The world of estate planning has been transformed by the emergence of “digital wills” and online estate planning services. After all, we’ve become accustomed to handling various tasks online, from tax filing to shopping. But is estate planning really that simple? Are lawyers just using the same forms found on these DIY websites?
The inconvenient truth is that DIY or online estate planning documents might not provide the protection you expect for your loved ones.
In Part 1 of this series, we delved into the first three ways DIY estate plans can fail. Here, we will explore the remaining three.
Choosing the wrong executors or trustees: State laws stipulate specific criteria for individuals who can serve in crucial roles like executor, trustee or financial power of attorney. For example, some states mandate that the executor of your will must be either a family member or an in-law, and they may need to reside in your state. Additionally, your chosen executor might be required to obtain a bond (an insurance policy) in some states before they can serve. Obtaining a bond can be challenging for someone with a less-than-stellar credit score. If your selected executor cannot secure a bond, the court may appoint someone you wouldn’t want managing your assets or a third-party professional who could deplete your estate with hefty fees.
Lost and unclaimed assets: If your family doesn’t possess a comprehensive understanding of your assets, where to find them or how to access them, your property is at risk of being lost when you pass away. This could render your online will ineffective. Shockingly, more than $50 billion worth of unclaimed property currently languishes in various state Departments of Unclaimed Property across the U.S. because family members lost track of the assets. To prevent this, it’s crucial to maintain an up-to-date inventory of your assets. As your Personal Family Lawyer®, we not only assist in creating a comprehensive asset inventory but also ensure it remains regularly updated throughout your lifetime.
Unforeseen conflict between family members: Family dynamics can be intricate, especially in blended families where spouses have children from previous relationships. DIY services are ill-equipped to help you anticipate potential areas of conflict among your family members and plan ahead to avoid disputes. Even the most impeccably drafted documents may fall short in addressing these emotionally charged matters. Every day, we witness families torn apart due to inadequate estate planning, but we also see families brought closer together when these matters are handled correctly. Proactive estate planning can be an opportunity to strengthen family connections.
When it comes to estate planning, the quality of your documents is heavily reliant on your lawyer’s understanding of your family dynamics, your assets and how the law applies to your situation during your incapacity or after your passing. More often than not, you’ll need more than fill-in-the-blank documents to address the complexities adequately.
While the DIY approach might be apt for constructing a backyard deck, it’s one of the riskiest choices for estate planning. Are you truly willing to jeopardize your family’s well-being and wealth to save a few bucks? Choose wisely.
Send your questions to ccolan@colanlegal.com and use “Alpine Mountaineer Estate Planning” as the subject. We’ll answer your questions in our upcoming issues.
This article is provided by your local estate planning attorney, Corina Colan.
The Law Office of Corina I. Colan / (909) 265-3315 / ccolan@colanlegal.com / www.colanlegal.com
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