Many people wonder, “Can I do my own estate planning?” It’s a valid question, especially if you’re looking to save money and avoid attorney fees.
The short answer is yes, it’s possible. But, while “Can I do my own estate planning?” is a common query, there are compelling reasons to consider professional help, like an estate planning attorney in Greensburg.
The Problem with DIY Estate Planning
Do-it-yourself estate planning options are readily available online. But, should you really handle your estate plan as a solo project?
We have seen many families deal with the aftermath of a poorly constructed or incomplete DIY estate plan. This can often lead to those families having to spend even more time and money than if they had worked with an experienced estate planning lawyer to begin with.
The Dangers of Incomplete or Poorly Constructed Plans
Many self-made plans often don’t cover essential needs. Then, when it counts the most, the estate plan doesn’t work as intended. A plan that is incomplete or poorly constructed can lead to a range of problems, including:
Overlooked Assets
A plan has to account for your business and all financial documents. It is easy to get caught in common “traps,” such as:
- Not properly accounting for beneficiary designations on retirement accounts or insurance policies.
- Failing to consider the implications of business ownership or partnership agreements.
- Omitting assets, such as real estate, that require special handling.
Invalidating Provisions
Changing the DIY paperwork after signing could be costly. Altering details might make the legal document useless. Crossing things out might even invalidate a critical provision of the document, leading to:
- Unintended consequences, such as disputing family members or unnecessary taxes.
- Delays in the distribution of assets, leaving loved ones without the financial support they need.
Special Considerations
Assets such as IRAs need special consideration and require careful estate planning. Most people don’t realize that insurance policies may also be impacted by this, too. Many DIY estate situations assume homemade documents dictate where assets will go after someone passes, but this is not always the case.
- IRAs and Retirement Accounts: Failure to properly plan for IRAs and retirement accounts can result in:
- Unnecessary taxes and penalties.
- Loss of tax-deferred growth.
- Inadequate income for beneficiaries.
- Insurance Policies: Insurance policies, such as life insurance and annuities, require careful consideration to avoid:
- Unintended beneficiaries.
- Tax implications.
- Inadequate coverage.
The Risks of DIY Estate Planning
Beyond these challenges, creating your own estate plan can be risky due to several common pitfalls, including:
- Lack of legal expertise.
- Incomplete or outdated information.
- Failure to consider state-specific laws and regulations.
Don’t risk your family’s future by attempting to create a DIY estate plan. Instead, work with an experienced estate planning lawyer in Greensburg to ensure your plan is comprehensive, legally sound, and tailored to your unique needs and goals.
Why You Might Need More Than Just a Will
A will seems important in estate planning, but a professional, comprehensive estate plan is needed for it to be effective. Simple plans, including wills, exist. But they are deeply connected to your personal life changes, like inheriting something of value or the birth of a child.
Many websites show easy steps for creating estate planning documents. But, they lack specific legal advice. It’s not likely an online provider is familiar with specific estate laws in Pennsylvania or even Westmoreland County.
Your will could quickly become declared invalid if these laws are not followed. Without professional advice, your future wishes could remain uncertain.
Are DIY Estate Plans Actually Legal?
The answer might surprise you. The legality of a do-it-yourself estate plan depends on how thorough it is. Even for simple cases, meeting all legal requirements can be tough.
Some do-it-yourself estate documents might work; others may not work at all. DIY options are often improperly executed.
Following rules is critical to getting things signed correctly. Each state has requirements for signing key estate planning documents, like health care proxies and durable powers of attorney.
What’s Required in Pennsylvania?
Pennsylvania estate law has key requirements for drafting and signing all types of documents, including:
Wills
- The will must be in writing and signed by the testator (the person making the will).
- The testator must be at least 18 years old and of sound mind.
- The will must be signed in the presence of two witnesses, who must also sign the will.
- The witnesses must not be beneficiaries of the will.
Health Care Proxies
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The health care proxy must be in writing and signed by the principal (the person granting the proxy).
- The principal must be at least 18 years old and of sound mind.
- The health care proxy must be signed in the presence of two witnesses, who must also sign the document.
- The witnesses must not be beneficiaries of the health care proxy.
Other Documents
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Powers of attorney, living wills, and other estate planning documents also have specific requirements in Pennsylvania and you should check with an estate planning attorney before creating these documents on your own.
State-Specific Requirements
Different requirements apply in different states, so DIY methods need to vary based on location. What works in one state may not work in another. It’s essential to understand the specific laws and regulations in your state to ensure your estate plan is valid.
The Importance of Professional Advice
While you might ask, “Can I create a living trust by myself?” remember, no two estate plans are identical. Getting professional advice from an experienced attorney, like our attorneys at Bumbaugh | George | Prather | DeDiana helps you find the right path. Our experienced estate planning lawyers can:
- Guide you through the complex legal requirements in Pennsylvania.
- Help you identify your unique needs and goals.
- Create a customized estate plan that meets your specific circumstances.
- Ensure your documents are legally sound and valid.
Don’t risk your estate plan being invalid or incomplete. Consult with an experienced estate planning lawyer to ensure your wishes are respected and your loved ones are protected.
The Value of Expertise
Attorneys spot details you might miss. Doing it right avoids bigger legal issues down the road. A correctly prepared estate plan provides reassurance during challenging life situations.
Attorneys personalize planning documents just for you. Estate planning lawyers customize plans to meet specific needs. For blended families or a disabled child, legal assistance is very helpful.
Specific Challenges to Consider
Consider special beneficiary designations, like those for a special needs child, or how you want to distribute assets, like real estate. A skilled planning attorney will simplify all your needs and wishes, providing clear direction. Your estate planning lawyer knows the crucial steps.
Having all steps correctly followed removes doubts. Here’s what a typical estate plan should include:
| Document | What It Does |
|---|---|
| Will | Specifies who inherits your assets and allows you to name a guardian for minor children. |
| Living Trust | Manages and distributes your property, bypassing probate while providing control. Can establish trust fund. |
| Durable Power of Attorney | Chooses who will manage your finances if you become incapacitated. Allows chosen person to pay bills and govern assets. |
| Health Care Proxy | Appoints someone to make medical care decisions for you if you’re unable to. |
| Advanced Health Care Directive | Details your preferences for medical care and end-of-life treatments. |
| Beneficiary Forms | Ensures financial accounts, like bank accounts and retirement funds, are distributed as you intend, often avoiding probate. |
| Letter of Intent | Provides additional context and understanding of your plan for your heirs and executors. Can include specific planning questions and wishes. |
Having all of these estate planning documents correctly prepared is essential. Experienced estate planning lawyers advice is extremely important for every part of estate planning.
FAQs About Can I Do My Own Estate Planning
What documents do I need if I am doing my own estate planning?
These are legal tools you create yourself to manage how your assets will be distributed after your death. Documents can be items such as: living trust, wills, durable powers of attorney, and health care proxies.
What is the 5 by 5 rule in estate planning?
This rule allows a beneficiary to withdraw the greater of $5,000 or 5% of the trust assets annually. This gives the beneficiary limited access to funds without incurring heavy taxes, and provides some control over their inheritance.
What are the risks of DIY estate planning?
DIY estate planning can lead to invalid documents. There is a good chance you’ll have mistakes in documents. Mistakes may lead to family disputes and increased legal costs to resolve, so you want to ensure everything is correct.
Can you do estate planning without being an attorney?
Yes, the average person can create estate planning documents without an attorney. However, given the risk of legal issues, seeking professional advice offers greater peace of mind and ensures a valid and effective plan. It may be a good idea to get an estate planning consultation from an estate lawyer, even if using DIY legal resources.
Conclusion
Creating an estate plan shows responsibility. However, it’s vital to ensure the plan creates a secure future for your loved ones. Partnering with an experienced estate planning attorney offers confidence and clarity.
In answering the key question, “Can I do my own estate planning?”, it’s clear that while possible in some situations, working with someone who understands the legal system provides significant value. A planning attorney can offer additional guidance to navigate complex matters, minimize potential problems, and ensure your wishes are accurately and legally fulfilled.
