Top 5 Mistakes with Do-It-Yourself Wills
The internet is overflowing with websites and software programs which promise to create a legal, airtight will. All you need to do is enter some basic information and the program will spit out a ready-to-use will that stands up in court.
Sounds easy, right?
Actually, there are major risks with any DIY will writing program or software. Instead of risking your family’s future, call Cavallo & Cavallo to speak with a Bronx wills lawyer. Below, we highlight 5 mistakes people make when relying on computer programs to create estate planning documents.
You Disqualify Disabled Beneficiaries from Government Benefits
Taking care of your family is the primary reason people create an estate plan. Unfortunately, by leaving assets to a disabled individual, you could disqualify them from critical government benefits or services.
For example, many programs are means-tested. An applicant cannot have too many assets or an income over a certain threshold. If they do, then they are disqualified.
Don’t leave assets to a disabled loved one, which could end up costing them valuable government benefits. Call our office so we can create a different vehicle for providing for them (like a special needs trust).
You Forget Assets
A lawyer can help clients think through all the assets they own so they can create an intentional estate plan. Generally, people make gifts in a will in the following ways:
- You leave a specific asset to an individual, such as leaving your house to your sister.
- You divide cash or other assets between two or more people.
If you don’t name a beneficiary, then the asset passes to your residuary beneficiary, who might not be the person you want inheriting something. Let’s talk about your estate and determine who will inherit from you.
You Make an Unequal Division of Your Estate
Not everyone wants to make an equal division. But if you do, then you need to account for non-probate assets which won’t be passed through a will:
- Life insurance proceeds;
- Jointly owned assets;
- Retirement accounts with a beneficiary on the policy;
- Payable on Death (POD) accounts.
Imagine you name your three children as equal beneficiaries under the will, but your eldest gets the retirement accounts and life insurance on top. You have failed to make an equal division of your estate.
You Fail to Create a Valid Will
New York has requirements for a valid will. We can’t guarantee a computer program will follow the requirements.
Your Choice of Executor is a Mistake
The executor shepherds your estate through probate and handles litigation on behalf of the estate. This person has critical duties. They should be diligent, thorough, and detailed. They also should not cause unnecessary drama with family. Choose the wrong executor, and you will create stress for your family and possibly reduce the value of the estate. A computer program cannot help you identify an acceptable person to serve in this important role.
Call Our Office Today
By using a computer program, you might save some money—while creating major headaches for your loved ones. Create a will the right way by reaching out to Cavallo & Cavallo to speak with a Bronx wills attorney.
Source:
nysenate.gov/legislation/laws/EPT/3-2.1
