Search “digital wills” or “online estate planning” and you’ll find numerous sites offering affordable DIY legal documents like wills, trusts, and healthcare directives. From LegalZoom® and Rocket Lawyer® to TrustandWill.com and FreeWill.com, these platforms present an appealing way to tackle estate planning without costly lawyer fees. But, is estate planning as straightforward as online tax filing? Are lawyers merely using the same forms found on these DIY sites?

AN INCONVENIENT TRUTH

DIY or online estate planning may seem convenient but can lead to costly errors. Remember, crafting “legal” documents doesn’t guarantee their effectiveness when needed. Without comprehensive understanding of family dynamics, assets, and legal processes at death or incapacity, DIY estate plans can result in severe blunders. Unfortunately, these mistakes surface too late, burdening your loved ones with a taxing, prolonged court process. Last week, we discussed the first two pitfalls of DIY estate plans. Today, we’ll explore the remaining three.

THE THIRD PITFALL OF DIY ESTATE PLANS – INCORRECT SELECTION OF EXECUTORS OR TRUSTEES

Under Illinois law, the parameters for selecting an executor, trustee, or financial power of attorney are more flexible. Unlike in some states, an executor in Illinois doesn’t need to be a family member or a state resident. However, the court may still require an executor’s bond, which can pose a challenge for those with less than stellar credit scores. This bond is like an insurance policy, ensuring the executor will carry out their duties responsibly. If your selected executor fails to obtain this bond, the court then assumes the responsibility to appoint an executor, which could lead to unforeseen or undesired outcomes, including the appointment of a costly professional.

THE FOURTH PITFALL OF DIY ESTATE PLANS- MISPLACED AND UNRECOVERED ASSETS

If your family isn’t aware of your assets and how to locate and access them, they might as well disappear after your passing. Your online will isn’t helpful in this situation. Over $70 billion in unclaimed property sits in U.S. State Departments of Unclaimed Property due to lost asset tracking after a family member’s death.

To prevent your assets from ending up unclaimed and landing in the Department of Unclaimed Property, it’s crucial to maintain an updated inventory of your assets. At Dracheva Law, we assist in creating and regularly updating a comprehensive asset inventory, ensuring the security of your assets throughout your lifetime.

THE FIFTH PITFAL OF DIY ESTATE PLANS – UNEXPECTED DISPUTES AMONG FAMILY MEMBERS

Family dynamics, especially in blended families, are intricate. DIY services may fail to anticipate and plan for potential conflicts among family members. However, we can navigate these complex emotional matters.

We’ve witnessed families torn apart due to poor estate planning, and others brought closer through proper planning. Effective estate planning can foster stronger family bonds, and our attorneys are specifically trained to facilitate this.

Our unique approach lies in preemptively mitigating family conflicts through careful estate planning, providing another compelling reason to work with us, instead of resorting to DIY planning documents.

THE KIND OF PLANNING YOUR FAMILY DESERVES

In estate planning, your legal documents’ efficacy heavily depends on a comprehensive understanding of your family dynamics, your assets, and how the law applies to your situation upon your death or incapacity. Simple fill-in-the-blank documents often fall short in addressing these complexities.

If the aim is to simplify things for your loved ones in your absence, a well-prepared estate plan that minimizes conflict and stress is necessary. This calls for a detailed inventory of your assets and ensuring they are titled correctly to avoid legal conflicts.

Involving family members in the planning process can be beneficial. They should understand your decisions and know what steps to take when the time comes. For parents of minors, it’s critical to have provisions in place to ensure your children are never placed into the care of strangers, even temporarily.

In addition to preserving and passing on tangible assets, the process should capture and record your family’s intangible legacy. This includes values, insights, stories, and mementos, offering a complete picture of your family’s heritage.

We capture and record your family’s legacy using a unique process known as a Family Wealth Legacy Interview, which is included with every estate plan we create.

LIFE & LEGACY PLANNING

Estate planning goes beyond preparing for one’s death and transferring assets—it’s about shaping a life you cherish and a legacy you are proud to leave through choices you make today. We have named this holistic approach to planning Life & Legacy Planning.

This approach encompasses educating and empowering you to make informed decisions for your loved ones and understanding what matters most to you. Since your plan aims to safeguard and provide for your family in the event of your death or incapacity, the planning process serves not only you but your entire family.

Life & Legacy Planning doesn’t stop at generating documents—it develops an enduring relationship with you and your family that extends beyond your lifetime, potentially reaching future generations.

While DIY might suffice for backyard projects, it falls short in estate planning. The question then becomes: are you ready to risk your family’s well-being and wealth to save on immediate costs? To truly protect those you care about, start your Life & Legacy Plan.