Protecting Your Legacy: The Dangers of Will & Estate Kits
Estate planning has always been a complex and challenging task. Traditionally, it involved a consultative legal approach that led to the creation of a will. Today, with rapid technological developments, many are turning to will kits and online resources as a cheaper and simpler way to create a will.
While it may be tempting to take advantage of these resources, they often lack the legal expertise required for such an important task and are not tailored towards your unique situation. They may also lead to future legal and financial issues, both of which can be avoided by seeking solid legal advice.
In this article, we will explore the dangers of relying on will kits and estate planning resources and why consulting an experienced lawyer is the best option.
What is a Will Kit?
A will kit is a resource that enables individuals and families to draft a will or estate plan without the assistance of a lawyer. Available for download via the internet, these kits typically comprise a template accompanied by comprehensive instructions which guide individuals through the process of creating a will. This includes a basic analysis of how to name beneficiaries, distribute assets, designate an executor and other essential components.
Whilst these have proven to be cost effective tools for estate planning, there are several downsides that we think you should be aware of.
1. Lack of Customisation
Creating a will that accurately reflects your wishes and meets your unique estate planning needs requires careful consideration of your individual circumstances and assets. With a generic will kit, there may be limited options when it comes to approaching complex situations such as blended families, business succession planning, and special needs trusts.
Often, these elements must be incorporated into the will in a specific way, which a generic will kit will fail to achieve.
2. Risk of Errors and Omissions
Will kits fail to provide an adequate level of legal expertise and knowledge as a solicitor, which increases the risk of mistakes and oversights. The most common form of errors in creating a will are the risk of improper execution, failure to include provisions and conflicting instructions for the executor.
These fundamental aspects are central to how your will is managed. When omissions arise, it can cause an improper distribution of assets, beneficiaries being disinherited and tax consequences. All of these can be mitigated with the advice and counsel from a qualified solicitor.
3. Invalidation of the Will
Often, people who use a generic DIY will kit often create an invalid will. One of the main reasons for this is because will kits may not consider the local legislation that sets the guidelines for wills within a jurisdiction.
In New Zealand, the Wills Act 2007 formally sets the guidelines for wills and estate planning. Failing to comply with these requirements can render the will invalid, causing significant problems for the beneficiaries.
4. Security of the Will
Generally, a will can be completed by a qualified lawyer and stored in a secure location at no additional charge. When completing a DIY will, it can more easily be susceptible to being lost, causing future legal challenges.
If a will is determined to be lost, the Supreme Court will likely determine that the will has been destroyed by the will maker (with the intention of revoking it) and is therefore invalid. To ensure your will is safe and secure, consult a qualified lawyer in preparing your will.
5. Language, Wording and Structure
Wills which are not prepared by a legal expert are often so poorly drafted to the point where some of, if not all the will is rendered invalid. As a will is a complex legal document, it must be carefully drafted so that the language and wording give full effect to the will maker’s intention.
With improper wording, certain elements of the will may face legal obstacles. For example, if a will maker writes “John Smith gets all of my money”, it is unknown whether this includes investments, property or just cash. It is therefore recommended that a will is drafted by a qualified lawyer, to avoid simple mistakes in language and structure.
For more information on will and estate planning, and how to protect your assets, contact Quay Law on 09 523 2408
