The Dangers of DIY Estate Planning

While it may be tempting to save some money and plan your estate by yourself, it may not be a good idea. Estate planning is full of small details that the average person just doesn’t know about, but someone trained in estate planning will. For this reason, it almost always makes sense to get professional help from a lawyer or financial advisor for all your estate planning needs — otherwise, you could make some costly mistakes. While everyone can benefit from estate planning, DIY estate planning is an especially bad idea if the estate in question is going to be worth more than the estate tax exemption, which sat at $13.61 million in 2024 and has risen to $13.99 million for 2025.

For help finding someone to help you with estate planning, consider talking to a financial advisor who specializes in this particular area of planning.

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What Is an Estate Plan?

The first thing to know about estate planning is that there isn’t a single document known as an “estate plan.” Rather, an estate plan is an idea of what you want to happen to your money and other assets after you die, and it is made up of a collection of documents that create the legal directives needed for those wishes to be carried out.

Many of these documents take a bit of know-how to get right. They often vary based on the state you’re living in, and getting the details right is important. If you don’t know what you’re doing, there stands a good chance you’ll mess something up and leave a lot of issues for your family to clean up after you are gone.

Elements of an Estate Plan

Estate planning involves several key documents that work together to outline your wishes and ensure they are legally enforceable. Each component plays a specific role in protecting your assets, providing for your loved ones, and minimizing potential conflicts or legal challenges. Below is a list of the most common components found in a well-rounded estate plan:

Last will and testament: Details how your property and possessions will be allocated after your death and includes the option to name a guardian for young children.
Living trust: Helps manage and distribute assets while avoiding probate, offering privacy and efficiency.
Durable power of attorney: Names a person whom you trust to make financial and legal decisions on your behalf, even in the event of incapacitation.
Healthcare proxy or medical power of attorney: Appoints someone to make healthcare choices on your behalf if you’re incapacitated or unable to communicate.
Advance healthcare directive: Details your preferences for end-of-life medical care, including life-sustaining treatments.
Beneficiary designations: Ensures financial accounts, retirement plans, and insurance policies go directly to named individuals.
Letter of intent: Provides additional guidance for your family or executor regarding your personal wishes, though it is not legally binding.

Risks When Creating a Will

If you ask most people about what they need to have to take care of their estate, they’ll say “a will.” A will is a legal directive that spells out what you would like done with your estate after you pass away. There are lots of apps and websites that will guide you through the process of creating a will. In some cases, a DIY will is a cost-effective means of bequeathing your possessions to one or two people with little fuss.

However, as your estate increases in size, the value of assets increases and the number of people and contingencies increase as well, it might become a bit overwhelming. In that case, it’s best to turn to a professional. This is especially true if you have minor children whom you wish to provide for.

Another thing to keep in mind is that a will needs updating. If you have kids, get married or divorced, or come into a large sum of money or valuable asset, you’ll need to adjust your will to account for the change. Having a professional available to help you make these changes is going to make your life a lot easier in the long run.

Risks When Creating Your Own Trust

A trust is a legal document that passes assets to a beneficiary. Unlike a will, trusts can have conditions attached to the bequest, such as disbursing the funds over time or after the beneficiary reaches a certain age. Trusts can be revocable, which means you can change your mind, or irrevocable, which means you can’t.

There are tax advantages to irrevocable trusts for estates over a certain size. Trusts also have the advantage of not usually being subject to probate court. While perfectly legal and sound, trusts can be done DIY. The many options, however, mean you need to do some serious homework before you proceed.

For most people, that homework is going to prove to time-intensive and detail-oriented to do correctly, which can have big consequences in the long run. Once again, the best course of action is likely to get help from a professional to establish trust and place the correct assets in them.

Other Dangers of DIY Estate Planning

DIY estate planning may appear simple, but it often misses crucial legal, financial, and family complexities. Without professional guidance, errors can lead to disputes, invalid documents, or missed tax-saving opportunities.

Legal Complexities and Errors

Estate planning laws differ widely by state and are often intricate. Missteps, such as improper execution of documents or failure to meet legal requirements, can render a will or trust invalid. These issues frequently lead to costly and time-consuming probate proceedings, leaving heirs to navigate a legal maze. For example, a missing witness signature might seem trivial but can invalidate an entire will, causing significant delays and disputes.

Professionals provide tailored advice that ensures compliance with state laws, reducing the likelihood of such errors. By contrast, DIY templates often offer a one-size-fits-all approach, which can overlook critical details.

Overlooking Family and Financial Nuances

DIY estate plans rarely address complex family dynamics or financial arrangements. Blended families, dependents with special needs or unique financial structures often require customized solutions that templates cannot provide. For instance, without proper provisions, a child from a previous marriage might unintentionally be excluded from inheritance, leading to disputes and unintended consequences.

Additionally, specialized needs, such as trusts for minor children or dependent relatives, demand expertise that DIY methods lack. These gaps can result in inequities or financial hardships for beneficiaries.

Tax Implications and Missed Strategies

One of the most overlooked aspects of DIY estate planning is tax management. Improperly drafted documents can lead to unnecessary estate, gift, or income taxes for heirs. For example, failing to correctly fund a trust or align it with current tax laws can negate intended benefits, diminishing the estate’s value.

Moreover, advanced strategies like irrevocable trusts, charitable giving or asset protection require nuanced planning. These approaches not only safeguard assets but also provide potential tax benefits that DIY solutions rarely address.

What You Can Do DIY

Some estate documents can usually be done without consulting a lawyer or CPA. Chief among them is an advanced healthcare directive. These documents let healthcare providers know your healthcare preferences in the event you are incapacitated and unable to tell them yourself. In conjunction with the directive, you should also create a durable power of attorney, which grants legal authority to a trusted family member or friend to make medical and financial decisions on your behalf.

Everything that relates to estate planning can be complicated to manage if you aren’t familiar with the documents or the requirements for each. It’s really important to work with professionals who can guide you through the process so that you can make sure your assets are protected and to minimize any tax hit that your loved ones may receive in the future.

Bottom Line

At the end of the day, an estate plan is about making sure that your wishes are followed and your family is taken care of once you’re gone. While it may be tempting to save some money and do this yourself, making an estate plan is not easy — it requires numerous legal documents, including wills and trusts, and the possibility of mistakes is serious. Finding someone to help you, like a lawyer or financial advisor, is the best option.

Tips for Estate Planning

Consider working with a financial advisor with estate planning expertise. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Estate planning isn’t only about making sure your assets are distributed after you die. It’s also about ensuring your loved ones are cared for. When drafting a will, don’t forget to name a guardian for any minor children you have.