By Paul J. Dean, Esq.
The Dean Law Firm
Alexandria, VA – The world of artificial intelligence is upon us, creeping into many aspects of our lives. The legal field of estate planning is no exception. While watching TV or browsing social media, you’ve likely seen ads for “online” estate planning platforms such as “Trust & Wills” or LegalZoom. For a “reasonable fee,” you can feed your personal and financial information into online forms, and AI instantly pops out complex legal documents for you to sign. Apparently that’s all there is to it.
For those who are seeking to protect their hard-earned assets, these tools offer a cheaper option than hiring an attorney. However, users should think twice before trusting their most valuable possessions and economic security to an anonymous internet robot.
As an experienced estate planning attorney, I frequently come across DIY estate planning documents. Here are some of the major pitfalls I see in the world of “online” Wills and Trusts:
• “One Size Fits All” solution: An estate plan should meet your unique circumstances. People have different family dynamics, asset profiles, and goals for efficiently distributing assets to beneficiaries. Online Wills and Trusts are not designed to consider your specific needs – they offer a “one-size fits all” solution. What they don’t offer is a strategic approach in considering the wide variety of legal tools designed to meet your specific goals. They can’t assess whether you need a Trust as part of your plan, how you might save on taxes, how you account for your business interests, or who would make a good executor, trustee or custodian for your children.
• Costly probate process: One of the primary goals of estate planning is to pass assets to your heirs without costly probate taxes, legal fees, and court fees. The average probate can take two years and cost some $5,000 – $15,000. An estate lawyer can develop a plan using Trusts and beneficiary designations that avoid probate altogether. Your online robot is not interested in probate avoidance.
• Faulty execution of documents: The process of executing your estate planning documents – signing in front of witnesses and a notary – can be complex and easily botched. Errors can lead to legal challenges, court petitions, and all kinds of costly headaches down the road. A qualified attorney will supervise the proper execution of your documents, which is a better option than printing your own documents and figuring the rest out somehow.
• Bad Law: Laws dealing with the creation and administration of Wills and Trusts are state specific and constantly shifting. Do you trust online platforms to keep up with the specific legal nuances and trends in every jurisdiction? I don’t! Errors in law can be unforgiving and costly.
• Updates, Amendments, Questions? Forget About It: Online platforms want to spit out your documents and be done with you. What if you need a quick update? Have wholesale changes that are required due to life-changing events? Or simply have a few questions? Estate planning is an ongoing lifelong process, and we consider your documents to be “Living and Breathing” instruments that need updates and fine tuning over time. It’s useful to have a relationship with an attorney who knows you, your estate and your relationships so updates can be accomplished quickly and affordably (without having to start from scratch), and who can be there to help out in a pinch.
As an estate planning attorney, it may seem obvious that I am biased. But we have seen too many nightmare scenarios involving “Do It Yourself” estate planning documents. Do yourself a favor and ignore the temptation to save a few bucks on these online platforms. You – and your loved ones down the road – will be grateful for it.
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