In Part 1 of this series, we covered how DIY estate plans create a false sense of security and often fail due to simple errors, like thinking a will is enough or failing to sign the documents correctly.
But the dangers don’t stop there. The biggest gaps in a DIY plan are often the ones you’d never think of—the “unknown unknowns.” These are the issues that a piece of software can’t possibly navigate, and they are the ones that can cause the most profound, costly, and lasting damage to your family.
Here are the final three, and most significant, ways a cheap online plan can fail your family.
Failure #3: Appointing an Ineligible Executor or Trustee
When you fill out a generic form, you’ll be asked to name an “Executor” or “Trustee”—the person you trust to manage your affairs. You type in a name, and the software plugs it into a template. What it won’t do is cross-reference state law to see if your choice is legally disqualified from serving.
State laws are very specific about who can serve in these critical roles. For instance:
- Residency: Some states require your executor to be a family member or a resident of that state. If you name your best friend who lives across the country, they may be barred from the role, forcing the court to appoint someone else.
- Criminal Record: Many states prohibit anyone with a felony conviction from serving as an executor. A DIY form will not ask this question, but the court will.
- Bonding: Many states require an executor to be “bonded” (a type of insurance policy) before they can manage your assets. This is meant to protect the estate’s value. If your chosen person has a poor credit score, they may not qualify for the bond, making them ineligible to serve.
In any of these cases, the decision is taken out of your hands. The court, not you, will appoint an executor. This could be a professional administrator who will drain your estate with professional fees, or worse, the one family member you would have never wanted in charge, potentially igniting a family conflict that could last for decades.
Failure #4: Your Assets Get Lost in a Digital Black Hole
You’ve signed your will, and it’s perfect. It clearly states that your assets should be divided equally among your children. But does it include a list of what those assets are and where to find them?
Does your family know about the old 401(k) from a job you left 15 years ago? The life insurance policy you bought through an employer? Your cryptocurrency wallet, your online investment accounts, or even the safe deposit box you opened at a different bank?
If your family doesn’t know an asset exists, it’s as good as gone.
There is currently over $50 billion in unclaimed property sitting in state departments across the U.S. This isn’t money from people with no plan; it’s from people who had a plan but failed to leave a “treasure map” for their loved ones. While grieving, your family is forced to become financial detectives, digging through old mail and tax returns, trying to piece together your life’s work.
An online will service doesn’t help you create this map. Our estate planning process, on the other hand, begins with a comprehensive asset inventory. We help you gather every last detail—passwords, accounts, contacts, and locations—ensuring that the people you love will actually be able to find what you’ve left for them. We then work with you over time to keep this inventory updated as your life inevitably changes.
Failure #5: It Can’t Navigate Your Family’s “Heart”
This is the most devastating failure of all. A DIY plan is a transaction; it cannot understand human relationships. It is blind to the complex, emotional, and delicate dynamics that exist in every family.
Family dynamics are complex, especially in blended families. A software template can’t anticipate the potential for conflict or hurt feelings. It can’t help you navigate:
- How to treat children from a previous marriage fairly, ensuring they feel respected and provided for without creating resentment.
- How to protect a child with special needs, addiction issues, or poor financial habits, providing for their care without enabling destructive behavior.
- How to prevent a feud over personal items. A template may say “divide personal property,” but it can’t help you address the sentimental value of a wedding ring, a set of tools, or the family piano, which can lead to bitter disputes over items with deep emotional worth.
We see families torn apart by poor planning every day. But we also see families brought closer together when it’s done right. Preventing family conflict is our “special sauce.” We are trained to help you anticipate these emotional complexities and structure a plan that acts as a tool for harmony, not a trigger for a fight.
The Kind of Planning Your Family Deserves
A cheap online form is a simple transaction. A true estate planning solution is a lifelong relationship with a trusted advisor who understands your assets, your family, and your values.
This is why we call our process “Life & Legacy Planning.” We don’t just draft documents and send you on your way. We get to know you. We help you inventory your assets, include your family in the process (where appropriate) to create transparency, and put safeguards in place to protect your children.
Perhaps most importantly, we help you preserve the intangible assets: your family’s most treasured values, stories, and insights. Passing on your valuables is important, but passing on your values is the legacy that truly matters. This is something no website can ever help you pass on.
If you’re willing to gamble your family’s financial future and emotional well-being on a $99 form, you’re putting them at risk to save a few dollars. If you want to do right by the people you love, let’s build a real plan that provides true, lasting peace of mind.
Contact us today to schedule your Life & Legacy Planning Session and give your family the peace of mind they deserve.
