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.

3 Reasons Why Estate Planning is Improved When You Work With a Lawyer

Talking about death can be difficult. It’s also a bit of a downer, to put it mildly. So many of us put estate planning off as long as possible. For most people, hiring a lawyer can elicit a similar reaction. When you put the two together, it’s easy to understand why some people may want to avoid discussing their own death or incapacity altogether. Some try to address their own mortality with as little conversation as possible by creating their estate plan on their own, or by using online resources.

The following are 3 reasons why working with a lawyer can improve the estate planning experience.

Expertise

A certified expert estate planning lawyer has years of training in both estate planning and tax matters. You can rely on that expertise when you ask detailed questions. They can walk you through hypothetical scenarios, tell you why some of your ideas are fantastic approaches, and maybe how some of your ideas aren’t the best way to proceed. An estate planning lawyer can provide detailed advice and counsel suited to your specific situation, knowing they are required to have your best interest in mind. You never have to wonder if their information is inaccurate or outdated, or whether they have others’ interests in mind.

Working with a lawyer creates a dynamic feedback loop. They can ask follow up questions of you when they hear an issue that you may not have even identified yourself. An estate planning professional can help identify blind spots in your thinking and help you resolve them.

Experience

Estate planning lawyers have years of experience working with other clients—both in planning, as well as administering trusts and estates of those who have died. In that experience, they can offer you a wealth of examples that worked out well, and experiences that may not have worked out as the client had intended. They bring this experience into your situation. You receive the opportunity and benefit of years of planning experience on demand. Additionally, when a crisis or issue does arise, the lawyer will be there to advise and support you or your loved ones to help you get through the crisis.

Peace of Mind

Estate planning lawyers are there to support you through this often challenging process. They can provide some levity to what may seem like a heavy topic. They can be a sounding board to inter-family dynamics. Lawyers can provide perspective and context to what can seem like a complicated or overwhelming dilemma. All the while, an estate planning professional will ensure that your documents are drafted accurately, meticulously, and effectively. You can rest assured that your estate planning documents are valid, enforceable, and can withstand any potential challenge. This peace of mind is invaluable.