Estate Planning Attorneys vs. DIY Estate Planning Services
Estate Planning Attorneys
Estate planning attorneys specialize in creating and implementing strategies to protect and manage assets during life and upon incapacity and distribute assets upon a person’s death. Their expertise lies in navigating complex legal processes, addressing potential transfer tax issues, ensuring the estate plan complies with state law, and taking advantage of transfer tax planning opportunities. Some key advantages of working with an estate planning attorney are:
- Legal Expertise and Customization
One of the primary benefits of hiring an attorney is their legal expertise. They can provide personalized advice tailored to your specific circumstances, factoring in family dynamics, transfer tax implications, and asset protection. Attorneys can draft comprehensive estate planning documents, including wills, trusts, powers of attorney, healthcare directives, and more, so wishes are accurately reflected and legally enforceable. They can also assist with transfer tax mitigation and charitable planning opportunities.
- Guidance Through Complex Processes
Navigating the intricacies of estate planning can be daunting, especially for individuals with significant assets or unique family structures. Estate planning attorneys offer guidance throughout the process, explaining legal concepts, clarifying options and misconceptions, and addressing client concerns and questions. They also assist with probate proceedings and trust administration.
- Relationship and Accountability
Attorneys are held to professional standards of ethics and accountability. They are to act in the client’s best interests and uphold confidentiality. Additionally, attorneys can review and update the estate plan to accommodate changes in the client’s life circumstances or legal requirements. They develop relationships with clients that can carry on through generations and are a resource to reach out to as circumstances change which require additional guidance.
The Appeal of DIY Estate Planning Services
Despite the advantages of working with an attorney, some individuals may prefer the convenience and affordability of do-it-yourself estate planning services. These online platforms or software tools offer templates and guidance for creating basic estate planning documents without the need for legal assistance. Some considerations for the DIY route are:
- Cost Savings and Accessibility
DIY estate planning services can be more affordable than hiring an attorney upfront, making them accessible to individuals with limited financial resources. By using online tools, the user can create essential documents such as wills and powers of attorney. The upfront affordability can be appealing.
- Convenience
With DIY estate planning services, the user has the flexibility to work on the estate plan at the pace and times which are convenient. These platforms typically offer user-friendly interfaces and step-by-step instructions.
- Limitations and Risks
While DIY estate planning services offer convenience and upfront cost savings, they may not provide the same level of legal expertise and customization as working with an attorney. Template-based documents may overlook important legal nuances or fail to address unique aspects of the situation, potentially leading to unintended consequences or disputes down the road. This can result in legal fees to resolve what could have otherwise been avoided. Moreover, without the guidance of an attorney, the user may be unaware of alternative planning strategies or legal requirements specific to one’s own jurisdiction. Addressing blended families, separate and community property, unique beneficiary concerns, and the coordination of non-probate and probate assets are outside the scope of most DIY estate planning services.
Making an Informed Decision
When it comes to estate planning, there is no one-size-fits-all solution. The decision to hire an attorney or use a DIY service depends on various factors. This includes the complexity of the estate and family situation, the unique needs of the beneficiaries, the impact of transfer taxes, the desire to develop a relationship that can continue to be an ongoing resource, and ultimately the desire for more than just documents. While DIY services offer affordability and convenience, they may not adequately address the user’s particular situation.
Ultimately, estate planning is about more than just drafting documents. By consulting with an experienced estate planning attorney, there is peace of mind knowing the estate plan is thorough, legally sound, and tailored to the client’s unique circumstances.
Article by Mindi B. Zanowiak
Sprouse Shrader Smith PLLC
Posted April 15, 2024
