As costs rise, many individuals are looking for ways to DIY… whatever “it” is. Maybe it’s putting down a new floor in your kitchen, or fixing a plumbing problem, or skipping your tax preparer and doing your own taxes. Initially, it may seem like a great way to save a few bucks. And sometimes it works out ok. But if not, you can always call in a professional to fix your mistakes. Worst case, you have a wonky kitchen floor, an ongoing plumbing leak, or you get a letter from the IRS saying you owe more than you thought. But doing your own estate planning usually doesn’t give you a chance to fix it; if you DIY your will, etc., when you die, your heirs may find out, too late, that you left them a hot mess that can’t be fixed.
Here are just a few scenarios where a DIY will or estate plan can turn out to be bad news for everyone.
Improper Execution Can Mean an Invalid Will (and bad news for your heirs). If your will isn’t executed exactly according to your state’s law, it could be declared invalid — meaning the court distributes your assets according to state intestacy laws instead of your wishes. No one can call in an estate planning attorney to fix this.
Assets That Don’t Pass Through the Will. You may or may not realize that assets like retirement accounts, life insurance policies, and more do not go through the will. No. They don’t. If your beneficiary designations are outdated, no matter what you say in your will, the forms take precedence.
Oops – You Forgot to Plan for Incapacity. You may think you’ve got it all covered with your will alone. You don’t. The will only kicks in after death. Without legal documents such as a financial power of attorney, a health care power of attorney, and a living will, you may leave yourself and your family in a lurch. Your family may even have to seek court guardianship if you become incapacitated — a costly and stressful process.
Did You Choose the Wrong Executor or Trustee? If you DIY your estate plan and name as your executor or trustee someone who lives out of state, has financial problems, doesn’t get along with your other heirs, or lacks the time or organizational skills to handle the role … well, you should just apologize now to your loved ones. They’re in for some real problems; problems you created as you tried to save a little money by DIYing your estate plan.
You thought it was a One & Done? Even if you DIY your will and it is legally valid, timing is everything. A legally valid but out-of-date will is sometimes worse than no will at all. When you work with an estate planning attorney, you have the opportunity to review the information and make updates periodically while ensuring it will be legally accepted. Life brings changes … marriages, divorces, babies, and more and your estate plan needs to keep up. (I offer my clients a complimentary review of their estate plan every three years to help ensure their hard-earned assets and loved ones are well-protected.)
I could go on; there is a host of problems that can arise from a DIY estate plan, and to be honest, it’s not worth the risk or savings. And unlike getting a professional in to fix a “DIY flooring disaster”, calling an estate planning attorney after the person has died is a lot like closing the barn door after the horse ran away. And while you won’t suffer the consequences, your loved ones will in a variety of ways. Perhaps some won’t receive the assets you had planned, others might spend a lot of money on attorney’s fees trying to set things right, and still others might receive assets you would never have given them.
When you consider there are no “do-overs,” it makes sense to work with an experienced estate planning attorney. Fix your own plumbing … do your own taxes, but don’t be your own estate planning attorney. It’s really not a good idea. Let’s talk about what your plan should include. I’ll help make sure your hard-earned assets and loved ones are protected.
Please call me at 513-399-7526 to schedule a meeting or begin by visiting my website at www.davidlefton.com