D-I-Why?!

The dangers of do-it-yourself estate planning.

After searching for many months, my wife and I found a house and are thrilled to close on our purchase in a few days. Its ideal location and size for our growing family comes with one significant catch: a list of necessary fixes and upgrades that’s already stretching over a mile in length! Our to-do list is split between tasks that I feel confident enough to take on myself and others that require a professional’s handiwork. Tearing out retro carpeting? Sure, I can handle that. Re-wiring an entire room? Let’s call an electrician, not 9-1-1! Most of the jobs we are hiring out end up on that side of the list because there are too many pitfalls to make saving a buck or two today worth the price of doing the job properly in the future.

Many of our clients find themselves working through a similar set of issues when a parent or other relative thought they could handle DIY-ing their own estate plan. Typing in “estate planning,” “last will and testament,” or related buzzwords in an internet search will bring up thousands of options ranging from free document templates to online services boasting deeply discounted plans. You can even find fill-in-the-blank wills in many retail stores. To the untrained eye, these may seem like simple solutions to simple problems. In truth, fashioning a plan that keeps loved ones out of court and maximizes your testamentary intentions almost always requires expert guidance.

If you are unsure about whether your DIY estate plan meets the statutory requirements to be recognized as valid, there is a fair chance it isn’t. Did your template or program walk you through tax consequences for beneficiaries? Did it give options for dealing with minors, disabled individuals, or beneficiaries that aren’t wise with their money? Do you know what steps to take with your assets to make probate unnecessary? Even in “simple” plans, those questions and many more require careful thought and guidance and cannot be adequately covered in a one-size-fits-all document.

Taking shortcuts in my home renovations will land me with a bigger bill to fix the problem down the road, and, at worst, may warrant a call to the fire department or emergency room! Similarly, a shortcut with your estate plan is a surefire way to force your loved ones into court to seek clarification and guidance. If you are interested in crafting an estate plan and avoiding the common pitfalls of DIY planning, schedule a consultation with Wright Beamer today.