The internet is a wonderful information sharing tool. The ability to easily research nearly any topic enabled me to fix my dishwasher and make other repairs that I would not have known how to do without the internet. Unfortunately, this access to information promotes people people falling into the trap of thinking it is simple to create vital estate planning documents themselves.
A great example of a document that seems simple to create is a Will. Recently I posted about the importance and urgency of getting a will, but a Do-It-Yourself Will (DIY) is not the way to go in all but the most simple situations. Even then, I urge you to think twice.
A great example of a document that seems simple to create is a Will. Recently I posted about the importance and urgency of getting a will, but a Do-It-Yourself Will (DIY) is not the way to go in all but the most simple situations. Even then, I urge you to think twice.
You might think you can never go wrong if you just strictly follow
an online format or an example of a will from the internet, but many
people have tried going this path and ended up risking their assets and dragging
their family into a winding legal battle.
If you are thinking about what the dangers of DIY
wills could be, here are a few real life examples. Author Deborah Jacobs called them “DIY horror stories” in her article The
Case Against Do-It-Yourself Wills:
#1 Charles Kuralt,
the CBS News correspondent and anchor
“Several weeks before he died in
1997, he penned a note to Patricia Elizabeth Shannon, his mistress for 29
years, promising to leave her 90 acres and a renovated schoolhouse near the
Montana fishing retreat where they spent time together.
After Kuralt’s death, his family and Shannon spent six years in
court fighting over whether this note was a valid amendment to the 1994
will that a lawyer had prepared, or simply a promise to revise the document–a
promise that Kuralt never carried out. Without ruling on this issue, a Montana court awarded Shannon the $600,000 property
but stuck Kuralt’s family with all the estate taxes.”
#2 Wealthy Texan
“A wealthy Texan who tried to save
a few bucks wound up forfeiting his $3.5
million federal estate tax exemption. Using a form he copied from a library book, this guy cobbled together a will,
leaving everything–a cool $7 million–to his wife. There was no estate tax due
at that point because assets left to a citizen spouse (or to charity) generally
aren’t subject to the tax. But anything left when she died, less her own
exemption amount, could be taxable as part of her estate.
To fix the problem after the
husband died, William Wollard, a lawyer with his own practice in McKinney,
Texas, recommended the wife disclaim (or
turn down) the entire $3.5 million exemption amount, allowing it to pass
under state law, estate-tax free to the couple’s three adult sons. The assets
she chose to disclaim were most of the ranch land the couple owned, and a large
sum of cash.”
#3 Father Estranged From His Son
“Dad bought DIY will software from
a big-box store and, following the prompts, listed his assets, but omitted some
important ones: small numbers of shares of various phone company stocks that he
had bought many years earlier. Those shares, which probably once seemed like
tiddlywinks, had burgeoned in value because of mergers and stock splits and
were worth more than $1.5 million, comprising most of Dad’s estate, by the time
he died.
Unfortunately, the DIY will did not include what’s called a residuary
clause–indicating how to distribute what is left after estate expenses,
creditors and taxes have been paid and gifts of specific items or sums of money
have been satisfied. So guess what happened? The stocks passed according to
the law of intestacy, and the son, who
the father wanted to disinherit, walked away with almost $400,000. To make
matters worse, he had a substance abuse
problem and blew through the money in less than a year."
I could go on with many more examples, but the point is that a DIY will is often a disaster waiting to happen. An online DIY
will package or a library template cannot and will never be able to properly
replace having an experienced legal expert to set up your will and other critical estate planning documents.
If the people in the stories above had only hired a lawyer, they
could have had better estate planning that would have honored their wishes and made
it easier to their family and loved ones.
Should having a DIY will ever cross your mind, remember that
Timothy E. Kalamaros, a lawyer with his own practice in South Bend, Ind. Compared
DIY wills to “pulling your own tooth with a pair of pliers instead of going to
the dentist.” Yikes!
Golowin Legal, LLC helps create Wills and comprehensive Estate Plans in Columbus, Dublin, Upper Arlington, Hilliard and the central Ohio area. If you or a loved one needs assistance
in setting up will or trust, call us at (614) 453 5208 today. Visit our website for more
information on Wills
and Estate Planning Documents.
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