DIY Estate Planning Cons
Of course, it may be tempting to save money by planning your estate by yourself, but there are many cons to DIY estate planning. There are plenty of small details that the average person won’t be able to account for unlike an experienced estate planning attorney. For this reason, it always makes sense to get professional help from an attorney in your area.
Estate Planning Details
The first thing to understand about estate planning is that there is no single document labeled as an “estate plan.” Rather, an estate plan is an idea of what you want to happen to your valued assets following your death. The estate plan will consist of a collection of documents that create the legal situation for your wishes to occur.
A large portion of these documents are based on the state you’re living in, which means getting the details correct is important. If you do not know exactly how to proceed, there is a good chance something will be incorrect, ultimately leaving your family to clean up any messes after you are gone.
The Dangers Of Estate Planning
Let’s take a closer look at how DIY estate planning can alter your wishes in wills and trusts.
Wills
Wills are legal directives that spell out exactly what you would like done with your estate after your death. In some cases, a DIY will is a cost-effective measure one can take when leaving possessions to just one or two people.
As your estate increases in size, though, the value of the assets also increases and the number of people involved can grow, as well. In this case, it’s best to get the help of an estate planning attorney. This is especially true when you have minor children.
One more key to keep in mind is that wills need updating as time goes on. If you have kids, get married or divorced, you will have to continuously adjust the will. Professional help with this process can make life easier in the long run.
Trusts
A legal document that passes assets to beneficiaries is known as a trust. Unlike a will, these come with conditions attached to the bequest, such as distributing funds over time or when a beneficiary reaches a certain age. Trusts can be either revocable or irrevocable.
Irrevocable trusts can carry some tax advantages as well as the advantages of not typically being subject to probate court. Trusts can be done DIY, but any individual must do some serious research before proceeding.
What Can Be DIY With Estate Planning?
Some estate documents can be generally be done without consulting a CPA or lawyer. One of these is an advanced healthcare directive, which lets healthcare providers know what your wishes are in the event you are unable to communicate them yourself.
In conjunction with this directive, you should also create a durable power of attorney. This grants legal authority to a trusted family member or friend to make financial and medical decisions on your behalf.
Conclusion
At the end of the day, an estate plan is best left to the experienced estate planning attorneys. Make sure a professional is there to help guide you through the numerous documents, including wills and trusts.
Source:
- (2024, Jan 04). The Dangers of DIY Estate Planning. Retrieved May 07, 2024. from https://smartasset.com/taxes/the-dangers-of-diy-estate-planning
Speak With Our Estate Planning Attorneys In Phoenix, Arizona Today
Estate planning is the right thing to do for the people you love. It’s another way to say “thank you” to those who love you. Some of the decisions are hard, but at Ogborne Law, we will help you navigate these difficult decisions.
Your Arizona estate planning attorney can help you select a will or trust or both. Your estate solution will work for you. You will have the peace of mind that comes with effective planning for the future. Call 602.343.1435 or contact Ogborne Law with questions.
