Writing a will is one of the best ways to protect your loved ones and ensure your assets go where you intend. With many DIY options available, creating a will yourself might seem quick, easy, and inexpensive. However, DIY wills can lead to costly mistakes that might ultimately complicate matters for your family. Here, we’ll explore five common mistakes people make with DIY wills and share how you can avoid them, ensuring peace of mind that your wishes will be upheld.
1. Using Generic Language or Failing to Specify Details
Many DIY will kits and templates use generic language that doesn’t take individual circumstances into account. This can create confusion, especially when it comes to dividing unique or sentimental items. For instance, if you simply state that “all assets are to be divided equally among children,” disputes may arise if your children don’t agree on what’s “equal.”
- Real-Life Example: Imagine leaving a family heirloom—like a vintage watch or a treasured piece of art—to one child without clear instructions. If other children believe they have a right to it, disputes can quickly arise, possibly leading to family strife and even court involvement.
- How to Avoid It: Take the time to be specific. Clearly name each beneficiary and detail the specific assets or amounts they should receive. If you have items of sentimental value, consider leaving them in a “personal property memorandum” attached to your will. This allows you to detail what goes to whom without ambiguity. For more complex assets, like real estate or business shares, consulting with an estate planning attorney can ensure that your language leaves no room for misinterpretation.
2. Not Following State Requirements for a Valid Will
Each state has specific legal requirements for what makes a will valid. In Texas, for example, a will generally needs to be signed by the testator in the presence of at least two witnesses. DIY templates, however, often provide only a general guide, leading many to unintentionally skip or overlook important steps.
- Real-Life Example: A DIY will that isn’t properly signed and witnessed according to Texas law can be deemed invalid in probate court. In this case, your assets may be distributed according to state intestacy laws, which might not reflect your wishes.
- How to Avoid It: Familiarize yourself with the requirements for a valid will in your state. For Texas residents, ensure your will is signed in front of at least two witnesses, and consider having it notarized if required. Working with an attorney for a one-time review can also help confirm that your will meets all legal standards in Texas, providing added peace of mind.
Read more: Texas Will Requirements
3. Overlooking Important Assets or Beneficiaries
DIY wills often miss assets like digital accounts, personal items, or even pets, which can lead to unintended consequences. Over time, changes in your life—like having more children, inheriting property, or acquiring digital assets—can also affect your will’s completeness.
- Real-Life Example: Consider a case where someone didn’t account for their social media accounts or cryptocurrency. Without access instructions, their family could face challenges recovering or closing these assets, often resulting in lengthy, costly processes.
- How to Avoid It: Make a comprehensive list of all assets, including physical property, digital assets, and even sentimental items. Designate a beneficiary or executor for each category, and include clear instructions for digital accounts (like passwords stored in a secure location). If you’ve recently married, divorced, or had children, update your will to reflect these changes. Scheduling a regular review of your will can help you ensure it remains accurate.
4. Failing to Plan for Contingencies
Life is unpredictable, and your will should account for possible changes, such as a beneficiary or executor passing away before you or being unable to fulfill their role. Without contingencies, your will may fall short in unexpected situations.
- Real-Life Example: Imagine naming a sibling as executor but failing to list a backup executor. If your sibling becomes incapacitated or declines the role, the court may appoint someone else, which could go against your preferences.
- How to Avoid It: Include alternative beneficiaries, guardians for minor children, and backup executors in your will. This provides flexibility if your initial choices are unavailable or unable to serve. Discuss these roles with potential candidates ahead of time to confirm their willingness to fulfill your wishes.
5. Ignoring Estate Taxes, Debt, and Legal Implications
DIY wills rarely address the complexities of estate taxes, debts, or other legal matters that could reduce the inheritance left for beneficiaries. In Texas, estate taxes may not apply to smaller estates, but other costs—such as probate fees, legal fees, or debts—can still impact the final distribution.
- Real-Life Example: If you have significant debts or own real estate in multiple states, your heirs might face complex probate proceedings that could erode their inheritance. DIY wills often overlook these details, leading to unexpected costs and delays for your beneficiaries.
- How to Avoid It: Consulting with an estate planning attorney can help you understand potential liabilities and tax-saving strategies that might apply to your estate. Additionally, include provisions in your will to cover funeral costs or outstanding debts, ensuring that your beneficiaries are not left handling unexpected financial burdens.
Conclusion: Ensuring Your Legacy is Secure and Clear
While DIY wills may seem like a convenient solution, they come with risks that could create unintended challenges for your family. By avoiding these common mistakes, you can create a more accurate and secure will, protecting your assets and ensuring your loved ones aren’t left dealing with legal complications. If you’re considering creating or updating your will, the Hailey-Petty Law Firm can help you craft a personalized plan that provides peace of mind and aligns with your goals. Contact us today for a consultation, and let us guide you in creating a will that reflects your values and protects those you care about most.
Read more: Should You Write Your Own Will and Other DIY Estate Planning Questions