Using an online service to create your Will or Trust can be tempting. It can often be quicker and cheaper than hiring an attorney. However, a generic online Will or Trust can sometimes cause more harm than good, resulting in unexpected legal and financial burdens.
As an Elder Law and Estate Planning Attorney in Boston, Massachusetts, here are some things I recommend that you consider and pay attention to before purchasing an online Will or Trust:
1. Missing Critical Powers
Online Wills may lack essential clauses, leading to complications for your heirs. For instance, if your Will does not include powers for the manager (called the personal representative or executor) of your estate to sell real estate without obtaining a license from the Probate Court, if you own real estate, your beneficiaries may need to seek court approval to sell your property. Similarly, if your Will does not waive the surety bond requirement, your personal representative may have to sureties (similar to an insurance policy) on your bond, adding unnecessary costs and delays.
In some cases, online Wills do not give personal representatives the power to mortgage real estate, which can limit their ability to manage assets effectively.
2. Naming Multiple Executors
While naming two or more personal representatives may seem like a way to ensure fairness, it can lead to significant administrative challenges. Many banks won’t allow co-personal representatives to open a bank account. Disagreements between co-executors can slow down the process and lead to court involvement if they cannot work together. If you purchase an online will, be careful before appointing two personal representatives.
3. Trusts Require More Than Just Signing a Document
Setting up a Trust is not as simple as filling out an online form. After the Trust is created, your assets, like real estate and financial accounts, must be retitled in the name of the Trust. This step is called “funding the trust”. Many online services won’t provide clear instructions for completing these critical steps, leaving the Trust incomplete and ineffective.
Additionally, trusts involve tax considerations, and without the proper guidance, you could trigger income or estate tax consequences.
Massachusetts imposes an estate tax on estates over $2 million. For married couples, attorneys are often able to create trusts to minimize or avoid this tax. Most online trusts would not work in this situation. If you are not married and your estate is over $2 million, an attorney may be able to discuss ways for you to consider minimizing estate taxes, if you are concerned about this.
4. Documents Not Intended for Your State
I have seen cases where individuals purchased online estate planning forms that were not designed for their state. This can result in significant problems.
5. No Guidance for Beneficiary Designations or Titling of Assets
The title on a financial account or real estate determines whether your Will controls the asset at the end of your life. If you have established joint accounts, even if just for convenience, that account will pass to the joint owner upon your death.
Beneficiary designations determine the distribution of an asset, rather than what your Will says. If you do not have any beneficiary designation or the beneficiary designation states “to my estate”, then your Will controls the distribution of the asset.
Before using an online form, make sure you understand this. Otherwise, if your beneficiary designations are not coordinated with your Will or Trust, it could lead to an unintended distribution of an account.
6. Execution of the Document is Complicated
A Will or Trust must be signed, witnessed, and notarized in a specific way, otherwise it will not be valid. This can be tricky and attorneys will ensure this is done properly.
The Added Value of Working with an Attorney
Online Wills and Trusts may seem like a simple, cost-effective solution. In simple situations, this may work. However, they do not work for everyone, and may overlook essential details that are crucial for ensuring your wishes are followed. If you want to avoid leaving your estate plan to chance, working with an experienced estate planning attorney will give you peace of mind, knowing that your wishes will be honored and your legacy is preserved.
At Senior Solutions Attorneys at Law LLC, in Boston, MA, we have designed a system to help our clients in a convenient, cost effective way, with guidance and advice along the way to ensure your estate plan reflects your wishes and is properly executed. We also see this as the first step in building a relationship with you and your family as life circumstances change.
Senior Solutions, Attorneys at Law, is an Estate Planning and Elder Law firm serving the Greater Boston, Massachusetts area since 2001. We are ready to help you with Medicaid Planning, Estate Planning, Probate, Guardianship & Conservatorships, Special Needs Trusts, and Fiduciary Services. We are here to help. Please call our office at 617-489-5900 or schedule a brief free consultation (offered to new clients) by clicking: https://seniorsolutions.as.me/FreeConsult
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