Why Is DIY Estate Planning Dangerous?

 Posted on October 08,2020 in Estate Planning Blog

There is nothing wrong with a little do-it-yourself (DIY) work. In fact, there are few things that are quite as satisfying as a job that you have done well. However, there are times when a particular job is best left to the professionals. You would not try to completely rewire your house if you had no experience in electrical work. Similarly, estate planning should be done with the help of someone with working knowledge and experience in the industry. Granted, an estate plan gone wrong may not pose the same physical threat as an electrical DIY project, but there are still dangers that can and should be avoided.

The Importance of a Clear and Valid Estate Plan

When it comes to mistakes in estate planning, the future of your loved ones may be placed at risk. Efforts to save money in the short-term—such as using commercially available kits or DIY programs to create your estate plan—could end up costing your heirs more down the road. Unclear or improperly executed estate plans can take months, if not years, to hash out in probate court. All the while, your estate dwindles as a result of attorneys’ fees, taxes, court costs, and other administrative expenses. In some cases, this could take a sizable chunk out of your estate, which means you will be leaving behind a lot less than you had intended.

Common Mistakes Made in DIY Estate Planning

The opportunity for mistakes in estate planning are nearly endless. Some are more common than others, however. For example, many DIY estate planners use the wrong documents or make critical errors in their preparation. Others fail to accurately consider the tax implications of their estate. For example, a DIY estate planner may draw up a plan according to federal tax laws but fail to factor in how local state taxes will affect their estate. Or, they may attempt to consider both state and federal tax implications but improperly calculate their earnings or the value of their estate.

Investing in the Future

Hiring an attorney for your estate planning needs might cost you more now than you would spend on a DIY kit or boilerplate documents from an online estate planning mill. However, the savings that it can produce for your loved ones in the future can amount to much more than just money. Time, stress, and potential arguments over what your wishes really were can be minimized. Furthermore, an experienced estate planning attorney may be able to find creative solutions that will leave larger inheritances to your heirs and beneficiaries.

Connect With a DuPage County Estate Planning Lawyer

At A. Traub & Associates, we pride ourselves on our ability to craft creative solutions for our clients and their families. Committed to the future of your loved ones and backed by decades of experience, we will give your estate plan the time, dedication, and attentiveness it deserves. Do not let a DIY estate plan leave behind a mess. Schedule a confidential consultation with a knowledgeable Lombard estate planning attorney today. Call us at 630-426-0196 for an appointment.

Sources:

https://smartasset.com/taxes/the-dangers-of-diy-estate-planning

https://www.natlawreview.com/article/unintended-consequences-do-it-yourself-estate-plan