You’ll find dozens of websites that let you prepare a variety of estate planning documents for very little money, and even for free. With so many do-it-yourself online document services out there, you might believe you can create your will online, all on your own, without paying a lawyer to help. And in some cases, you can create your will online.
But if you do, you need to understand how these services can backfire on you and your family. Online estate planning can be a catastrophe for those who aren’t aware of the risks. And as you’ll see, creating your will online without a lawyer’s guidance can even be worse for your family than if you’d done nothing at all.
01 – Will your online will keep your family out of court?
A will by itself won’t keep your family out of court. In order for assets covered by your will to be transferred to your beneficiaries, your will must first pass through the court process known as probate. During probate, the court oversees the administration of your estate and assets, ensuring your assets are distributed according to your wishes, while ensuring any creditors of your estate are paid, and managing any disputes that arise. Probate is lengthy, expensive, and open to the public, so you’ll want to have more than a will in place if you have any assets that would go through court in the event of your incapacity or death.
To avoid probate and keep your assets out of court, your will needs to be combined with other planning documents and important conversations as well. These documents include a properly drafted and funded trust, up-to-date and effective beneficiary designations, and you’ll also need to have conversations with family to ensure they won’t end up in conflict due to your lack of preparation. Beneficiary designations and trust planning can be complex, and if you have assets that would otherwise pass through the court process, it may be difficult to ensure you’re making all the right choices for your loved ones and your assets using an online document service.
02 – Is your online will’s execution legally valid?
Each state has specific laws stipulating how a will must be documented and signed to be legally binding. If you fail to execute your will in accordance with these laws, the court can deem your will legally invalid. If the court deems your will invalid, it’s as if the document never existed. In that case, a judge would name the person it considers is best to handle your estate, and your assets would be distributed according to state intestacy laws, which typically give priority to your closest living blood relatives.
If you want to ensure your online will is legally valid, you can look up your state’s laws governing the valid execution of a will. From there, make certain you sign it properly, with the right number and type of witnesses.
03 – Does your online will properly name an executor?
The last question to consider is whether the will properly names an executor, along with back-up executors, and it ensures that those you name will be appointed by the court in the event of your death.
An executor, also called a “personal representative,” is the person responsible for carrying out the instructions in your will. Your executor is typically named in your will and appointed by the court to locate and manage your assets, pay any outstanding debts and taxes you owe, and distribute your remaining assets to your beneficiaries.
If you don’t name an executor in your will, or the person you choose is determined to be unfit, the court will appoint an executor for you. As an example of how things can go wrong here, one common situation in which a named executor can be determined to be unfit is if your will doesn’t waive the requirement for the executor to obtain a bond, and your named executor cannot qualify for a bond. This is a frequent mistake made by those who create their own will online.
If you’re unaware of these requirements when creating your online will, your chosen executor could be deemed unfit, leaving the choice up to the court.
The Professional Support You Deserve
Rather than relying on a one-size-fits-all document service, meet with us to create your will and other estate planning documents. Our process is specifically designed to put in place the right combination of planning solutions to fit with your unique asset profile, family dynamics, budget, as well as your overall goals and desires. Until then, if you need to get your plan started or need us to review your existing documents, contact us today.
AB Law, PLLC is a full-service business law and estate planning firm that serves clients throughout Texas. All consultations are free and no question is too silly, ridiculous, or complex. https://calendly.com/ablawpllc www.ab-firm.com