Problems with the DIY Approach to Estate Planning

Let us face it: Gen X has a reputation for being independent, resourceful, and, yes, maybe a little skeptical of authority. You grew up with “Do It Yourself” projects and learned to fix things on your own. However, when it comes to estate planning, the DIY route can be risky and might leave your loved ones with more problems than solutions.

One common issue with the DIY approach is the use of generic online templates. These forms are designed to be “one size fits all,” but estate planning is anything but universal. Your life is unique, and your estate plan should reflect that. Online templates cannot account for state-specific laws, complex family dynamics, or the nuances of your financial situation. For example, in Utah, there are specific requirements for wills and trusts that an online tool might not address. Missing just one legal detail can render a document invalid.

Here is a scenario to consider: Imagine you create a DIY will, thinking you have covered all the bases. However, you forget to name a contingent beneficiary for your assets. If your primary beneficiary predeceases you, those assets could end up in probate court, where the state decides how they are distributed. This is not exactly what you had in mind, right?

Or let us say you set up a trust on your own but do not properly fund it. Perhaps you forget to transfer the deed for your house into the trust’s name. After your passing, your heirs discover that the trust does not actually control one of your largest assets. Now they are stuck dealing with probate, unexpected delays, and potential legal fees—all things your trust was supposed to avoid.

Another significant risk with the DIY approach is the inability to plan for unforeseen circumstances. What happens if you become incapacitated or need long-term care? An attorney can help create durable powers of attorney, advance healthcare directives, and other vital documents that protect your wishes during your lifetime. These elements are often overlooked in DIY estate plans.

Working with an experienced attorney ensures that your estate plan is customized to your needs and fully compliant with state laws. Attorneys can help you think through scenarios you might not consider on your own, such as providing for minor children, protecting assets from creditors, or addressing blended family dynamics. They also know how to manage sensitive family situations, such as estranged relatives or disagreements among beneficiaries.

Estate planning is not just about filling out forms; it is about building a legacy and protecting the people you care about most. By partnering with a professional, you can avoid costly mistakes and gain peace of mind knowing your plan is solid. So, channel your DIY energy into other projects and leave estate planning to the experts. It is one decision you and your family will not regret.

Regal Estate Planning provides free reviews of current plans, and we will list out the benefits of adding to your current plan or creating a new one customized to fit your family’s needs. Call us today!