Simple Wills: Why Can't I Just Use the Internet?

July 2010

Online "will kits" or computer programs that produce estate planning documents are popular because they're cheap. However, in many cases, in saving money now, people risk subjecting their survivors to unnecessary legal fees to fix what often turn out to be useless documents.

These programs cannot perform a detailed legal analysis of a user's true estate planning needs. They also don't address crucial planning issues, such as if a child has problems with debt, is anticipating a divorce, or has special needs.

Estate planning attorneys generally have detailed discussions with clients about their financial situation, goals and family relationships, and they do not sell "cookie-cutter" planning documents. They customize estate plans to meet each client's unique goals and needs.

Here's a short list of "why nots" on the risks associated with will and trust kits:

Varying State Laws. Most estate planning kits don't address variations in state law. Since there is not a national probate code, no computer program or website can replicate the knowledge of a qualified estate planning attorney who knows the intricacies of state law. What might be allowed in one state might not be allowed in others.

Unintended Results. Using a do-it-yourself will or other estate planning kit may have undesired consequences. Defective forms or violations of state law are not apparent to most people when their documents are signed. It might be only after a death when such problems are discovered, which is too late to revise documents. Survivors may find that a will devised from a kit does not accomplish what the deceased wanted, and the local courts won't allow changes after the maker of the will has passed away.

Complexities of Blended Families. Many individuals have been married more than once, or they've had more than one relationship that produced children or brought with it step-children. When parents draft do-it-yourself documents leaving an estate to their "children," legal chaos can ensue. It often takes a court to sort out what a parent actually wanted to accomplish. Did he want to leave his property to his entire extended family (stepchildren included), or merely to his biological children?

Special Rules for Special Needs Children. An entire category of trusts is designed to work within the complex rules and restrictions of government-managed disability benefits. Once again, do-it-yourself estate planning plans don't account for these special rules. An improper distribution from a parent's estate plan could result in a child’s loss of disability benefits, health insurance, educational benefits or an assisted living arrangement. It can also mean the disappearance of the child's inheritance due to mismanagement or someone taking advantage of the child.

Avoid the Trap. An estate planning attorney can save you from the trap of a do-it-yourself estate plan. Will and trust kits can seem like a great bargain, but the eventual cost for your family could be quite high. The old adage really is true — you get what you pay for.

Adapted from the Daily Plan-It newsletter.

Hoopes, Adams & Alexander, PLC, is a Chandler, Arizona, law firm offering services to Phoenix-area clients in the areas of estate planning, entity formation, commercial and real estate transactions, and civil litigation.