America has been undergoing a DIY craze where folks feel empowered to “do it yourself,” whether it comes to making fancy French pastries or major home improvements. But when it comes to estate planning, you should definitely think twice. This is not like going to Lowes or The Home Depot and asking some advice on tiling from a master carpenter. Estate planning involves many issues from taxation to probate concerns, especially here in Pennsylvania where the Commonwealth has rules and regulations that are frequently being updated and changed by courts, agencies, and legislatures. While the temptation may be great to DIY your estate planning, you should always consult an experienced Pennsylvania estate planning before you create or change any wills and trusts.
What are Some Pitfalls and Mistakes That Can Occur?
The internet is filled with free or inexpensive will and trust templates. For the cost of some paper and ink, or a nominal fee, you can create your own estate planning documents. However, when it comes to estate planning, the phrase “you get what you paid for” is often very true.
When you download these forms, there is no way to know if they are up to date. Whether you are creating a will, trust, power of attorney or other important estate planning document, it is vital that you use a form that is current. If you use an outdated form, you run a real risk of having a document that will not be effective when it is needed. In addition, if you don’t update these documents, you may end up not covering changed circumstances or including new assets.
It is important that your estate plan be complete and accurate. However, when you do this yourself, you may miss some important items. This can cause problems for your heirs and beneficiaries. Similarly, using the wrong forms can also lead to issues with your estate.
There are other issues that you may not be aware of when creating your estate plan. For example, Pennsylvania law differentiates between probate and non-probate assets. You need to make sure these two types of assets are properly addressed. If not, you can end up with a failure to coordinate between the beneficiaries under things like life insurance and retirement plans, and the heirs designated in your will.
Finally, many people who create their own estate planning documents don’t understand the tax ramifications of the plan. Not only will they miss out on many ways to structure an estate to maximize the tax benefits, but could end up leaving their heirs and beneficiaries with liabilities and an inability to pay them because they lack liquid assets.
Why is it Important to Hire an Estate Planning Attorney?
An experienced estate planning attorney can be a major asset when you want to draw up a will, create a trust, or do anything else to plan for providing for your loved ones when you are gone. The attorney can use his or her legal expertise to make sure your estate plan is legally sound, complies with Pennsylvania law, and is tailored to meet your needs and desires.
Estate planning is a complex matter, involving the coordination of various documents, different family needs and dynamics, and disparate treatment for different kinds of assets. No two estates are identical, and there is no way for a generic, DIY plan you find on the internet to address these matters.
It is crucial to make sure beneficiaries and heirs are properly designated, and that you choose a trustee or executor who will fulfill your wishes. An experienced attorney can help you choose the right person, while also knowing to designate substitute trustees and executors in case the person you originally designate is unwilling or unable to complete the task.
Hiring an estate planning attorney will give you other benefits as well. This professional will help structure your estate to minimize estate taxes, taking into account the effect of federal and state taxation rules on your estate. He or she will also work to use estate planning to shield your assets from your creditors, as well as those of your prospective beneficiaries. Finally, an attorney will make sure to regularly update your estate planning to reflect changing circumstances in your life, whether it involves a new child or grandchild, a prospective heir who has special needs, or the acquisition of a new asset that needs to be addressed. Doing it yourself leaves it to chance and increases the probability that your estate will have problems down the road.
Contact an Estate Planning Attorney Today
Before making the mistake of trying to DIY your estate planning, call us at Jones, Gregg, Creehan & Gerace. Our experienced estate planning attorneys will help craft an estate plan that fits your specific needs and desires, while avoiding all of the pitfalls and mistakes that often plague DIY efforts. Call us today for an initial consultation.