Do It Yourself (DIY) Estate Planning can present some Challenges after Your Death
An article published by U.S. News & World Report reported the pros and cons of DIY estate planning. Obviously, lawyers are opposed to the do-it-yourself approach claiming this type of estate planning breeds mistakes—one size never fits all. Most agree that for people with complicated family or legal situations (e.g., multiple kids, multiple spouses or great wealth), professional health is the preferred route. However, the disagreement seems to occur more often over straightforward cases—a will for a single person without much money.
Chas Rampenthal, general counsel for LegalZoom, a Los Angeles-based company that sells DIY documents over the Internet, says that DIY sites are good for those people who cannot afford legal representation. LegalZoom helps people who would otherwise not seek any help at all—better to have something rather than nothing, according to Rampenthal.
On the other end of the argument, Deborah Jacobs, author of Estate Planning Smarts, gives the main reasons why legal representation is a must. First and foremost, you might not understand the terms. Not fully understanding what you are giving away or divesting could result in giving someone too much power and place that person in an position where they can take advantage of you. Or worse. Another risk is that if you rely on a self-written will to transfer your money to family members after you pass, the will could possibly contain many holes. A person is not likely to prepare to be pre-deceased by children, divorce, or the births of new children. Also, because the federal estate tax is in a present state of limbo, estate planning lawyers are pulling out their hair as they try to come up with strategies for their clients to deal with present uncertainties.
Jacobs also offers some tips to keep costs down: Read up on estate planning before you meet with an attorney. This will keep down the hourly rate by avoiding an introduction to estate planning. Also, tell your lawyer up front that you would like to keep costs down. To read more on this topic see Disadvantages to DIY Estate Planning.
Although there is disagreement on DIY estate planning, both sides agree on one thing: keep your will up-to-date. It is suggested to revisit your will at least once a year, whether it be a fill-in-the-blank form or an attorney-drafted document. Contact Wood, Atter & Wolf, P.A. to speak to an Estate Planning Attorney.
