Estate planning is an essential process for anyone who wants to ensure their assets are distributed according to their wishes and to protect their loved ones from unnecessary legal hurdles. As an estate planning attorney, I often get asked, “Do I really need an attorney to create an estate plan?” With the rise of DIY estate planning tools and online resources, many people wonder if hiring a professional is necessary. While it is possible to create a basic estate plan without legal assistance, there are significant benefits to working with an experienced attorney, particularly if you want to avoid costly mistakes and ensure your plan is legally sound and customized to your needs.
In this article, I’ll explain why hiring an estate planning attorney can be a wise investment, especially for those with more complex estates or specific wishes.
Understanding What an Estate Plan Entails
An estate plan is more than just a will. It’s a comprehensive set of legal documents that dictate how your assets will be managed and distributed upon your death, and how your affairs will be handled if you become incapacitated. A typical estate plan may include:
– A will, which outlines who will inherit your assets and who will serve as guardians for your minor children.
– A trust, which can help manage your assets during your lifetime and distribute them after your death, often avoiding probate.
– A durable power of attorney, which designates someone to manage your finances if you are unable to do so.
– A healthcare directive or living will, which outlines your medical care preferences in the event you are unable to communicate your wishes.
– Beneficiary designations for life insurance policies, retirement accounts, and other assets that pass directly to named individuals.
Each of these documents must be tailored to your specific situation and adhere to state laws. While online templates may provide general guidance, they often lack the flexibility or specificity that many people require.
When a DIY Estate Plan May Suffice
For individuals with very simple estates—those with few assets, no minor children, and uncomplicated family situations—using an online tool to create a basic will might be sufficient. Some DIY estate planning platforms offer step-by-step guidance and templates that can work in straightforward cases. If your assets are modest, your beneficiaries are clear-cut, and you don’t expect any complications, these tools might help you cover the basics.
However, even in simple cases, there are risks. Without legal training, it’s easy to overlook important details or misunderstand the requirements of estate planning in your state. For example, not all states have the same requirements for witnessing and notarizing a will, and if these procedures are not followed correctly, the will could be challenged or invalidated.
In fact, may people have us review their DIY estate plans and we often find issues. Keep us in mind if you do choose the DIY route!
When You Should Hire an Estate Planning Attorney
For many people, estate planning is not a one-size-fits-all process. Complexities such as family dynamics, significant assets, or special circumstances (like blended families or a business you own) can make the process more complicated. Here are some scenarios where working with an attorney is strongly recommended:
1. You Have a Complex or Large Estate
If you have substantial assets, own real estate in multiple states, or have a business, creating a robust estate plan is critical. An attorney can help you minimize estate taxes, plan for the transfer of business ownership, and ensure your heirs receive their inheritance with minimal legal hurdles.
An estate planning attorney can also help set up trusts to manage assets, reduce estate taxes, and avoid probate, ensuring that more of your wealth passes to your beneficiaries rather than being consumed by legal fees and taxes.
2. You Want to Avoid Probate
Probate is the court-supervised process of distributing your assets after your death, and it can be time-consuming, expensive, and public. Many people want to structure their estate in a way that avoids probate entirely. An attorney can help create a living trust, transfer-on-death deeds, and other mechanisms to bypass probate and simplify the distribution process.
3. You Have Minor Children
If you have minor children, your estate plan will need to address who will take care of them if something happens to you and how their inheritance will be managed. An attorney can help you appoint guardians for your children and set up trusts to ensure their financial well-being, preventing legal complications down the road.
4. You Have a Blended Family or Complex Family Dynamics
Blended families, estranged relatives, and second marriages often require more careful planning. You may want to provide for children from a previous marriage while also ensuring that your current spouse is taken care of. Navigating these issues can be tricky without expert legal advice. An attorney can help draft documents that clearly reflect your wishes and reduce the likelihood of family disputes after you’re gone.
5. You Need to Plan for Incapacity
Estate planning is not just about what happens after you die; it also involves preparing for the possibility that you could become incapacitated due to illness or injury. A power of attorney and healthcare directive are essential documents that allow someone you trust to make financial and medical decisions on your behalf if you’re unable to do so. An attorney can ensure these documents are properly drafted and enforceable, giving you peace of mind.
6. You Want to Protect Against Challenges to Your Estate
Unfortunately, wills are sometimes contested by family members or others who feel they were unfairly left out. Having an attorney involved in the creation of your estate plan can help safeguard against challenges, as the attorney can ensure your plan is legally sound and carefully drafted to reflect your true intentions.
7. You Want Ongoing Advice and Updates
Estate planning is not a one-time event. Your life circumstances, the law, and your wishes can change over time, and your estate plan should evolve accordingly. Working with an estate planning attorney allows you to update your plan as needed, ensuring it remains effective and up to date.
The Risks of DIY Estate Plans
Many people are drawn to DIY estate plans because they seem cheaper and more convenient than hiring an attorney. However, the risks often outweigh the initial savings. A poorly drafted or incomplete estate plan can lead to unintended consequences, such as assets not being distributed according to your wishes, disputes among family members, or legal challenges that could have been avoided.
In some cases, DIY estate plans are invalidated because they don’t meet state-specific legal requirements, resulting in unnecessary legal expenses and delays in the administration of the estate.
Conclusion
While it is possible to create a basic estate plan without an attorney, doing so comes with significant risks, especially for those with more complex estates or unique circumstances. An estate planning attorney provides expert guidance, ensures your documents are legally sound, and helps you avoid costly mistakes. For most people, the peace of mind that comes from knowing your affairs are in order and your loved ones will be protected far outweighs the cost of professional legal advice. If you want a comprehensive, customized estate plan that meets your needs and goals, consulting with an estate planning attorney is a smart investment in your future.