A growing number of websites now allow people to plug information about themselves and write their own will. But doing so can be very dangerous and can lead to big problems, according to an independent review by Consumer Reports.
The magazine analyzed three such sites - LegalZoom, Rocket Lawyer, and Quicken WillMaker Plus - and ran the results by a law professor who specializes in tax and estate law. All three websites had a variety of problems, according to the study.
The problems include:
Outdated Information: Two sites applied federal tax rules that were already months out-of-date and incorrect.
Not State-Specific: The law of wills varies from state to state, but the programs didn't take into account variations in state law. For example, NY follows strict guidelines for health care directives, powers of attorney, and gift riders that must be present in order to be enforceable.
No Tax Advice: None of the programs offered tailored advice on how to reduce taxes - a critical flaw. In fact, every client should have two major concerns when approaching an attorney for estate planning: How do I reduce my tax consequence so that more money is left for my family and charities; and How do I protect my assets for trusts created for my children from debtors. All of which are not accounted for in the online do-it yourself websites.
Incomplete: The websites often lacked provisions on how to handle business interests, electronic assets, trusts for children with special needs, domestic partnerships, multiple properties held (nationally and internationally), multiple trusts, etc etc. All of which are crucial in planning your estate documents and Wills.
No Flexibility: The websites frequently made arbitrary choices and didn't allow bequests to be handled differently. Some added additional provisions to trusts without any warning which could render the entire trust void, null, or just outright unenforceable!
The professor described one will produced by Rocket Lawyer as "primitive," and another as "a mess."
The magazine noted that LegalZoom allows you to pay extra money to receive attorney "support," but when it contacted the company, it was told to type questions about arbitrary or missing provisions into a box and that these would be handled later in a hard copy of the will. According to the magazine, even though it paid the extra fee, this never even happened.
In sum, using a do-it-yourself website to write your will can be "like removing your own appendix," according to the Consumer Reports article. There's simply no substitute for a lawyer who can understand your wishes and goals, and provide legal and tax advice that's suited to your needs.
