Why “Do-It-Yourself” Estate Planning Can Cost You More Than You Think
Let’s be honest—there are plenty of things you can do yourself with the help of the Internet: change a tire, fix a leaky faucet, maybe even tile a backsplash. But some things—like performing your own appendectomy or crafting your own estate plan—are better left to the professionals.
Yes, we know that with enough research, forms, and YouTube tutorials, it’s technically possible to draft your own will or trust. But just because you can doesn’t mean you should.
Here’s why DIY estate planning can backfire—and how small oversights can lead to big consequences for your loved ones.
1. Old Documents Can Create New Problems
Many DIY wills and trusts are based on outdated templates or laws. For example, if your estate documents were drafted before September 12, 1981, they might not take advantage of the unlimited marital deduction—a critical tax-saving strategy for married couples. That could mean your estate ends up paying unnecessary taxes after the first spouse passes.
2. Life Changes. Your Plan Should Too.
Families grow and change—marriages, divorces, births, adoptions, and deaths all happen. Unfortunately, outdated estate plans don’t automatically account for these shifts.
One real-life example: a couple with children from previous marriages adopted a baby but never updated their will. The result? Their adopted child was entirely left out of the estate. Mistakes like these are heartbreakingly common in DIY plans.
3. Missing or Misused Powers of Attorney
As people live longer, the likelihood of needing help with financial or medical decisions increases. Powers of attorney (POAs) allow someone you trust to act on your behalf if you're incapacitated—but only if they’re correctly drafted and up to date.
Without proper POAs:
- You may be subject to costly, court-appointed guardianship.
- Your loved ones may struggle to access retirement funds, pay bills, or make health care decisions for you.
- Critical opportunities for long-term care planning and tax savings could be lost.
4. Beneficiary Designation Mistakes
Even the best-drafted will can’t fix bad beneficiary designations. Life insurance policies, retirement accounts, and annuities all pass outside your will—and mistakes here can cause chaos.
Common issues include:
- Naming an ex-spouse as the beneficiary (yes, it happens more than you think).
- Failing to update plans after job changes or marriage.
- Naming your estate as the beneficiary of a retirement account, triggering unnecessary taxes that a named individual could have deferred.
5. Last-Minute Gifting Mishaps
Yes, you can gift up to $19,000 annually (or more, adjusted for inflation) without tax consequences. But beware: if you’re writing checks on your deathbed, those gifts only count if the checks clear before you pass away. Better alternatives? Wire transfers or certified checks—details a professional will walk you through.
The Bottom Line
There’s a reason estate planning attorneys exist—and why their services are worth the investment. The risks of doing it wrong far outweigh the upfront savings of doing it yourself. When it comes to protecting your legacy and your loved ones, don’t gamble with guesswork.
Need Guidance With Your Estate Plan?
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Sheri Pan is a Registered Representatives with, and securities and Advisory services offered through LPL Financial, a registered investment advisor Member FINRA & SIPC. Financial planning offered through Pantheon Wealth Planning, a registered investment advisor and separate entity.
LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.