The Dangers of Do-It-Yourself Wills and Trusts

By Gary Altman



There will be many projects this spring where you may be compelled to try and DIY (do-it-yourself) - replacing a light fixture, trying a new faux finish painting technique, or maybe even putting up a new fence, if you're feeling bold. But there is one project that you should never, ever take on alone, and that is drafting your own will or trust.



DIY Estate Planning

In a time where just about anything can be purchased online and when infomercials inundate our airwaves boasting all kinds of "How To" products aimed at making consumers feel invincible, it's important to remember that when it comes to legal documents, if it seems too good (simple, cheap) to be true, it most certainly is.

From LegalZoom to Suze Orman, there is no shortage of companies and products promising hassle-free, "customizable" wills and other estate planning documents, "at a tiny fraction of the cost of an estate planning attorney." It's true; lawyers do tend to charge more than $20 to draft wills for their clients. The reason for this is that the devil is in the details, and lawyers are specifically trained to deal with those details.



Problems Can Arise

Countless problems can arise when using online wills and trusts services. Here are just a few.

¥ Laws: What good is the estate planning software you purchased back in 2000 if the laws changed in 2007? Estate laws (whether federal or state) are not written in stone. They change; they expire; they act retroactively. The new administration has many changes in store with respect to the Federal Estate Tax and other laws that could greatly impact your estate planning.

Your lawyer's job is to stay on top of these changes and to make sure that your estate planning documents take them into consideration for the benefit of you and your beneficiaries.

¥ Maryland Specific Laws: Most often, online/DIY services do not take into account specific state laws. Maryland's estate and inheritance tax laws are unique in the country. Some states allow handwritten wills; Maryland does not. An estate plan drafted for a couple in California will be entirely different that one drafted for a couple in Maryland.

An online/DIY service that produces a standard will or trust for anyone in the country can easily result in additional taxes, expenses and hassles. Only a skilled estate planning attorney, well versed in the nuances of Maryland estate and tax laws, can ensure that your estate wishes are honored.

¥ Plain Meaning Rule: The plain meaning rule, which instructs courts to look only at the plain meaning of words contained in the will, underscores the importance of obtaining professional advice. A simple typo - an incorrect word or clause - can dramatically transform the legality and meaning of the will, negating the very purpose of its creation.

¥ Trusts: Trusts are often used as a means of avoiding probate and shielding against hefty estate taxes. There are many kinds of trusts used in estate planning (e.g., revocable, irrevocable, discretionary, spendthrifts, marital, special needs and testamentary trusts, to name a few) and only an experienced attorney has the knowledge and understanding to advise on the most appropriate and effective one for your unique estate. Online and other forms of DIY estate planning services are not equipped to provide you with advice or to determine which type of trust is advisable for your unique situation.

¥ Miscellaneous: There are a host of other potential problems with DIY estate planning tools. Such services cannot account for the plethora of related financial, tax and personal issues that should be identified and thoroughly considered, such as a child who has a spending problem or one who is has marriage difficulties or one who may have a creditor problem or lawsuit in the future. In addition, they don't address the critically important issue of regular review and maintenance of your estate documents throughout the course of your lifetime.

A home improvement project may be one thing, but don't take a chance by trying to take on your own estate plan. Any perceived savings almost assuredly will be wiped out, and then some, by negligence, and by then it may be too late.



Gary Altman, Esq., is the principal and founder of Altman & Associates (www.altmanassociates.net), an estate planning law firm in Rockville. He can be reached at 301-468-3220 or via e-mail at gary@altmanassociates.net. For the latest information on estate planning, check out his estate planning blog, Altman Speaks.