Unlimited internet resources have made DIY (do it yourself) a way to tackle projects and save money. While this may be fine for small home improvement projects, it is not recommended for creating a will or revocable trust. If you lack adequate legal knowledge, you may overlook important aspects and your will or revocable trust may not work as intended.
Online will kits contain generic templates that are quick, convenient and inexpensive to complete. However, consulting an experienced estate planning attorney reveals the shortcomings of generic templates. These shortcomings can create issues that may not be discovered until after you pass away and may fail to address all of your estate planning needs.
Pitfalls of DIY Wills
Most DIY wills do not take into consideration the following:
- State-specific laws: DIY wills may fail to follow specific legal requirements for your state and can create problems when the DIY will is offered for probate.
- Tax implications: DIY wills may fail to address applicable federal and state income taxes and/or federal estate taxes.
- Customization: Your types of assets and who you want to receive those assets are key components in how your estate plan is crafted. For some beneficiaries, it is appropriate for them to receive their share of your assets outright. For other beneficiaries, such as minors, incapacitated persons, or persons with spending or substance use disorder, it may be prudent to hold their share of your assets in trust. DIY platforms may not take a beneficiary’s unique circumstances into consideration or create the right type of trust for the beneficiary.
- Family dynamics: At your death, the combination of grief, loss and financial expectations of your beneficiaries can create contentious situations. DIY wills may fail to minimize the risk of conflicts between your fiduciary and your beneficiaries.
- Overlooked assets and contingent beneficiaries: DIY wills may fail to address all of your assets or provide for contingent beneficiaries to receive your assets.
An experienced estate planning attorney can ensure your estate plan comports with state law, addresses tax implications and is customized to address your unique situation, family dynamics, assets and contingent beneficiaries. The attorneys at Brown Law Firm have extensive experience addressing the problems and pitfalls of DIY wills and revocable trusts. In the end, the legal fees saved by creating DIY documents may result in exponentially higher legal fees at your death. If you would like assistance with creating a will in Colorado, contact our team at Brown Law Firm to start the conversation.
