Is DIY Estate Planning Right For You?

Chances are, you are probably familiar with at least a few of the popular names among the growing amount of software and websites offering ‘do-it-yourself’ estate planning documents including wills, living trusts, and power of attorney documents. These documents are produced via self-directed, fill-in-the-blank forms and usually boast extremely cheap price tags and vast time savings over the traditional attorney-driven model of preparing one’s estate documents. Many are pitched on television ads, or by celebrity financial planners and radio hosts as viable alternatives to collaborating with a lawyer to prepare a will or trust. On the surface, such products seem to make a lot of sense, promising “peace of mind” at a very affordable price. But can such peace of mind really be achieved for a few bucks and a half hour or so of your time? Let’s find out.

Know that anyone can have a complicated estate.

Before meeting with an estate planning attorney, many people would assume that their estate planning needs are simple, because they are not from their vantage point, “rich”. Frankly, I am not even a huge fan of the term ‘estate planning’ because for many it invokes images of butlers, private jets, and 4-car garages stuffed with Rolls Royces and Lamborghinis. Many of my clients share with me that they never really thought they needed ‘estate planning’ because they don’t view themselves as having an ‘estate’. Sadly, the myth that estate planning is only for the wealthy is one that continues to hurt millions of Americans, mainly through messy, expensive and in many cases totally unnecessary probate court experiences for the loved ones of those who pass on. My personal belief is that estate planning is not a one-size-fits-all proposal and that every adult over the age of 18 needs estate planning in some form or another.

Many proponents of diy estate planning offer that while a fill-in-the blank document may not be as comprehensive as one generated by an attorney, many people do not need anything more than the basic, general document that can be purchased through diy websites such as LegalZoom. Furthermore, even a rudimentary will is better than having nothing in place at all. While I would certainly debate the former, the latter point is generally true; having a diy estate plan is in most cases indeed better than nothing. For some, financial constraints may simply leave them with little option besides a DIY will or trust (typically between $50-$200). For others, how effective a self-directed estate plan will be for them really hinges on a couple questions, namely, “how simple is your estate?” and “how much are you willing to risk that you can nail the form filling that ultimately generates your will or trust?”

Let’s start with the first question, and consider how simple or complex an individual’s estate planning needs may be. As previously stated, many people believe that their needs are modest, but many factors can come into play other than money when preparing an estate plan. For example, is your marriage a blended union? Blended marriages can bring many intricacies and variables to the table that require far more than a generic form-will can hope to offer. Are you the parent or guardian of a child with special needs? Again, this is a situation that simply cannot be properly addressed through the creation of a fill-in-the-blank document. For those with larger estates, who are subject to estate tax issues, again, I can almost assure you that print-at-home documents will not address your very specific needs. By the way, don’t dismiss yourself from this category without considering any life insurance policies you may have purchased or obtained through work!

DIY Legal Documents: “Are you feelin’ lucky?”