Over the last four years, most of us have gotten used to doing things for ourselves that we would’ve never done before. Whether homeschooling, pet grooming, or baking, business closures and next-to-impossible scheduling necessitated our creativity. Many of these changes helped us save money, and that’s a good thing—but it has led many to do it themselves when they shouldn’t. Before using DIY estate planning strategies, consider these potential pitfalls.
Variations in State Laws
A holographic or handwritten and signed will seems like a simple creation. Whether jotted down on a notepad or written on a napkin, a holographic will may not be valid in every state. Some jurisdictions allow them if signed in front of witnesses, and others reserve them for active service members.
When handwritten wills are allowed, they must go through probate—which translates to additional money, time, and stress for bereaved families. By working with an Alabama estate planning attorney and making sure your will meets state requirements, you’ll protect your family after you’re gone.
No Universal Solution
Another risk of do-it-yourself estate planning is that there’s no one-size-fits-all solution. Estate plans are family- and situation-specific, and most DIY tools don’t allow these nuances. Filling in forms with dates and names sounds easy, but simplified plans may miss crucial details.
Similarly, clients’ circumstances can change, requiring updates and changes to documents. Modifications are much easier and have less margin for error when you work with legal advisors rather than making changes online.
The Need for Additional Documentation
Estate planning requires more than a written will. Powers of attorney and healthcare directives are essential, yet often omitted by DIY planners. What if your longtime partner needs to access your bank account while you’re incapacitated, or you can’t make decisions for yourself? A do-it-yourself will won’t cover these scenarios.
In some situations, clients need to set up trusts. Those with young children and complicated family dynamics, for instance, may consider setting up a trust to care for their children after they’re gone. With help from an estate planning lawyer, you can set up a comprehensive, clear plan that addresses your objectives and covers all bases.
Omitting Crucial Clauses
Leaving out vital clauses is one of the most significant risks of DIY estate planning. Unless you are a lawyer, you might not realize that you need certain things—or that they’re missing. Some issues, unfortunately, don’t appear until clients pass away and their families are left to deal with complex, costly, and inheritance-threatening matters. Protect your family and your legacy by working with an estate planning attorney.
Unclear Intent
When working with an estate planner, you can rely on them to steer you in the right direction. Handwritten wills, for instance, may be written in pencil or on low-quality paper—and there’s a great chance that they may not be legible by the time they’re needed. When it’s hard to read a document, its intent and meaning may become unclear.
When well crafted, estate documents eliminate the need for interpretation. Phrasing matters in probate court; if your statements are ambiguous, the court will parse them for you. Avoid misinterpretation and ensure your wishes are followed by working with an estate planning law firm.
Mistaken Assumptions and Legal Mistakes
A widely held misconception among do-it-yourself estate planners is that getting a notary’s stamp on a document makes it legal, but that’s not true. Notarization has one purpose: to prove your identity. If you wish to amend an existing will, it must go through processes that are more involved than a simple stamp.
Paying More Taxes Than Necessary
Without proper planning and legal advice, clients often pay more estate taxes than needed. Estates worth more than $13.61 million are subject to taxation on top of the tax heirs must pay to receive their inheritances.
If you’re like most people, you don’t want to burden family members at an already trying time. To reduce heirs’ tax liability and help them benefit from your legacy, set up individual trusts with help from an estate planning and trust attorney.
Not Following Directions
Every state has unique intestacy laws, which come into play when people pass away without a will. Most do-it-yourself estate planning websites and guides are not state-specific, and people can make big mistakes when they follow those procedures. Following a DIY guide may lead you to overlook critical requirements, leave out key elements, or do things completely wrong.
This is particularly true when tax planning and creating trusts. Every state’s laws are different, and those who are unaware of jurisdictional rules may encounter costly issues when administering their wills.
Is It Safe to Do Anything Yourself?
A few documents can be prepared without legal advice, with the advanced healthcare directive being at the top of the list. This document tells doctors what your wishes are when you can’t say it yourself, and it may be paired with a durable power of attorney that gives a friend or family member the authority to make financial and medical choices when you cannot.
Protect Your Will and Plan Your Estate Properly
These are just a few of the DIY estate planning risks we’ve noticed over our time in the legal field, and the impact of each of these circumstances can be significant. If your will isn’t constructed properly, your heirs may end up with a smaller inheritance, a bigger tax liability, or even worse, nothing at all.
A last will has a singular purpose: to give your family some relief after you pass away. Protect your loved ones and ensure they’re taken care of by planning your estate properly and under the guidance of a skilled, knowledgeable legal advisor.
The Kilgo Law Firm recommends a proactive stance on trust, will, and power of attorney creation. By avoiding these pitfalls and working with an estate planning attorney, you’ll ensure your wishes are followed, and your legacy is protected. Use our online form to request a consultation or call to schedule a meeting with one of our lawyers.