1. Failure at Implementation
Many DIY estate plans fall apart not at the drafting stage, but at implementation. You may not be informed or know how to fund your trust, update your beneficiaries, update your homeowner’s insurance, or complete the numerous other necessary actions that make a plan actually work.
2. Incomplete, Unclear, or Self-Contradictory Documents
Even when DIY documents happen to be signed and executed correctly, they are often lacking in completeness, use unclear language, or are outright self-contradictory especially when different sections are pulled from different templates online. This sort of problem causes confusion for beneficiaries and may result in expensive court battles.
3. Flying Blind Without a Strategy
DIYers are navigating without a map. Estate planning isn’t just about forms it’s about strategy, tax implications, legal nuance, and life experience. If you don’t know what to look for, it’s more likely than not that you’ll leave major gaps in your plan which may lead to confusion, chaos, costs, and conflict for your spouse and children.
4. Unintended and Unforeseen Consequences
Many people finish a DIY plan and think they’re covered, but these plans rarely address the complexities of real life. You may be unaware of certain consequences such as a loss in tax basis, liability exposure, what a remarriage means for your planning, how to plan for a disabled or divorcing child, or the loss of Medicaid eligibility or other benefits you or your loved ones rely upon.
5. No Professional in Your Corner When It Matters Most
When someone passes away, you go through a major life change, or face a period of incapacity, all you’ll have is a stack of documents. You and your loved ones won’t have a known and caring professional to reach out to for guidance. Instead, you’ll find yourself calling a faceless call center or an unknown attorney who doesn’t want to touch the mess and facing a massive probate fee from the same company that sold you the “cheap” documents in the first place.
6. Neglecting Asset Titling or Trust Funding
Failing to coordinate your beneficiary designations is a common mistake in DIY plans and will result in assets being passed outside of your estate plan entirely. An unfunded revocable living trust is exactly as useful as no trust and maybe more harmful due to potential challenges. When beneficiaries are not properly named, the Colorado statutes will decide who receives your assets.
