Problems Caused by Do-It-Yourself Wills

Despite the importance of drafting a will, an astonishing amount of people have not done so. Possibly even worse is drafting a do-it-yourself (DIY) will rather than seeing an attorney. Here are just a few things that can go wrong with DIY wills:

• For large estates, DIY wills can prevent you from utilizing your estate tax exemption.
• If a DIY will doesn’t have a residuary clause, assets can end up in the hands of a relative that the decedent intended to disinherit.
• Typographical errors not caught by DIY programs can lead to a sister receiving $200 rather than $200,000 or to a brother being appointed as executor rather than a mother.
• DIY wills don’t tell you your state’s execution requirements. If the state laws are not complied with, the will can be totally thrown out, or a beneficiary could be disqualified from inheriting.
• DIY wills don’t mention whether or not your state has an onerous probate system. Depending upon which state you live in, a living trust may be the preferred method for transferring assets.
• DIY wills do not coordinate your nonprobate assets with those covered in the DIY will.

For detailed examples of DIY will horror stories, see Deborah L. Jacobs, The Case Against Do-It-Yourself Wills, Forbes, Sept. 7, 2010.