Four Significant Risks of Do-it-Yourself (DIY) Estate Planning
There is no question that completing a do-it-yourself (DIY) project can be extremely rewarding. At the same time, the DIY option is not the right approach for every situation. In some cases, you should rely on a trained professional. With estate planning, there are major risks to taking the do-it-yourself approach. At Poulos LoPiccolo PC, we have extensive experience with wills, trusts, and estate planning. Here, we highlight four serious risks of DIY estate plans.
Risk #1: Internet Estate Planning Forms are Often Inaccurate, Not Customized
There are a wide range of estate planning forms available on the internet? However, unfortunately, these types of forms often cannot be relied upon. Indeed, using internet estate planning forms can lead to significant legal problems. There are issues related to both their lack of accuracy and their lack of suitability for true customization. Indeed, these generic templates often fail to account for the unique aspects of your financial situation, family dynamics, and even state-specific laws.
Risk #2: Seemingly Small Errors Can Carry Major Financial Costs
Another common issue that arises is that DIY estate planning can result in seemingly minor mistakes that actually have very large financial repercussions. For example, relatively common errors that people make—from incorrect beneficiary designations to the improper execution of documents to the inadvertent misinterpretation of material legal terms—can result in (costly) problems. In some cases, these types of errors can undermine a person’s broader estate plan.
Risk #3: A DIY Estate Plan is Rarely Fully Comprehensive (Asset Protection, Health, etc)
Creating an estate plan without professional help often leads to incomplete protection of your assets and health care preferences. DIY plans typically neglect essential components such as asset protection trusts, durable powers of attorney (POA), and advanced health care directives. The right estate plan is a well-rounded estate plan. The lack of comprehensiveness can leave your assets vulnerable to creditors and it can leave your medical wishes unfulfilled. There can be stress, strain, and other problems.
Risk #4: Unclear Estate Plans Risk Serious Familial Conflict
Ambiguities in a DIY estate plan can spark serious conflicts among family members. Without clear, legally sound instructions, there could be big disputes between your loved ones. Of course, this is something that every person wants to avoid. No one wants to leave their family dealing with a terrible conflict. These conflicts can damage family relationships and result in outcomes contrary to your wishes. A top-tier estate planning lawyer can help you put the right plan in place to protect your rights, achieve your goals, and reduce the risk of a conflict.
We Provide Estate Planning Services in New Jersey and New York
At Poulos LoPiccolo PC, our estate planning attorneys are experienced, solutions-focused advocates for clients. Do you have any specific questions about the estate planning process? We can help. Contact us now for a completely confidential initial appointment. Our firm helps clients with wills, trusts, and estate planning in New Jersey and New York.
