Estate Planning Essentials for LGBTQIA+ Couples

September 25, 2024

Estate planning essentials are crucial for everyone, but can be especially vital for LGBTQIA+ couples. Even though marriage equality laws have leveled the playing field in many ways, there are still unique challenges and opportunities that LGBTQIA+ couples should consider. Creating and updating your estate plan to reflect your changing life situation is key to protecting your assets and loved ones.

Like any other couple, LGBTQIA+ couples must have certain essential documents in place to protect their rights and wishes. These include:

Living Will: Outlines your wishes for end-of-life care if you cannot communicate them yourself.
Health Care Power of Attorney: Designates someone to make medical decisions on your behalf if you’re incapacitated.
Durable Financial Power of Attorney: Allows someone to manage your financial affairs if you cannot.
HIPAA Privacy Authorization: Ensures that your designated person can access your health information when necessary.

These documents are critical for ensuring that your wishes are respected, especially when one partner might not be recognized as a legal spouse due to outdated or incorrect paperwork.

One of the unique challenges for LGBTQIA+ couples, particularly those with children, is the legal recognition of both parents. In many cases, only one partner is the biological parent, which can create complications if the biological parent passes away or if the couple separates.

By adopting their partner’s child, non-biological parents can establish a legal relationship with the child and obtain parental rights. This can prevent disputes over custody with extended family members and protect the child’s inheritance rights.

LGBTQIA+ individuals must ensure that the beneficiary forms for their insurance plans, retirement accounts and other financial assets are current. These forms override what is written in a will. Therefore, if you forget to replace an ex-partner or family member as a beneficiary, that person will inherit those assets.

This is especially important for LGBTQIA+ couples who may have previously named someone other than their spouse as a beneficiary before their marriage was legally recognized. Regularly reviewing and updating these forms, especially after major life events, ensures that your assets go to the person you intend.

Before same-sex marriage became legal, many LGBTQIA+ individuals entered into domestic partnerships, civil unions, or other legal arrangements to protect their relationships. However, some states automatically upgraded these partnerships to marriages when the law changed, sometimes without the couple’s knowledge.

This can create a “tangled web” of legal relationships that could lead to complications with your estate. For instance, if you didn’t formally dissolve a previous partnership, your former partner might have a claim to your estate. It’s important to resolve any past legal unions to prevent future disputes.

In a story shared in the MassMutual blog, Joan Burda, an attorney in Lakewood, Ohio, shares the cautionary tale of LGBTQIA+ couples who entered domestic partnerships or civil unions before legalizing same-sex marriage. These partnerships were sometimes automatically upgraded to marriages without the couple’s knowledge when laws changed, leading to unexpected complications.

For instance, couples who thought they had dissolved their previous legal relationships might find that their former partners still have legal claims on their estate. This underscores the importance of reviewing and resolving all prior legal unions to prevent future disputes and ensure the full protection of their current relationships.

Estate planning is not a one-time event. Laws change, relationships evolve and your plan needs to reflect those changes. LGBTQIA+ couples should take time for a review of their estate planning essentials, resolve any past legal relationships and ensure that their beneficiary forms are up to date.

Your relationship and family deserve the strongest legal protections available. Don’t leave your future to chance—ensure that your estate plan reflects the unique needs of LGBTQIA+ couples. If you would like to learn more about planning topics for same sex couples, please visit our previous posts.

Reference: MassMutual (June 06, 2024) “Estate Planning for LGBTQIA+ Couples”

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Preparing Your Adult Children for Their Inheritance

September 18, 2024

Talking about inheritance with your children is one of the most important conversations you can have. However, it’s never easy. This is a conversation about what happens after you’re gone. Preparing your adult children for their inheritance can prevent many problems down the road.

Avoiding the topic of inheritance might seem like the path of least resistance. That is true at first. However, after you’re gone, your loved ones might suffer confusion, misunderstandings and family conflicts due to a lack of communication. Not discussing your plans could pose unanswered questions to your children or, worse, unexpected financial burdens.

According to Fidelity, open communication helps your children avoid surprises and prepares them emotionally and financially. Discussing your estate plans with your adult children can smooth the transition of wealth by sharing the values and intentions behind your decisions.

Starting the conversation about inheritance can be awkward. However, it doesn’t have to be. Begin by setting clear expectations. Let your children know why you’re discussing this and what you hope to achieve. Focusing on the importance of family unity and ensuring that everyone is on the same page is helpful.

You can start with simple topics, like how you manage your finances or the basics of your estate plan. As the conversation progresses, more details will be introduced, such as how assets will be distributed and the reasons behind these decisions.

Financial education plays a significant role in preparing your children for their inheritance. If your children lack basic money management skills, they may struggle to manage the wealth they inherit.

Start teaching them early by encouraging good financial habits. For example, you can help them set up a budget, open a savings account, or understand the importance of credit. As they age, consider discussing more complex topics, such as investing, taxes and the importance of maintaining a financial cushion.

Many parents worry about how their children will manage a large inheritance. If this concerns you, establishing a trust can effectively protect your assets, while still providing for your children’s needs.

Trusts can be tailored to fit your family’s unique situation. For example, you might set up a generation-skipping trust to benefit your grandchildren or a spendthrift trust to prevent a beneficiary from mismanaging their inheritance. Trusts can also help minimize taxes and protect your assets from creditors.

Even with the best preparation, the wealth transition can still be challenging. One of the best ways to ensure a smooth process is by developing a comprehensive estate plan built on clear communication and understanding. Ensure that your children know where essential documents are stored and who to contact when the time comes. Consider creating a family mission statement to outline your values and provide guiding principles for your children.

Preparing your adult children for their inheritance is about more than just transferring money. It’s about passing on your values and ensuring that they’re ready to handle the responsibilities that come with it. If you would like to learn more about managing an inheritance, please visit our previous posts.

Reference: Fidelity (Jul. 26, 2024) “Preparing your children for their inheritance”

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Pitfalls of DIY Real Estate Deeds

September 16, 2024

When transferring property, many people think, “How hard can it be?” This is where DIY deeds, especially quitclaim deeds, come into play. They seem like a quick and easy solution to pass on property to loved ones. However, this shortcut can lead to major headaches down the road. Kiplinger underlines the pitfalls of DIY real estate deeds and how to avoid errors.

A quitclaim deed is a simple document that transfers whatever interest the grantor (the person transferring the property) has in a property to the grantee (the person receiving the property). It’s often used between family members to avoid probate or as a quick way to add someone’s name to a property deed.

However, here’s the catch: While quitclaim deeds are easy to create and file, they don’t offer any guarantees. The deed only transfers the grantor’s interest—if any—and doesn’t ensure that the title is clear or that the grantor even owns the property outright.

Using a quitclaim deed without professional guidance can lead to several unforeseen problems. Here’s a closer look at some of the most common issues.

One of the biggest pitfalls of using a quitclaim deed is discovering too late that you don’t actually have a clear title to the property. For example, if a child inherits a home and uses a quitclaim deed to transfer the property into their name, they might believe everything is fine—until they try to sell the house.

At that point, a title company might uncover that the property transfer skipped the required probate procedures, rendering the title unmarketable. The sale stalls, leaving the new owner stuck in a legal mess.

Another major risk arises when you add someone else’s name to your property deed. Suppose a parent adds their child to the deed to avoid probate. If that child later faces financial issues, such as bankruptcy or a lawsuit, their creditors could claim a stake in the property. This means the parent might lose part of their home to settle the child’s debts because they took the DIY route.

Adding someone to a deed can also cause complications with insurance and taxes. For example, once another person is listed on the deed, the original homeowner must notify their insurance company. If they fail to do so, the property insurance might become invalid, leaving the property uninsured. Transferring with a quitclaim deed can also trigger gift tax requirements; while selling the home may result in hefty capital gains taxes you could have avoided with a trust.

Using a trust instead of a quitclaim deed offers significant advantages. A trust allows you to transfer property without losing control during your lifetime and provides a clear path for the property after your death. This approach can help avoid the probate process, protect your property from creditors and reduce potential tax liabilities for your heirs.

For example, if you transfer your home into a trust, the property’s value is adjusted (“stepped up”) to its fair market value at your death. This can reduce or eliminate capital gains taxes for your heirs when they eventually sell the property.

Avoid the pitfalls of DIY real estate deeds. Don’t let a simple mistake cost you or your loved ones dearly. If you would like to learn more about deeds and real property in your estate planning, please visit our previous posts.

Reference: Kiplinger (Mar. 20, 2024) “How Quitclaim Deeds Can Cause Estate Planning Catastrophes”

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Sharing Family Values in Your Estate Plan

September 9, 2024

Estate planning isn’t just about managing finances and assets; it’s also a way to pass down family values that shaped your life. As you think about the legacy you want to leave behind, consider sharing those critical family values in your estate plan. Doing so ensures that your life’s lessons, beliefs, and traditions guide and inspire your family even after you’re gone.

Family stories are more than just memories; they are the building blocks of your family’s identity. Professor Elizabeth Keating from the University of Texas highlights the importance of uncovering these stories by asking thoughtful questions. According to Keating, by learning about your parents’ and grandparents’ experiences, you can see the world through their eyes and understand the values that guided them.

When planning your estate, these stories can play a crucial role. For instance, if you value hard work and education, you might want to include provisions in your estate plan that encourage these traits in your heirs. This could be through establishing a trust that supports education or guidelines that reward hard work and responsibility.

Setting up a trust is one effective way to embed your values in your estate plan. Trusts offer flexibility, allowing you to set specific conditions for how and when your assets are distributed. For example, if you want to encourage your children to pursue higher education, your trust could cover tuition and educational expenses. On the other hand, if you want to promote entrepreneurship, you could create provisions that support starting a business.

A well-drafted trust can include various instructions tailored to reflect your values. Here are a few examples:

Encouraging Education: The trust could stipulate that funds are released to pay for college or other educational pursuits.
Promoting Work Ethic: Distributions might be tied to the beneficiary’s employment status or income level.
Supporting Healthy Lifestyles: The trust could include incentives for maintaining good health or even require periodic drug tests.
Fostering Philanthropy: You could set aside a portion of the trust to be donated to charities that align with your values or establish a charitable foundation in your name.

According to an article written by Kiplinger, discussing your estate plan with your family is essential to ensure that everyone understands your wishes and the values you hope to pass on. This dialogue can also allow you to share the stories and lessons that have shaped your life. Dr. Keating emphasizes the power of asking the right questions to uncover these stories, which can strengthen the connection between generations.

By having these conversations, you clarify your intentions and give your family a deeper understanding of the values behind your estate planning decisions. This can help prevent misunderstandings and conflicts down the road.

For many, faith plays a significant role in their lives, and estate planning is an opportunity to ensure that these beliefs continue to guide future generations. Whether supporting religious institutions, funding mission trips, or simply promoting charitable giving, your estate plan can be tailored to reflect and perpetuate your faith.

Incorporating a statement of purpose within your trust can serve as a powerful reminder to your heirs about the importance of these values. This statement can outline your motivations and provide guidance on how you wish your legacy to be used, ensuring that your values continue to influence your family for generations.

Sharing your family values in your estate plan offers a unique opportunity to preserve and promote then for future generations. By incorporating thoughtful provisions and having open conversations with your loved ones, you can ensure that your legacy is about more than just money—it’s about the values that have guided your life.

If you would like to learn more about sharing personal life lessons and advice in your estate planning, please visit our previous posts.

References: The University of Texas (Nov. 10, 2022) “Faculty Publication: The Essential Questions: Interview Your Family to Uncover Stories and Bridge Generations by Elizabeth Keating” and Kiplinger (Jun. 27, 2023) “In Estate Planning, Your Values Can Play a Key Role | Kiplinger”

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Ensure your Child’s Future is Protected with Estate Planning

August 26, 2024

Becoming a parent is an exciting journey filled with dreams and plans for the future. Amidst the joy and anticipation, you also need to consider your child’s future security. While no one wants to think of it, the worst could happen to you, and you could become unable to care for your child. Without an estate plan, your assets could go through a lengthy probate process, and the court would decide on guardianship for your children. Ensure your child’s future is protected with estate planning.

Estate planning involves organizing your financial affairs to ensure that your assets are managed and distributed according to your wishes after you pass away. It includes creating a will, assigning power of attorney and considering trusts. According to Experian, planning ahead can avoid potential legal complications and ensure that your loved ones are taken care of. Estate planning can also help minimize taxes and protect your assets from creditors.

Without a will, state laws determine the distribution of your assets and the guardianship of your children. This could mean that your child ends up with a relative you haven’t spoken to in years or foster care. An estate plan allows you to choose guardians and ensure that your child’s future is secure.

A will is the foundation of your estate plan. It should:

Name a guardian for your children.
Name an executor to manage your estate.
Specify who inherits your assets.

Power of attorney allows someone to make financial and health care decisions on your behalf, if you become incapacitated. This includes:

Financial Power of Attorney: Give someone the power to manage your finances and property.
Health Care Power of Attorney: Empower someone you trust to make medical decisions for you.

The best time to start estate planning is now. Waiting until your baby arrives can lead to delays and potential financial hardships. Building an emergency fund, contributing to a health savings account and setting up automatic savings transfers are great first steps. Proactively managing your finances can help reduce stress and ensure a smoother transition into parenthood. Starting early also allows you to make informed decisions and adjust your plan.

When Joyce Marter, a financial therapist and author, was expecting her first daughter, she found herself living paycheck to paycheck with substantial student loans. In an article by the NY Post, she reflects and explains how she realized the immense value of having a solid financial plan before transitioning into parenthood. Marter recalls a conversation with her pregnant supervisor, who advised her that no one is ever truly ready for a baby: “None of us are really ever truly ready — you just take the plunge and figure it out as you go.”

Years later, as Marter prepared for her own child, she understood the importance of proactive financial planning. She began by building an emergency fund, contributing to a health savings account and avoiding unnecessary baby registry items. These steps provided a financial safety net and helped reduce stress during her pregnancy.

Don’t wait until it’s too late. Ensure that your child’s future is protected and your wishes are honored with proper estate planning. If you would like to learn more about planning for minor children, please visit our previous posts.

References: NY Post (Oct. 18, 2023) “Savvy expecting parents need to start financial planning now” and Experian (Oct. 13, 2020) “How to Plan Your Estate as a New Parent – Experian”

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Godparents Lack Legal Rights Unless Named as Guardians

August 21, 2024

Choosing godparents for your children is an important decision for many families. However, it’s crucial to understand that godparents lack any legal rights, unless named as guardians in your will. If you’d like your children’s godparents to serve as guardians in an emergency, consider if they’re suitable for the responsibility and take the legal steps needed to recognize them as guardians.

Parents often choose godparents to have a religious or spiritual influence on their children. They are typically involved in special ceremonies, such as baptisms, and may play a supportive role in their children’s upbringing. However, being a godparent does not grant any legal rights or responsibilities over the child.

On the other hand, a guardian is legally responsible for the care and upbringing of a minor child if the parents pass away or are unable to care for them. According to Forbes, guardianship is a significant legal role that includes making decisions about the child’s education, healthcare and general welfare.

The main reason godparents cannot automatically become guardians is that the roles are different in nature and responsibility. While godparents are chosen for their moral and spiritual guidance, guardians are chosen to take on the full parental role in case of an emergency. While there is overlap between these roles, a capable spiritual guide will not always have the time and resources to become a parent.

Choosing a guardian for your children is a complex and often emotional decision. Here are some key factors to consider:

Lifestyle Fit

Think about the potential guardian’s age and life situation. Asking someone to raise your children is a big request, and choosing someone whose lifestyle can accommodate this responsibility is essential. For example, a guardian with grown children might face a significant lifestyle adjustment if asked to care for young children again.

Location

Ideally, the guardian should live near your home. This minimizes the disruption to your child’s life, allowing them to stay in the same school and community, which can be a source of comfort during a difficult time.

Financial Circumstances

Raising children can be expensive. Make sure that the potential guardian is financially stable, and consider setting up a trust to cover your child’s expenses. This will help avoid placing a financial burden on the guardian and ensure that your child has the resources they need.

Shared Values

Choose a guardian who shares your values and parenting philosophy. While no one will be a perfect match, it’s important that the guardian can provide a similar upbringing to what you would have wanted for your child.

While many consider naming a married couple as co-guardians, it’s often simpler to name a single individual. This helps avoid complications if the couple divorces or disagrees about how to care for your child. You can also name one or more successor guardians who will take over if the primary guardian is unable or unwilling to take on the role when the time comes.

Always ask the person you want to name as guardian if they are willing to accept the role. This way, you can be sure they’re prepared and willing to take on the responsibility. Naming someone without their consent can lead to confusion and complications. In most states, you must include this information in your will to legally name a guardian for your minor children. This is a critical step to ensure that your wishes are followed and to avoid leaving the decision up to the courts.

If you don’t name a guardian in your will, the courts will decide who will take care of your children. This can lead to family disputes and result in a decision that may not align with your wishes. Naming a guardian in your will gives you control over who will care for your children and helps stabilize them during a challenging time.

Remember, godparents lack any legal rights, unless named as guardians for your minor children in your estate plan, Choosing a guardian for your children is one of the most important decisions you will make as a parent. Consult an experienced estate planning attorney to discuss your options. If you would like to learn more about guardianship, please visit our previous posts.

Reference: Forbes (May 29, 2018) “Selecting Your Children’s Guardians Is Very Different Than Naming Their Godparents”

The Estate of The Union Season 3|Episode 10

The Estate of The Union Season 3|Episode 8 is out now!

August 19, 2024

The Estate of The Union Season 3|Episode 8 is out now! We all accumulate stuff as we go through life. When someone dies, what to do with all the stuff the deceased owned can be complex and exhausting.

It can also create fights over Who Gets What. In this edition of The Estate of the Union, Brad Wiewel interviews Ann Lumley, the Director of After Life Care at Texas Trust Law. Ann has seen just about everything that can happen with an estate where stuff (otherwise known as heirlooms and collectibles) can be an issue. Ann helps dissect the problems and highlights some strategies to help avoid collisions that often occur.

In each episode of The Estate of The Union podcast, host and lawyer Brad Wiewel will give valuable insights into the confusing world of estate planning, making an often daunting subject easier to understand. It is Estate Planning Made Simple! The Estate of The Union Season 3|Episode 8 is out now! The episode can be found on Spotify, Apple podcasts, or anywhere you get your podcasts. If you would prefer to watch the video version, please visit our YouTube page. Please click on the links to listen to or watch the new installment of The Estate of The Union podcast. We hope you enjoy it.

Texas Trust Law focuses its practice exclusively in the area of wills, probate, estate planning, asset protection, and special needs planning. Brad Wiewel is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. We provide estate planning services, asset protection planning, business planning, and retirement exit strategies.

Estate Planning is Critical for a Single Parent

August 15, 2024

Raising a child or children by yourself is challenging on many levels. Single parents have very little spare time or resources. Estate planning is critical for a single parent, even more than if another parent was involved, as discussed in a recent article from The News-Enterprise, “Single parents must be deliberate in estate planning.”

Two key decisions to be made with minor children are who to name in a will as their guardian, the person who will raise them if the parent dies or is incapacitated, and who will be in charge of their finances. If another biological parent is involved in their care, things can get complicated.

Whether or not the other parent will be named as a guardian who will take custody of the child(ren) depends on whether or not they have any legal custody of the children. If the parents were married at one time but the marriage ended after the child was born, there is likely to be a separation agreement addressing custody.

If both parents share custody, the surviving parent would take custody of the child. This is standard practice, regardless of who has primary custody.

But if the parents never married and no one pursued an order of paternity or entered a custody order recognizing the legal rights of the noncustodial parent, or if a parent has lost any legal rights to the child, the parent needs to name a guardian and an alternate guardian.

Even if there is a surviving parent, you’ll want to name at least one guardian and one contingent guardian. There are instances when the noncustodial parent prefers not to become the custodial parent, even if the child’s other parent has died. There are also cases where the noncustodial parent is not fit to raise a child, so having other potential guardians named is a better idea.

Separate from the guardianship issue is the decision of who should manage the assets left for the child. You have a right to name the person of your choice to oversee these funds, regardless of whether or not the other parent is living. In most cases, there are two general options:

Conservator: This is a court-appointed person who is responsible for any assets left outside of a trust or any income received by the child. The conservator can be the same person as the guardian, but it does not have to be the same.

Trustee: A best practice in estate planning for a child is to leave the property in trust to be distributed for specific purposes, like education, health care, and general support. Assets can be left in trust through a last will and testament or through a trust set up while the parent is living to benefit the child.

Estate planning is critical for a single parent. An estate planning attorney should be consulted to determine how best to structure planning when there is only one parent. This protects the child and gives the parent peace of mind. If you would like to learn more about planning as a single parent, please visit our previous posts.

Reference: The News-Enterprise (July 5, 2024) “Single parents must be deliberate in estate planning”

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Ensure your College-Bound Student has Documents in Order

August 5, 2024

Sending your child to college is a major milestone but comes with important legal considerations. Now that they live independently, handling a medical emergency could be much more complicated. The Wall Street Journal makes the case that, as parents, you must ensure your college-bound student has their documents in order. This way, you can help them if they need it in any situation.

When your child turns 18, you lose access to their medical, financial, or academic records. You could face significant hurdles in helping them during emergencies without the proper legal documents. There are four essential legal documents.

A HIPAA waiver allows your child to grant you access to their medical records. Without this form, healthcare providers cannot share any medical information with you due to privacy laws. This waiver ensures that you stay informed about your child’s health and can make informed decisions in a medical emergency.

A medical power of attorney designates someone to make medical decisions on your child’s behalf if they cannot. If your child becomes incapacitated due to illness or injury, you’ll need this document to manage their care. Families without a medical power of attorney will have to delegate important healthcare decisions to people they don’t know.

With a durable power of attorney, you can manage your child’s financial affairs if they cannot do so. This can include paying bills, handling bank accounts, and managing investments. This document is particularly important if your child is studying abroad or becomes incapacitated.

The Family Educational Rights and Privacy Act (FERPA) protects the privacy of student education records. A FERPA waiver allows your child to grant you access to their academic records. This can be important if you need to stay informed about their academic progress or assist in managing their education.

Without these legal documents, you could face significant challenges in assisting your child. For instance, you could be unable to learn about your child’s condition if they become hospitalized. You would also be unable to make decisions on their behalf to manage their care or finances.

Most of these documents can be obtained online for free or through your attorney. Ensuring that the forms meet your state’s legal requirements is essential. Some documents may require notarization. Here’s a brief guide on how to obtain each:

HIPAA Waiver: Available online or from your child’s healthcare provider.
Medical Power of Attorney: Available online, but ensure it complies with state-specific laws.
Durable Power of Attorney: Obtained from an attorney to ensure it meets state legal standards.
FERPA Waiver: Available through your child’s college or university.

The requirements for legal documents for college students can vary by state. If your child is attending college out of state, you may need to prepare valid documents for your home state and the state where your child studies. Consulting with an attorney helps properly prepare and execute all documents.

A durable power of attorney becomes even more critical if your child studies abroad. This document ensures you can manage their financial matters and make decisions on their behalf if they encounter issues while overseas.

Preparing these essential legal documents ensures your college-bound student has their documents in order and gives you peace of mind. Don’t wait until an emergency arises; take action now. If you would like to learn more about planning for college age children, please visit our previous posts.

Reference: WSJ (Aug. 14, 2023) “Before Your Child Goes to College, Complete These 6 Important Documents – WSJ”

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Avoid Using AI to Create a DIY Estate Plan

July 30, 2024

Estate planning is crucial to carry out your wishes after you’re gone. However, with the rise of artificial intelligence (AI), some wonder if it can bypass traditional methods. Some people have used AI tools to create DIY estate plans that look good to the untrained eye but have serious shortcomings. Avoid using AI to create a DIY estate plan.

Artificial intelligence refers to computer programs that use complex algorithms to perform tasks usually requiring human intelligence. AI tools like ChatGPT and Google Gemini have recently become widely available. Creative writers and many others use these tools for help with research, drafting documents and other purposes. You would think a DIY estate plan with AI could work. However, a close examination reveals its shortcomings.

If you’re comfortable writing a document, you can use AI to assist in drafting. This could help in documents, like wills and powers of attorney, by generating them from information you provide. For most people, though, this would do more harm than good. It’s necessary to understand the limitations and risks of AI in estate planning.

While ChatGPT and other chatbots are impressive tools, they lack true intelligence. This can often make DIY estate plans with AI no better than having no estate plan at all.

Lack of Critical Thinking: AI lacks the ability to think critically. It uses pre-fed data to generate responses, which can lead to inaccuracies. For example, AI might misinterpret your instructions or miss important details about your estate.
Hallucinations: AI can “hallucinate,” or produce entirely fictional information. There have been cases where AI-generated legal documents contained fabricated cases and statutes. This can render AI-based legal documents completely invalid, with severe consequences.
Incomplete Customization: Estate plans need to be highly personalized. AI might not consider all personal details, such as the specific needs of your family members or your unique financial situation. This could result in a plan that doesn’t reflect your wishes.

When you input personal data into an AI tool, there’s a risk of confidentiality breaches. AI systems store this information, which others can potentially access. This raises significant privacy concerns, since a data breach could expose sensitive information about your family and assets.

AI might seem like a cost-effective solution compared to hiring an attorney. However, the likely risks and inaccuracies can be devastatingly costly in the long run. Errors in your estate plan can result in legal disputes, probate battles and avoidable tax burdens.

Estate planning attorneys bring a level of expertise and personal touch that AI cannot match. They can:

Ensure that all legal documents are accurate and tailored to your needs.
Provide critical thinking and problem-solving skills.
Address complex family dynamics and financial situations.
Guarantee confidentiality and privacy of your personal information.
Offer ongoing support and updates to your estate plan as laws and personal circumstances change.

The American College of Trust and Estate Counsel (ACTEC) reports that a New York lawyer used AI to find case law for his case. However, they discovered the cases were entirely fabricated, and he soon faced sanctions. A Florida attorney similarly faced suspension for submitting AI-generated pleadings with non-existent cases. Despite the progress in AI, these tools remain inadequate for legal purposes.

AI lacks the human element necessary for comprehensive estate planning. Human attorneys understand the nuances of the law with true understanding that AI simply cannot replicate. Furthermore, a human attorney brings interpersonal skills and business experience to your estate planning. They can foresee potential issues with your family and new developments in the law to create a comprehensive, enforceable estate plan.

Avoid using AI to create a DIY estate plan. While AI can help draft simple documents, it is not a substitute for an estate planning attorney’s expertise. The risks of inaccuracies, lack of customization and potential privacy breaches make it unreliable. A skilled estate planning attorney is needed to create a comprehensive and accurate estate plan. If you would like to learn more about the risks of DIY estate planning, please visit our previous posts.

Reference: American College of Trust and Estate Counsel (ACTEC) (Apr. 18, 2024) ”Use of Artificial Intelligence (AI) in Creating an Estate Plan”

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Category: Wills

Estate Planning Essentials for LGBTQIA+ Couples

Preparing Your Adult Children for Their Inheritance

Pitfalls of DIY Real Estate Deeds

Sharing Family Values in Your Estate Plan

Ensure your Child’s Future is Protected with Estate Planning

Godparents Lack Legal Rights Unless Named as Guardians

The Estate of The Union Season 3|Episode 8 is out now!

Estate Planning is Critical for a Single Parent

Ensure your College-Bound Student has Documents in Order

Avoid Using AI to Create a DIY Estate Plan

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