DIY Estate Planning: Tips and Considerations

Estate planning is one of the most important steps you can take to protect your family and ensure your assets are distributed according to your wishes. With the rise of online tools and resources, many individuals consider handling their estate planning on their own. However, DIY estate planning comes with significant risks, especially when you don’t have the guidance of a professional. While it may seem like a cost-effective solution, there are several factors to consider before opting for the do-it-yourself path. Keep reading for a full outline of the key questions to ask yourself if you’re thinking about DIY estate planning and a checklist for those considering the proper route. 

7 Questions to Ask Before You Choose DIY Estate Planning

Before you begin crafting your estate plan, it’s crucial to ask yourself these top 7  important questions to determine if this approach is right for you: 

1. Is My Estate Simple or Complex?

For those with straightforward financial situations – such as a single property and few beneficiaries – DIY estate planning may seem sufficient, but if you have a complex estate that includes multiple properties, business interests, or intricate financial arrangements, the risks of DIY planning increase dramatically. In these cases, missing critical details or failing to comply with legal requirements can cause significant complications for your heirs. Even if you think your estate is simple, experienced guidance can help ensure all assets and liabilities are properly accounted for and that you don’t overlook any legal obligations. 

2. Am I Confident I Can Write a Legally Binding Will or Trust?

A properly executed will or trust is the cornerstone of any estate plan, but creating a legally binding document isn’t as straightforward as filling out an online form. If there are mistakes, ambiguities, or omissions in your DIY will or trust, your estate may not be distributed as you intended, and disputes can arise among family members. Wills and trusts created by skilled estate planners are much more likely to hold up in court and reflect your true wishes.

3. Have I Considered Tax Implications?

Estate taxes can have a significant impact on what your beneficiaries receive. DIY estate planning services may not offer detailed tax advice, which is crucial for minimizing tax burdens on your heirs. An experienced estate planner will help you navigate the complexities of estate taxes and implement strategies to reduce liabilities.

4. Do I have Children or Dependents?

If you have minor children or dependents, you need to carefully consider who will care for them after your death. Choosing a guardian is a major decision, and failing to make this clear in a will can lead to legal battles among family members. Professionals can help ensure that your wishes for your children’s guardianship are clearly and legally outlined. An experienced planner will guide you through this sensitive process and ensure guardianship is properly documented. 

5. Have I Appointed a Trustworthy Executor or Trustee?

Your executor (for a will) or trustee (for a trust) is responsible for ensuring your estate is managed and distributed according to your wishes. Choosing the wrong person – or failing to give them proper legal authority – can lead to mismanagement of your assets. Working with an estate planner ensures that your chosen executor or trustee is properly designated, minimizing potential issues after your passing compared to DIY estate planning.

6. Am I Familiar with Utah’s Estate Planning Laws?

Estate planning laws differ by state, and failing to comply with your state’s specific requirements can render your will or trust invalid. A skilled estate planner ensures all documents meet Utah’s legal standards, providing peace of mind that your estate plan will be legally enforceable. Estate planning professionals stay up-to-date on the latest laws and regulations, reducing your risk of errors. 

7. Am I prepared for End-of-Life Decisions?

Creating an advanced health care directive and designating powers of attorney for health care and finances are critical aspects of estate planning. These documents ensure your medical and financial wishes are followed if you become incapacitated. DIY estate plans often neglect these essential components. Experts can help you craft clear, legally binding directives to prevent confusion or disputes in medical and financial matters. 

Professional Estate Planning Checklist

While DIY estate planning may seem appealing, working with a proficient law firm offers a much more secure path. Below is a professional estate planning checklist to ensure your plan is thorough and legally sound: 

Inventory Your Assets and Debts

An estate planner will help you identify and account for all your assets (such as real estate, investments, and personal property) and debts. This step ensures you have a clear understanding of your estate’s value and what your beneficiaries will inherit. 

Create a Legally Enforceable Will or Trust

An experienced estate planner can craft a will or trust that fully reflects your wishes while ensuring legal compliance. A well-drafted will provides clear instructions on how your assets will be distributed, while a trust can offer additional benefits like avoiding probate and reducing taxes.

Establish Powers of Attorney and Health Care Directives

Skilled planners will help you create durable powers of attorney for both financial and medical matters, as well as an advanced health care directive. These documents ensure that someone you trust can make decisions on your behalf if you’re unable to do so. 

Assign Guardians for Minor Children

Professionals will ensure that your wishes regarding guardianship for your children are clearly outlined and legally binding, reducing the likelihood of disputes among family members. 

Minimize Taxes and Legal Fees

By working with an experienced estate planner, you can implement strategies to reduce your estate’s exposure to taxes, ensuring that more of your wealth is passed on to your beneficiaries. Additionally, you’ll avoid costly legal errors that could arise from DIY estate plans. 

Review and Update Your Plan Regularly

Life changes – such as the birth of a child, divorce, or significant financial shifts – require updates to your estate plan. A professional will ensure that your plan evolves as your circumstances change so you don’t have to fix your DIY estate plan in the middle of life’s biggest milestones. 

Ensure Safe and Accessible Document Storage

Specialists can guide you on how and where to store your estate planning documents, ensuring they are secure but accessible to the right people when needed.

Working with a Professional Might be the Best Option for Your Future

While DIY estate planning might appear cost-effective, the risks far outweigh the benefits. Missing key details or failing to comply with state laws can lead to costly disputes, tax issues, and even the invalidation of your will or trust. For peace of mind to ensure that your wishes are followed precisely, working with an experienced law firm that specializes in estate planning is the best choice. 
At Kelly Cardon Law, our team of skilled estate planning attorneys is here to guide you through every step of the process, ensuring that your estate plan is thorough, legally sound, and tailored to your unique needs. Contact us today to schedule a consultation and protect you and your family’s future.

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