The Hidden Costs of DIY Estate Planning for Seniors
Legal documents and online legal form providers have seen a rise in popularity in recent times. Many older adults prefer them as they seem to be cost-effective, time-saving, and user-friendly. But poor estate planning will end up creating financial challenges for family members down the road. What appears to be an easy task today may turn out to be an expensive mistake in the future.
Elderly residents in Virginia can benefit from consulting an estate planning lawyer to minimize these potential risks.
Estate planning is not one-size-fits-all
Each family situation is unique. Seniors may own property, have complex family dynamics, be caring for a family member with special needs, or need to consider their long-term care expenses. Forms that are generic and created without consideration of each situation’s unique circumstances are unlikely to address specific issues.
DIY planning is usually done without adequate knowledge of Virginia law and how various estate planning instruments relate to one another. Ideally, an estate plan will consist of a number of documents, including a will, trust, powers of attorney, and advance medical directives.
A senior may inadvertently cause conflict through inappropriate planning.
Improperly executed documents
Another issue that often arises with do-it-yourself estate planning is a mistake in the execution process. There are specific requirements under Virginia law that need to be satisfied before a particular document can be considered legally valid.
For instance, there are specific rules regarding the signing and witnessing of the will. In case any of the requirements are not strictly followed, the validity of the document might come into question in court.
Sometimes, these types of mistakes are only discovered by families after the death of their loved one.
Outdated beneficiary designations
Most folks assume their will covers all their assets, but this is not always the case. Accounts like retirement accounts, life insurance, and certain bank accounts have their own transfer terms.
The individual can create a brand-new estate plan but not update the beneficiaries named in previous plans; the funds can be transferred to a former spouse, deceased relatives, or even someone not mentioned in the will.
DIY estate planning generally pays little attention to coordinating different accounts.
Trust funding mistakes
Many seniors set up trusts on the Internet, thinking that their property will automatically bypass the probate process. Unfortunately, setting up a trust alone is insufficient. The assets must be placed into the trust correctly.
If the asset isn’t retitled or otherwise moved into the trust, it remains outside the trust, potentially requiring family members to navigate the probate process even when the senior has tried to avoid it. Mistakes in trust funding are one of the most costly estate planning mistakes that families face.
Talk to a Virginia Beach, VA, Estate Planning Lawyer Today
The Law Office of Angela N. Manz represents the interests of Virginia Beach residents looking to update or draft a comprehensive estate plan. Call our Virginia Beach estate planning lawyer today to schedule an appointment, and we can begin discussing your estate right away.