Planning Can You Make Your Own Estate Plan, Or Do You Need a Lawyer?

Do you anticipate family conflict over your property when you die? Do you live outside of the U.S. or own property outside the U.S.? How much do you expect your estate will be worth when you die? Are you interested in avoiding probate for your estate? Probate is a court-supervised process that can cost your loved ones time and money. Do you plan to leave property directly to your loved ones, and are your plans straightforward? Or are you hoping to make more complex gifts?

You may want to name the age at which your children or other minors receive their inheritances. Or you only want to make a gift if someone satisfies a specific requirement. (Example: You want your niece to get an inheritance only if she goes to college.) Do you want to make a gift for someone's lifetime but then pass it to someone else? (Example: You want your spouse to be able to use your home while they are alive, but after their death, you want the house to pass to your children from a previous marriage.)

Do you want to make a gift to someone with special needs? Do you want to gift someone who can't manage their finances, even in adulthood or with significant debt? (Example: You want to leave money to your son with a gambling addiction.)

Whenever you leave money or other forms of property to minors, you need to name someone to manage it, at least until they become adults. However, you don't need a lawyer to make this arrangement; there are many ways to do this, simply in a living trust or will.

Many lawyers recommend refraining from making conditional gifts (gifts that require the recipient to fulfill a requirement). These gifts create confusion and, at worst, can make your will unenforceable. But you'll need to see a lawyer if you still want to make a conditional gift. In other situations, you should get advice from an experienced estate planning attorney.

1. You Anticipate Family Conflict

While most families won't end up fighting over a will in court, some certainly do. If you're worried about disputes—for example, you have children from a previous marriage who you expect will clash with your spouse—consider consulting a lawyer. An estate planning attorney can help you anticipate future problems and identify and express your exact wishes for what you want to happen to your property.

2. You Live Abroad or Own Property in Another Country

Simply living abroad doesn't automatically disqualify you from using U.S.based online wills and estate planning software. If you're temporarily working, studying abroad, or on active duty for the military, you probably still have ties to a U.S. state. For estate planning purposes, you can make a will or living trust using a reputable DIY product based on U.S. laws. But if you've permanently relocated to another country, you should use a lawyer well-versed in the laws of your country or region.

If you've moved abroad but own property in the U.S., you can still use a DIY product or form to make a financial power of attorney (POA). This document names someone you trust to manage that U.S. property on your behalf.

If you want to create a health care directive (also known as a "living will" and "medical power of attorney"), you should use the forms that are familiar to the medical professionals where you're currently living. This might mean consulting a lawyer in that country or using a standard form if one is available. Since a medical emergency can happen at anytime, you want your healthcare directive to be legally valid immediately in your country or region.

If you live in the U.S. but own a property abroad, you'll also want to consult a lawyer familiar with the country's laws to make plans for that property after your death.

3. You Might Owe Estate Taxes

Hardly anyone owns enough assets to trigger federal estate taxes when they die. Currently, for deaths in 2023, estates don't need to pay federal estate tax unless there's more than $12.92 million worth of property. This threshold amount is subject to change with the political climate, but even so, most people simply won't need to worry about it.

About a quarter of the U.S. states impose their state estate tax. While most of these states impose estate tax at a lower threshold than the federal estate tax—so that your estate may owe state estate tax but not federal estate tax—the tax rate for state estate tax is also lower.

If you own property valued in the millions and would like to explore ways to protect your assets from estate tax, consult an estate planning attorney specializing in transferring wealth.

4. You Have a Complex Goal for Your Estate Plan continued on page 2