DIY Estate Planning: Is It a Good Idea?
You’ve worked hard all your life to build your business and support your family, and now it’s time to start thinking about your future. If money is tight, it may be tempting to cut costs. However, estate planning is one area where you want the best representation you can find. If you’ve found various estate planning documents online—for example, a template for a simple will or DIY kits for setting up a living trust—it might seem like a convenient way to save your money.
However, DIY estate planning often creates much more significant problems than the ones it solves. You might have one wrong word, an outdated form, or a missing signature. This can lead to probate litigation, family disputes, and major delays in the process. This could leave your loved ones picking up the pieces.
Regardless of what stage of your life you’re in or how much money you’ve managed to save, your estate plan should protect what matters most to you. If you try to plan your estate on your own without the proper legal guidance, you can run into several serious legal problems. Below, we’ll discuss those problems in more detail.
You could miss key legal requirements
The State of Virginia has specific rules concerning wills, trusts, powers of attorney, and the rest of your estate planning documents. If your documents don’t match Virginia’s requirements, the courts may ignore them completely. For example:
- A will must be in writing, signed by the testator, and witnessed by at least two individuals who are of sound mind and present at the same time ( Code § 64.2-403).
- Your power of attorney must comply with the Uniform Power of Attorney Act, or it will not be accepted by financial institutions ( Code § 64.2-1601).
- Advance medical directives are required to meet the format and witness requirements under Code § 54.1-2983.
If these documents lack the proper language, they could be rejected when you need them the most.
Online templates will not fit your unique circumstances
DIY estate planning kits rely on generic forms that won’t take your personal or business needs into account. These are cookie-cutter documents meant for laypeople. They generally ignore important matters such as:
- Ownership of trust assets or real property in several states
- Complicated business transactions and operational agreements
- Guardianship needs for minors and elder care planning
- The difference between revocable and irrevocable trusts
- Beneficiaries who have disabilities
If you’re a business owner in Virginia Beach who owns rental properties in a neighboring state and your will doesn’t coordinate with your business succession plan or account for property laws in multiple jurisdictions, your family might face a multi-state probate process that could drag on for months.
The same thing applies to those who have adult children from a previous marriage or those who want to protect a child’s inheritance from creditors. Unfortunately, your one-size-fits-all template will completely fail to account for nuances in your estate plan.
Talk to a Virginia Beach Estate Planning Lawyer Today
The Law Office of Angela N. Manz represents the interests of Virginia Beach residents who want to plan their estates. Call our Virginia Beach estate planning lawyers today to schedule an appointment, and we can begin discussing your next steps right away.
