tempted by the promise of saving money by drafting legal documents on their own through online DIY services. But remember, just because it's cheaper doesn’t mean it's better.
A Cautionary Tale: When DIY Estate Planning Goes Wrong
To illustrate the risks of DIY estate planning, let’s examine a real-life example:
A woman, let’s call her Jane, passed away. Her second husband went to an estate planning attorney for advice on what to do next. Jane had received an inheritance from her first husband, John, and was very close to her adult children and grandchildren. She intended to leave them her inheritance but also wanted to provide for her second husband.
Jane, trying to be frugal, decided to create her own Trust after doing some research online. She learned that a Trust could help her family avoid probate—a costly and time-consuming court process—so she drafted her own Trust, thinking she was saving money and protecting her loved ones.
Unfortunately, Jane’s DIY Trust did the opposite of what she intended. Instead of benefiting her children and grandchildren, the Trust left everything to her second husband. Additionally, Jane’s Trust was governed by the laws of a different state, complicating any legal proceedings further. To make matters worse, she failed to properly transfer her house and other assets into the Trust, leaving her loved ones with a legal mess.
As a result, Jane’s family ended up in court, and the matter has dragged on for years, causing heartache, stress, and significant financial strain.
Avoiding Common Estate Planning Mistakes
Jane likely believed that she understood the documents she created and that she was making the best decision for her family. But Jane was mistaken, and her story serves as a cautionary tale for anyone considering DIY estate planning.
Had Jane worked with a qualified estate planning attorney, like a Personal Family Lawyer®, she could have ensured that her wishes were clearly outlined, her assets were properly protected, and her family was kept out of court and conflict. The cost of hiring an attorney would have been a small price to pay compared to the financial and emotional toll her family is now enduring.
The Right Way to Plan Your Estate
Your loved ones deserve the peace of mind that comes from knowing your estate is in order and that they won’t be left to navigate a legal quagmire during an already difficult time. Proper estate planning is one of the most meaningful gifts you can leave behind.
At our firm, we don’t just draft documents—we protect families. We take the time to understand your unique family dynamics and goals, working with you to create a comprehensive estate plan that prevents the stress, conflict, and chaos often associated with DIY documents.
If you’re ready to leave your family a legacy of love and peace of mind, we’re here to help. Schedule a complimentary 15-minute consultation with our office to learn more about how we can support you in creating an estate plan that truly reflects your wishes and safeguards your loved ones.
This article is a service of Savannah Law, LLC 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. You can begin by calling our office today, at 305.504.7822, to schedule a Life & Legacy Planning Session™.
*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.
