What’s the Difference Between a DIY Estate Plan and an Attorney Drafted Estate Plan?
Do-it-yourself (DIY) projects are a popular way to save money. People change their own oil, paint their own walls, and some attempt to do their own electrical work around the home. My dad used to call this “loving hands at home” when he was looking at potential investment properties. Sometimes, these attempts at saving money end up costing significantly more than if you had called a professional in the first place. This is especially true when it comes to estate planning.
The Pros, and Mostly Cons, of DIY Estate Plans
DIY estate plans have become increasingly popular in the last decade. It’s a seemingly affordable way for people to create estate plans without the hassle of paying for a lawyer.
Many DIY estate plan companies offer AI-powered technology or simple plug-and-play forms that users can input their information into. Although cheap and convenient, DIY estate plans may leave behind some unanswered questions that unintentionally force loved ones into a courtroom.
What are Some Problems with DIY Estate Planning?
When drafting an estate plan, there are specific requirements that must be met. These include:
Properly disposing of the estate.
Addressing how debts, taxes, and obligations are paid.
Appointing guardians for children.
Appointing executors and trustees.
Balancing the needs of beneficiaries to avoid litigation.
1. Differing State Laws
A major issue with DIY plans is that they don’t always take differing state laws into account. If you own property in multiple states, a DIY plan may not "pass muster" in all of them, potentially subjecting your estate to unforeseen taxes or legal hurdles.
2. Improper Language
Certain legal language must be present for a plan to be valid. Failure to use the proper terminology could render your estate plan void or unenforceable. This means your estate would have to go through probate—exactly what we are trying to avoid!
3. Lack of Insight on Appointments
DIY plans don’t offer insight into your choice of trustee, guardian, or executor. While you may think appointing all four of your children as co-trustees is fair, an experienced attorney can point out the practical pitfalls of that decision and guide you toward a more functional arrangement.
4. Mistakes Found Too Late
Most importantly, mistakes in DIY plans are usually caught after the creator is gone. Without the creator there to clarify their intent, families often end up in drawn-out legal battles. By saving money upfront, the estate often loses much more in the end.
The Benefits of Attorney-Drafted Estate Plans
Estate plans drafted by an attorney cover all your bases, ensuring your legacy is passed to your loved ones quickly and seamlessly.
An attorney acts as an investment. You pay a sum upfront for invaluable insight, custom legal guidance, and a plan that actually works in real life. They take the time to understand your family dynamics, financial situation, and long-term goals. You don’t just leave with documents; you leave with a strategy.
Ready to Talk to an Attorney About Your Estate Plan?
Estate planning attorneys ensure that your estate avoids probate. In California, probate is costly, time-consuming, and public.
While I don’t handle probate matters, I specialize in creating estate plans that bypass the court system entirely. This ensures your loved ones receive your assets promptly and privately.
A DIY service won’t talk to you, brainstorm with you, or clarify your concerns. I am an experienced estate planning attorney who will guide you through every step of the process.