Tag Archives: DIY

Estate Planning

Can You Trust Estate Planning Software?

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If you are considering creating your estate plan by using Do-it-Yourself software, you should reconsider. Many people believe they will save money by not hiring an estate planning attorney, but what you do not know can cost you dearly. Below are a few facts you should consider before trusting a software program to create your estate plan:

  • When you use a DIY program, the documents you are provided may not have been created by an attorney. Even if a service center is available to answer your questions, the individuals you speak to are prohibited by law from giving you legal advice if they are not licensed attorneys. As a result, if you require any assistance that is outside filling-in blanks on a form, the software program or the company’s representatives cannot provide help or give you advice because it would constitute the unauthorized practice of law.
  • An estate planning lawyer is required to stay on top of changes in the law (include tax laws), which can occur frequently. When you use a computer program to establish your estate plan, you have no guarantee that the forms you are using comply with the current law. In fact, inaccuracies in DIY forms are usually not discovered until it is too late to do anything about it.
  • Generic documents and a software program cannot consider your individual circumstances like your lawyer can. If you have situations that are outside the norm, a computer program will not have the flexibility or expertise to properly handle it.

 

Don’t fall into the trap of believing a DIY software program can replace a knowledgeable and experienced attorney. The small fee you pay a lawyer to assist you will be minimal when compared to the time, money and stress it will save you and your family. Think of it this way – if you own assets valued at $400,000 (if you include IRA’s, life insurance and house, this is a very modest estate), and it costs you $2,000 to do your estate plan, that’s ½ of 1% of your assets. Is it worth it to spend a minute fraction of your assets to make sure you don’t waste them on probate or taxes, and they go to who you want – without a dispute?

The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.

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DIY + Estate Planning = Trouble

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HammerOnNailCreating an estate plan is one of the most important gifts you can give your family. It helps provide them stability and comfort, as well as helping you save money. While you may be tempted to “do it yourself” (DIY), estate planning is not an area where DIY is typically successful.

There are many pitfalls in estate planning that can get you into trouble. For example, many DIY estate planners fail to file a gift tax return with the Internal Revenue Service (IRS). The IRS uses a gift tax compliance initiative allowing the agency to use land records from both state and local governments to locate individuals for gift tax audits. In other words, the IRS conducts searches for real estate transactions that involve little or no money exchanged, which commonly occurs in DIY estate planning.

A common mistake occurs when an individual attempts to save money by transferring real property to their family members by adding their name to the deed instead of creating an estate plan. While this strategy can effectively transfer ownership of the property, it creates serious tax consequences for the person transferring the property. Transferring real estate can constitute a gift and the IRS requires the transferor to file a gift tax return and possibly pay a gift tax.

It is important to note that even if you would not owe a gift tax, your failure to file a gift tax return could result in criminal penalties. In fact, a conviction for failing to file a gift tax return can result in a penalty of up to $25,000 and up to a year in prison.

The IRS has been increasing its enforcement of gift taxes. If you are considering creating an estate plan, let us help. Don’t get yourself into trouble or put your estate in jeopardy. Whatever amount you pay a lawyer to help you will be less expensive than a DIY disaster

The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.