If you make a Do-It-Yourself (DIY) estate plan, you miss out on advice for many important things.
Is your estate plan valid?
State laws can differ, so you need to make certain you follow Maryland rules. Buying a DIY will kit online or otherwise trying to make a DIY estate plan is not necessarily going to ensure your documents are valid, since you may not know or understand the intricacies of the laws in Maryland. There are also execution and witness requirements, which may be hard to obtain if you only have a DIY will kit.
Power of attorneys
Making an estate plan is not just about a will. You may also need to do other things, like creating a power of attorney in case of incapacity or Medicaid planning to protect assets so you don’t spend down your wealth if you need to go into a nursing home.
A death can sometimes trigger estate tax, which affects your ability to leave a legacy. An experienced attorney can help you to evaluate whether estate taxes are an issue in your situation. If so, your attorney can help explore ways to avoid tax assessment on the wealth you leave to your loved ones when you pass away.
The implications of your estate plan
Leaving assets to your loved ones in a DIY will can have important implications of which you may be unaware. For example, if you were to leave money to a relative with a disability, you could cause a loss of access to government benefits. You wouldn’t necessarily know this if you were not guided by an estate planning attorney who could explain the potential consequences of each decision you make.
This is just the tip of the iceberg when it comes to all of the possible downsides to making a DIY estate plan. In addition to missing out on the sound legal advice you need to make a solid estate plan, you take the risk of your wishes not being respected during end-of-life issues or transfer of assets after death. If your estate planning tools aren’t enforceable because you did not follow the proper processes for creating these essential legal documents, default rules will apply.
In this instance, under the default rules, your estate will be distributed according to intestacy law. If you become incapacitated, the court will consider Maryland laws on guardianship to determine who to appoint as guardian if you need one. You will have lost any sense of autonomy and all control over your future and will simply be left with Maryland laws dictating what happens to you, your assets, and the people you love.
For more information, visit SinclairProsserLaw.com.