DIY Estate Planning vs. Hiring an Attorney
With the advent of online platforms like LegalZoom and TrustandWill.com, many people are considering DIY estate planning as a cost-effective alternative to hiring an attorney. Let’s explore the differences between these two approaches, focusing on the services offered, the expertise involved, the potential consequences of errors, and the benefits of an attorney's experience in estate administration.
Services Offered
DIY Platforms: Online estate planning platforms provide users with templates and step-by-step guides to create wills, trusts, and other essential documents. These services are often affordable and can be completed from the comfort of your home. However, they are generally one-size-fits-all solutions, which may not account for unique or complex estate planning needs.
Attorneys: Hiring an attorney for estate planning offers a personalized approach. Attorneys can draft custom documents tailored to your specific situation, provide legal advice, and address any unique concerns. They can also help with more complex planning, such as setting up special needs trusts or handling business succession planning. Attorneys listen and react to what you tell them. They offer feedback and follow up questions that an online platform may miss.
Expertise
DIY Platforms: While these platforms offer convenience, they lack the nuanced understanding of estate law that a professional attorney possesses. Users may not be aware of state-specific laws or potential legal pitfalls, leading to incomplete or incorrect documents. Additionally, signing the documents and next steps like funding the trust are completely up to the end user.
Attorneys: Estate planning attorneys are trained professionals with in-depth knowledge of state and federal laws. They can provide comprehensive advice and ensure all legal requirements are met. Their expertise can be particularly beneficial for individuals with substantial or complicated estates. Clients can follow up with the attorney if additional assistance is required.
Consequences of Errors
DIY Platforms: Errors in DIY estate planning can have significant consequences. Mistakes or omissions can lead to disputes among beneficiaries, increased taxes, or even the invalidation of the entire document. The cost savings of a DIY approach can quickly be outweighed by the potential legal fees and complications arising from errors. In estate matters, DIY errors can go undetected until its too late, oftentimes years or decades later.
Attorneys: An attorney's involvement minimizes the risk of errors. They ensure that all documents are correctly drafted, executed, and trusts are funded.
Experience in Estate Administration
DIY Platforms: These platforms do not offer ongoing support or advice once the documents are completed. Users are on their own when a crisis arises and when it comes to administering the estate.
Attorneys: Attorneys leverage their experience in estate administration to inform their planning strategies. They can anticipate potential issues and design plans that streamline the administration process. Their ongoing availability provides peace of mind and support for executors and beneficiaries.
Choosing between DIY estate planning and hiring an attorney depends on your specific needs and circumstances. While DIY platforms offer a cost-effective and convenient solution for straightforward estates, the expertise and personalized service provided by an attorney can be invaluable for complex situations. Ultimately, the peace of mind and protection against errors that an attorney offers may justify the higher upfront cost.