When doing your estate planning, you might think a do-it-yourself (DIY) approach is a smart and cost effective. It can seem appealing and manageable due to the countless online templates and resources at your fingertips. However, there are some significant risks you should consider before diving in.
Here are some potential pitfalls you should be aware of if you are thinking of going down this road when crafting your estate plan.
Missing legal requirements
One of the biggest dangers of DIY estate planning is not meeting the legal requirements. Kentucky has specific laws regarding wills, trusts and other estate planning documents. Your estate plans could be deemed invalid and unenforceable if you don’t follow the legal requirements – a risk you do not want to take.
You may not accomplish your goals
A generalized estate plan might not fully address complexities like blended families, significant assets or specific wishes you might have for your heirs. In such cases, you need a personalized estate plan tailored to your unique situation to achieve your objectives and wishes.
Inadequate tax planning
Many DIY estate plans fail to account for potential tax liabilities. This could eat into your estate and reduce its size. You may expose your estate to hefty taxes that could have been avoided with a well-structured and tax-efficient estate plan.
An increased risk of disputes among heirs
Many DIY estate planning templates use generic terms that can create ambiguity or vagueness, potentially leading to lengthy and costly disputes among your loved ones. If your wishes aren’t clearly outlined or open to interpretation, it can cause unnecessary tension and confusion after you are gone.
Given the potential fallout of a poorly crafted estate plan, the risks involved in doing things yourself are not worth taking. Reaching out for legal guidance can help secure your legacy and protect your loved ones’ interests.