Despite the importance of having a will as part of your estate plan, a large number of people do not have one in place. There may be many psychological reasons for this, as many people are uncomfortable thinking about their own mortality. Further, some might find it difficult to spend money on creating an estate plan because they will not be around to receive any of the benefits.

However, there are now many do-it-yourself forms, software and books that allow you to draft your own will for a fraction of what estate planning attorneys charge. These cookie-cutter products have multiplied in recent years.

At first glance, one might think the product is great. Who would turn down a will prepared for a fraction of the cost? However, it is important to realize that these products can cause many problems. These do-it-yourself documents can have improper wording that produce a result that is far from what the customer intended. Likewise, there are often problems with the execution formalities, such as the requirement that the will be signed before witnesses before it is valid.

There are many examples of the pitfalls of do-it-yourself wills. For instance, a wealthy Texas man copied a will form from a library book and used it to leave his $7 million fortune to his wife. Although assets left to a spouse are not subject to the estate tax in Texas, anything left when his wife died was subject to the estate tax. The wife had to disclaim the entire $3.5 million exemption amount and allow it to pass to her sons.

Another example of the dangers of do-it-yourself wills is the situation of a man who sought to disinherit his estranged son. The father bought some do-it-yourself software and followed the prompts to list his assets. However, the software omitted some types of assets, and the father's will made no mention of some shares of phone company stock he had bought long ago. Those shares had recently skyrocketed in value and were worth $1.5 million, which was most of the father's estate.

Because his will did not contain a residuary clause which indicates what to do with what is left after the estate is distributed, the stocks passed through intestacy. The estranged son received $400,000 and, due to a substance abuse problem, spent it all in less than a year.

There are many more examples of how these do-it-yourself products can end up producing an undesired, and sometimes devastating, outcome. Therefore, it is important to seek the guidance of a professional to ensure that your will carries out your true intentions after you are gone.

Source: Forbes "The Case Against Do-It-Yourself Wills" 9/7/10