Pitfalls of “DIY” Estate Planning

In an age where one can find online help for just about any situation, it’s no surprise that some people have pondered the idea of trying to draft their own estate plan using an online service. However, before actually jumping in to “Do It Yourself”, there are reasons to consider the pros and cons of using an online service versus working with a licensed estate planning firm.

1. Fast Service – Online services may claim to have quick turnaround times. But if there’s one thing you don’t want to rush through, it’s the decision-making process behind your estate plan. Why are you doing what you are doing? Which type of plan (will based or trust based) is right for you?
2. Affordability – Online services are low cost when taken at face value. But that’s because you are supplying the labor and plugging your personal information into their pre-made forms. Forms that may be outdated based on your state’s current laws. There may also be hidden fees associated with online services.
3. No Expertise – Online services may not have qualified legal experts available to answer any questions that you may have along the way. They exist to churn out documents as quickly as possible so they can move on to the next customer.
4. No Guarantees – If a licensed attorney is not reviewing and finalizing the documents, how do you know that it was prepared correctly? If a document is prepared incorrectly, it’s your responsibility to correct it, not theirs. And then they can charge you for the “privilege” of doing the work again.
5. No Malpractice Insurance – In the event that negligence occurs in the preparation of your estate planning documents, there is no way to hold the online service liable. The documents are considered to be “self prepared”. Most online services disclaim all responsibility.
6. No Asset Protection – If your estate is complex, you may need to consider how to protect your assets from creditors, lawsuits, the effects of terminating a marriage or the effects of remarriage. Online services are not equipped to help you with developing strategies to minimize risk and protect your assets.
7. Probate Avoidance – Many people assume that having a will means their estate won’t go to probate. Online services may not provide additional information about the judicial process in your state. Working with a licensed attorney helps ensure that you are educated about the specific process in your state, the types of estate planning tools that can help you avoid probate, and can help you have the necessary conversations with the people you have chosen to carry out your final wishes.
8. Documents Are Not Executed Correctly – Online services don’t do a final check after documents are executed. Certain documents are required to be witnessed and/or notarized. Working with a licensed attorney ensures that your documents are double-checked for accuracy to make sure that your plan has been executed according to your state’s laws.
9. Lack of Understanding – Online services can provide estate plan documents but do they provide education and insight into what the documents actually say and how the documents are used? How do you know if your estate plan will actually fulfil your goals if you don’t understand what you just signed?

Call us today, so we can help you avoid these pitfalls. (847) 737-1800