Understanding the Risks of DIY Wills

Creating a Will is an important step in protecting your loved ones and putting a plan in place for what happens to your estate after you die.

In a world full of DIY solutions, it can be tempting to download a template, buy a Will kit, or use an online platform to create your own Will. It may seem like a quick and cost-effective option.

The problem is that a Will is more than a form with blanks to fill in.

Your Will needs to comply with legal requirements, work with your family structure and assets, and form part of the overall strategy for your estate. A mistake may not become apparent until after your death, when your loved ones are left to deal with the consequences.

Here are some of the risks to consider.

1. Your Will may not be legally valid

For a Will to be formally valid, it must meet certain legal requirements.

Issues with how the Will is signed or witnessed, or mistakes in the document itself, can create problems after your death. In some circumstances, an application to the Court may be needed to determine whether the Will is valid or to address an issue with the document.

That process can be expensive, time-consuming, and stressful for your loved ones. There is also no guarantee that the outcome will reflect what you intended.

A DIY Will may save money upfront, but fixing problems after death can cost an estate significantly more.

2. Your family circumstances may be more complicated than the template allows for

Modern families come in many forms.

You may have a blended family, stepchildren, children from different relationships, estranged family members, a new partner, or someone who relies on you financially.

Even seemingly simple terms can have unintended consequences.

For example, who is included if your Will refers to "my children" or "my grandchildren"? What happens if a beneficiary dies before you? What happens to their share? Are there people who may expect to inherit but are not included in your Will?

These are the types of issues that need to be considered when preparing an estate plan.

3. Your assets may not all be dealt with by your Will

A common misunderstanding is that your Will controls everything you own.

It doesn't.

Some assets may pass outside your Will, including jointly owned assets in some circumstances, assets held in trusts or companies, and superannuation and any life insurance held through your super.

Your superannuation does not automatically form part of your estate. Decisions about where it goes need to be considered as part of your overall estate plan.

If a DIY Will focuses only on the assets listed in the document, important parts of your financial position may be overlooked.

4. You may miss opportunities for tax planning and asset protection

Your Will can do more than simply divide your estate between beneficiaries.

Depending on your circumstances, there may be opportunities to structure your estate in a way that provides greater flexibility, tax benefits, or asset protection for your loved ones.

For example, a testamentary discretionary trust may be appropriate in some circumstances. It can provide flexibility in how assets and income are managed and distributed after your death.

Whether a structure like this is appropriate depends on your family, assets, beneficiaries, and goals.

A DIY Will is unlikely to give you advice about the options available to you or help you decide which approach best suits your circumstances.

5. Unclear wording can create disputes

When a Will is unclear, ambiguous, or doesn't properly deal with a situation that arises after your death, your loved ones may disagree about what you intended.

Disputes about the meaning of a Will can be emotionally draining and expensive. They can also delay the administration of the estate and reduce the assets ultimately available to beneficiaries.

Clear drafting cannot guarantee that nobody will ever challenge or dispute your estate. It can, however, reduce uncertainty and ensure your wishes are clearly recorded.

6. You don't know what you don't know

This is probably the biggest risk with a DIY Will.

When you're completing a template, you're usually answering the questions the template asks you. You may not know about the questions that haven't been asked.

An estate planning lawyer's role is not simply to type your instructions into a legal document. It's to understand your circumstances, identify potential issues, discuss your options, and help you put a plan in place that works for you and your loved ones.

Your estate plan should reflect your family, your assets, your values, and your goals.

DIY may cost more in the long run

A DIY Will may seem like the cheaper option today.

The real cost can arise later if your Will doesn't work as intended. Problems with validity, unclear wording, overlooked assets, family disputes, or the need for Court proceedings can leave your loved ones dealing with additional stress, delays, and legal costs at an already difficult time.

Your Will is one of the most important legal documents you'll ever make.

It's worth getting it right.

If you're ready to put an estate plan in place, or you're wondering whether your existing DIY Will is doing what you need it to do, we'd love to help.