US News & World Report’s recent article entitled “6 Common Myths About Estate Planning explains that the coronavirus pandemic has made many people face decisions about their estate planning. Some will attempt a do-it-yourself solution. Internet DIY websites make it easy to download forms. However, there are many mistakes people make when they try do-it-yourself estate planning.
Here are some issues with do-it-yourself that estate planning attorneys regularly see:
You need to know what to ask. The challenge is sometimes not knowing what to ask or which option to choose. If you want to cover everything, and are not sure what everything is, a seasoned attorney can guide you.
Complex issues require professional help. Take a holistic look at your estate plan and look at estate planning, tax planning and financial planning together, since they’re all interrelated. If you only look at one of these areas at a time, you may create complications in another. This could unintentionally increase your expenses or taxes. Your situation might also include special issues or circumstances. A do-it-yourself website might not be able to tell you how to account for your specific situation in the best possible way. It will just give you a blanket list, and it will all be cookie cutter. You won’t have the individual attention to achieve your goals and priorities that you get by sitting down and talking to an experienced estate planning attorney.
Estate laws vary from state to state. State have different rules for estate planning, such as for powers of attorney or a health care proxy. There are also 17 states and the District of Columbia that tax your estate, inheritance, or both. These tax laws can impact your estate planning. Eleven states and the DC only have an estate tax (CT, HI, IL, ME, MA, MN, NY, OR, RI, VT and WA). Iowa, Kentucky, Nebraska, New Jersey and Pennsylvania have only an inheritance tax. Maryland has both an inheritance tax and an estate tax.
Setting up health care directives and making end-of-life decisions can be very involved. It’s too important to try to do it yourself. If you make a mistake, it could impact the ability of your family to take care of financial expenses or manage health care issues. Don’t do it yourself. Even the DIY estate planning websites typically warn consumers through disclaimers that their service is not a substitute for an attorney.
Reference: US News & World Report (July 5, 2021) “6 Common Myths About Estate Planning”
