A will kit is a hardcopy or online do-it-yourself option for doing a Last Will and Testament. They are advertised as an inexpensive, no-hassle solution for setting out your desires for your estate on your passing. However, there are some important things you should know before you decide to buy one.

Preparing for your own future can be daunting, but it’s wise to take measures to ensure a seamless estate management process. Let’s look at why will kits have become so prevalent along with some of the risks in using them before you decide to invest in one.

Why are will kits so prevalent?

Do-it-yourself will kits are offered on TV and on the Internet. Web-based businesses are flourishing, the increasing prevalence of mobile and social technology has simplified brand marketing, and the baby-boomer era presents a growing senior market for these services. People have unprecedented access to free forms and documents on the Internet, and the do-it-yourself model is promoted as a money-saving solution for just about everything. Entrepreneurs considering opening an online business may consider this the perfect time to market do-it-yourself will kits.

However, beware of online will kit marketers who provide product disclaimers; most of them remove any responsibility if the will kit is not effective. The only advantage of a will kit —a low-cost solution – may be outweighed by the risks — which could very easily turn into an expensive mistake for you or your loved ones.

What are some of the risks in using will kits?

Using a DIY will kit can end up creating substantial costs and problems for a variety of reasons. Reasons why using a DIY will kit could be a serious mistake include the following.

A DIY will kit will not give you any legal advice or guidance. Most people are unfamiliar with the potential pitfalls of drafting a will, and the basic kit they receive will not help them with all the technical requirements of estate laws. You could create a will that leaves out key information or is incorrectly executed. For example:

1. Executors, beneficiaries, and substitutes must be correctly named;
2. Document must be printed;
3. Document must be executed in the presence of independent adult witnesses;
4. Provisions must be made for marriages, divorces, and other events that change the efficacy of legal documentation (e.g. divorce revokes references in the will to a former spouse named as an executor or beneficiary);
5. You may be legally required to provide in your will for certain people in your life;
6. Some proposed beneficiaries may be better catered for by a testamentary trust rather than a simple will;
7. Will kits do not cover superannuation pension funds.

Your heirs could end up spending a lot of money on legal costs if there are questions about your wishes after your death or if your will is not enforceable. This can leave a gaping hole in the inheritance you hope to leave behind.

A DIY will kit only provides you with the basic framework for creating a will. Any complexities at all associated with your estate may frustrate your goal of including the provisions you need in your will. You could end up having to retain a lawyer anyway just to get the job done, having already paid for a kit that is not helpful.

Someone that you would not have chosen could inherit. When you want to give a gift to particular people, you do not want your money to go to someone who you would not want to inherit. Unfortunately, leaving someone out of your will is not necessarily the end of the story. Your will could be challenged. The Succession Act 2006 (NSW) gives certain people the right to challenge your will. A will can be challenged under many circumstances (even when you engage a lawyer to draft it), but a challenge may have a greater chance of success if you used a DIY will kit. If your will is not created in accordance with the law, a challenge could succeed. Your heirs could end up having to spend large amounts on legal fees fighting for the inheritance you intended for them.

If a gift fails (e.g. if you leave money to someone who dies before you) and you have not taken steps to ensure that your intended beneficiary receives the gift, someone you’d prefer not to be a beneficiary could inherit that gift. A DIY will is not going to account for these potential outcomes.

Your heirs could end up paying more in taxes. Capital gains tax can sometimes apply when a change in ownership occurs, even if the change is due to the owner having passed away. CGT may also apply if an asset passes to a foreign resident or a tax-advantaged entity. Your lawyer can advise you with regards to the tax implications of the gifts you intend to make in your will.

Will kits can lead to unintended legal complications that can be avoided with proper counsel. Consider your loved ones by establishing a proper will before an unexpected situation arises. Without a lawyer’s advice, many important issues may not be considered. Experienced lawyers at Mid Mountains Legal are available and willing to answer important questions about this critical decision.

Why should a lawyer prepare my will?

Your will may be the most important document you will ever have prepared. Your diligence in to understanding the components of your will and providing the correct responses will ensure its legitimacy and accuracy. By selecting a lawyer to prepare your will, you enter into a relationship with a skilled professional who will be there with you throughout the process to ensure that your wishes are carried out in the way you intended.

When you leave your will and estate in the hands of an expert, your family will not be left with legal issues and expensive fees due to incorrect documents and mis-information. Reasons to establish a relationship with a will and estate planning professional include:

• Your intentions may not be validated in a do-it-yourself will;
• A lawyer is aware of the legal considerations for blended families—in which a parent has children that are not genetically related to another parent;
• The laws surrounding wills and estate administration vary between states and territories; selecting a lawyer to prepare your will considers the law in your location
• Precise language is the only way to communicate your intentions. Vague or conflicting wording and poor structure in your documents can negate your intentions and lead to high legal costs for your estate;
• A will is extremely personal and should be tailored to meet your individual circumstances;
• You gain an edge for your business and investment assets that a will kit will not consider;
• A professionally prepared will takes into account the tax implications after a death;
• It is an investment in a long-term, secure relationship to manage your needs now and of your estate after your passing.

While will kits may seem like an attractive, low-cost solution for your will, carefully consider the long-terms costs and unintended legal complications of erroneous documents. Don’t wait until it’s too late: contact Mid Mountains Legal today to prepare the most important document of your life.