Why Do-It-Yourself Estate Planning Isn't Always Wise

We Americans pride ourselves on being rugged individualists – we think we can do anything and do it well. While that may be true of weekend home improvement projects, it's rarely true of situations involving the law. 

Most of us are familiar with legal self-help web sites like LegalZoom.com®. Famous O.J. Simpson lawyer Robert Shapiro touts the low prices of this service, which allows users to create their own wills for bargain-basement prices. Some people's needs are well cared-for by the documents created using LegalZoom and other similar providers. But for most people, nothing can really replace the personal touch that can only be provided by a well-trained and experienced attorney.

Without doubt, LegalZoom and other self-help providers can save a user money up front. But as those of us of a certain age may remember from the Fram oil filter commercial: “Pay me now [Fram filters were more expensive than their competition] or pay me later [for a new engine because the cheaper competitive filter didn't do as good a job of filtering “gunk” from the oil].”

Most self-help sites only provide simple wills. When comparing the price of a LegalZoom simple will with the price of a comprehensive estate plan, people frequently suffer sticker shock. The reason for this is not readily apparent to most non-lawyers: they are unknowingly comparing apples and Buicks.

Yes, a simple will can make sure your assets pass to the people you designate (beneficiaries). But, your assets won't end up in your beneficiaries' possession for 12-16 months. Not only that, your beneficiaries will almost certainly receive less than you intended because some of your assets will likely have to be sold to pay the costs of probate, which are typically about 5% of the death-date value of your assets.

Finally, but most importantly for those with minor or special-needs children, any guardians you designate can't be appointed by the court until someone files the will for probate. As a practical matter this means that if both parents die at the same time, their children will be placed in custody of the Department of Social Services until the court appoints their guardians – a result most parents would be unhappy about if they knew this in advance. A comprehensive plan prepared by an experienced attorney will make sure that assets are quickly distributed to beneficiaries, that assets to be used to care for minor and special-needs children are readily available upon your passing, and that all of this can be accomplished for a total cost that is less than the combined cost of a simple will and probate.

While services like LegalZoom have their place, they are little more than automated document assembly programs that create the same documents (personalized for each user) again and again. If you have questions about the law and what might be best for your situation, these services won't be able to help. Not only that, they won't be able to help your survivors take care of necessary business in the painful aftermath of your passing.

No family is the same. An on-line forms provider isn't equipped to help you protect a child or relative with special needs, or protect a child’s inheritance from creditors or a vindictive spouse in a nasty divorce. They cannot tell you how to protect assets from taxes or help you achieve your financial or charitable goals.

Even if you don't have a lot of assets, you likely have assets with special value that you'd like to see passed on to specially-designated beneficiaries. We've seen some knock-out drag-down fights over some of the smallest assets like grandma’s wedding ring, dad’s favorite gun, or the china set. The typical automatically generated form doesn't deal well with these kinds of assets.

If you choose a lawyer to help you address matters that should be of concern when it comes to disposing of the things that mean most to you, he or she will become a trusted adviser: someone who is there to answer your legal questions on estate planning and other situations you may encounter throughout life and is also at the ready to help your survivors through their time of grief. Such a lawyer is well-positioned to help your family even after your passing.

Northland Law Firm LC is the home of your personal lawyer for life. If you'd like more information, please call (816) 476-2520 or send an email to moreinfo@northlandlawfirm.com. We'll send some information to you and after you respond to that mailing, we'll schedule a meeting talk about designing an estate plan that fits the needs of you and your family.