Over 40% of Americans spend their lives without even considering an estate plan. The main reason for this ignorant behavior are some fears and misconceptions. Firstly, people do not want to think about death and what comes after that for their loved ones. Secondly, it is believed that estate planning is only meant for those having an abundance of riches. Moreover, people who realize the importance of estate planning often choose the DIY approach. They do not want to work with an attorney because they view it as an unnecessary expense. In reality, they are unknowingly creating problems for their family in the future (after their demise).
Many people have used online tools and tutorials to create their own Last Will and even some advanced estate planning documents, like powers of attorney and living trusts. The DIY method seems simple, fast, cheap, and effective; unfortunately, that is just a false impression.
What makes DIY Estate Planning a Bad Idea?
DIY estate planning involves usage of free online resources, which are neither specific nor reliable. The "one size for all" concept is problematic in this case because an estate plan should be tailored to your unique needs and circumstances. The generic documents you obtain from an uncertified provider could be invalid in your state or incompatible with the structure of your estate. The familial and financial conditions of every individual are not the same. The cookie cutter estate plan often proves to be a hotbed of irreparable or costly mistakes.
A DIY estate plan could work for someone who is fairly familiar with local laws and owns a limited estate. The number of assets you have in your name and the length of the list of your heirs/beneficiaries determines the complexity of your estate plan. For instance, if your property is worth millions, you have married multiple times, and have children from each marriage, the DIY approach would be a huge risk. You should definitely work with Estate Planning Attorney in Newport Beach, CA, from the start to avoid unfavorable consequences.
Common Issues with DIY Estate Planning
Many people overestimate their abilities and claim that they can handle legal matters without an expert’s intervention. They believe that doing everything by themselves it superior to obtaining professional opinion that doesn’t come free of charge. The DIY approach is okay for covering the basics, but potential drawbacks are undeniable for large estates. At least 70% of couples who choose to draft their own real estate plan forget to appoint a suitable guardian for their minor child. Online legal resources are not run by real lawyers, thus they cannot give any valuable advice.
A false sense of security is usually all you get out of a DIY estate plan. One misplaced signature, an incomplete answer, or slight omission is all it takes to render the paperwork invalid. Estate planning is not a one-time thing because life is continuously changing; it is integral to revise and update the documentation accordingly. For example, if you inherit new property, have another child, get divorced, or lose a family member, a previously drafted Last Will would no longer be applicable. Once you realize that your estate plan needs amendment, you will require guidance from a lawyer to make that happen.
