From home improvements to gardening, DIY is taking the world by storm, powered by catchy online videos and difficult economic times. That said, one area you might want to think twice before trying to do everything yourself is estate planning. This article will help explain why, including information about:
- The risks of using DIY estate planning tools like online templates.
- Estate planning mistakes you might make and their consequences.
- The value an estate planning attorney brings to the process in California.
Are DIY Estate Planning Services Legally Valid In California?
First things first, DIY estate planning services and documents can be legally valid in California, at least in theory. This is true as long as no mistakes or oversights are made.
You are allowed to write your own will, trust, or other estate planning documents. You can use online templates if you like, but these documents are only legally valid if everything is done correctly and in compliance with the law.
If you went through law school and know exactly what you are doing, you can absolutely handle the process yourself. But if you have not, there is a good chance something might go wrong. Even though you are legally allowed to do it on your own, a small error could lead to delays, cause documents to be rejected, or even create unnecessary conflict among your loved ones.
What Are The Risks Of Using A DIY Estate Planning Service Or Online Template?
Handling your own estate planning (whether using online tools or templates) carries several significant risks that can leave you or your loved ones vulnerable in ways you might not expect.
First, and perhaps most commonly, important details can easily be overlooked. You might miss key documents or fail to account for certain assets and properties, leaving parts of your estate unaddressed.
Second, neither free nor paid online services will tailor advice to your specific situation. They won’t ask you detailed questions that could reveal, for example, the need for a special needs trust for a beneficiary.
Third, critical legal definitions are often left out. For instance, if your documents don’t define what it means for someone to “survive” you, California law could create an unintended result. Someone who outlives you by even a minute could inherit your estate, even if they never have the chance to benefit from it.
Fourth, DIY plans often lack sufficient contingency planning. If your chosen beneficiaries are no longer living, a well-drafted plan should provide clear alternatives. Unfortunately, online templates rarely anticipate these very real possibilities.
Fifth, many DIY documents fail to include provisions for incapacitation. If you were to develop conditions like Alzheimer’s, your family might be forced to go through court proceedings to obtain the authority to meaningfully help you – something that could have been handled within your trust from the beginning.
Sixth, estate planning documents require very precise legal language. Even if something seems clear to you, it may not be legally enforceable. Or worse, it could have the opposite effect of what you intended.
Seventh, vague or unclear language can open the door to disputes, challenges, and family conflict. What may seem like small ambiguities today could lead to major issues later.
Eighth, without professional guidance, you might miss out on better strategies that would better suit your needs. You simply don’t know the full range of options available, and DIY tools aren’t designed to educate you on them.
Ninth, missing even a single legal requirement can invalidate an entire document. I have seen clients hand me what they believed was a valid trust, only to find it lacked essential elements and failed to provide any protection.
Unfortunately, when handling estate planning yourself, many critical areas are overlooked simply because you don’t know what you don’t know. Online platforms are also limited in scope. They can’t think creatively, ask follow-up questions based on your answers, or adapt the plan to meet your unique needs.
Additionally, many online services restrict how much you can modify their language, forcing you into default settings. While these restrictions are designed to limit their liability, they can prevent you from creating a plan that truly fits your wishes and circumstances.
Ultimately, if you want to have a customizable estate plan that actually does what you want it to and won’t cause headaches for your family later down the line, you’ll be better off working with an estate planning attorney who can help guide you.
Attorney Rebecca Sommer is a highly experienced California estate planning lawyer who has helped countless families create simple or intricate estate plans, or deal with the aftermath of failing to do so. Her background in financial services allows her to create plans tailored to your situation, and optimized for tax purposes, which are two of the most common areas DIY estate planning breaks down.
Want to avoid the problems of a DIY estate plan? Have you made a plan and want to get it double-checked? Contact The Law Office Of Rebecca Sommer today to schedule an initial consultation.
What Critical Mistakes Do People Make When Drafting A DIY Estate Plan That Could Lead To Legal Challenges In California?
Of all the risks that come with DIY estate planning, one of the most critical is the possibility of unintentionally undermining your own efforts or opening the door to legal challenges once your documents come into play.
It’s surprisingly easy to run afoul of various laws or include language that creates conflicts with other legal principles. For instance, California follows a rule known as the “rule against perpetuities,” which exists in both common law and statutory form. This rule is designed to prevent people from trying to control the distribution of their assets for an unreasonably long time after their death.
If you unintentionally violate this rule, it can invalidate your entire estate planning document, as if it never existed. And that kind of mistake can happen without you even realizing it, especially if you’re unfamiliar with the legal implications of the choices you’re making.
Any lack of clarity or legal misstep can open your documents up to challenge. That’s not just a threat to your wishes being carried out, it can also lead to serious conflict in court between your beneficiaries, costing them and your estate both time and money. On top of that, the emotional toll from family disputes caused by unclear or inconsistent language can be lasting.
When drafting estate planning documents, it’s important to consider not just the legal requirements, but the practical realities as well. No online tool will ask whether your choices are likely to create tension or disputes. And you may not even realize that your wording could be interpreted in more than one way.
You also need to ensure your documents are consistent with one another and with what you’ve communicated to others. If your documents contradict each other or don’t align with what your loved ones expect, it can create confusion, legal challenges, or even lasting family rifts.
What Are The Potential Long-Term Consequences Of Estate Planning Mistakes In California, Especially For Families With Complex Assets?
The biggest danger is sending your family to court. This might happen because of family conflict, or simply due to a lack of clarity in your documents. Even if no one is fighting, if your will or trust is unclear, your loved ones may still have to go to court just to get a judge to interpret it, fill in missing terms, or clarify your intentions.
One common example is the absence of provisions for incapacity. If your documents do not explain what happens in the event you become incapacitated, your family will likely need to go to court to fill in that gap. Another issue arises when there is no clear endpoint for a trust.
For instance, if you set up an education trust for your grandchildren, and they finish school, but there is still money left in the trust, they may have to petition the court to access the remaining funds. This can create unnecessary delays, costs, and even lead to legal disputes.
Another costly consequence of going the DIY route is inefficiency. This is particularly true when it comes to relying on informal tools like transfer-on-death deeds, adding children to property titles, joint bank accounts, or beneficiary designations.
These methods may seem simple, but they can easily work against you. You might unknowingly create tax problems or set things up in a way that defeats your original goals. In many cases, the same assets could have been transferred in a much more efficient and cost-effective manner had the planning been done with the full legal picture in mind.
Those are two of the costliest consequences of DIY estate planning: the court fight or intervention and the tax implications.
Thinking Of Creating A DIY Estate Plan? Save Yourself And Your Family Trouble By Working With An Attorney Instead
For more information on DIY estate planning risks in California, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (657) 571-1241 today.
Attorney Rebecca Sommer is a highly experienced California estate planning lawyer who has helped countless families create simple or intricate estate plans, or deal with the aftermath of failing to do so. Her background in financial services allows her to create plans tailored to your situation, and optimized for tax purposes, which are two of the most common areas DIY estate planning breaks down.
Want to avoid the problems of a DIY estate plan? Have you made a plan and want to get it double-checked? Contact The Law Office Of Rebecca Sommer today to schedule an initial consultation.
