A $6M Bet on DIY Wills: An Expert Attorney’s Perspective on the Risks
Recently, the estate planning world took notice as another online, do-it-yourself (DIY) platform announced a significant, multi-million-dollar funding round. Investors are clearly betting big on the idea that technology can automate one of the most personal and legally complex processes a person will ever undertake. The appeal is obvious: these platforms promise a fast, cheap, and easy way to create a will or trust from the comfort of your couch. But is it a safe bet for you and your family?
As a New York estate planning attorney with over 30 years of experience, I see this news not as a threat, but as a critical opportunity for a public conversation. Technology is a powerful tool, but it is not a substitute for counsel. An estate plan is not a mere commodity to be purchased like a toaster; it is a bespoke legal strategy designed to protect your life’s work and your family’s future. The team at Morgan Legal Group understands that while a $6 million investment is impressive, it cannot replicate the nuance, foresight, and fiduciary care of a dedicated human attorney. This article will explore what this trend means for New Yorkers and why the perceived convenience of DIY platforms often hides a world of risk.
The Allure of the Algorithm: Why DIY Platforms are Popular
There’s no denying the appeal of online estate planning services. They tap into several powerful consumer desires and address common barriers that prevent people from creating a plan in the first place.
Perceived Cost Savings
The most significant draw is cost. Creating a will or trust through an online platform can seem significantly cheaper upfront than hiring an attorney. For a few hundred dollars, you can generate a set of documents that look official and feel complete. This price point is attractive to young families and those with modest estates who believe their situation is “simple.”
Convenience and Speed
These platforms offer unparalleled convenience. You can create your documents on your own time, without needing to schedule an appointment or travel to a law office. The process is often gamified with progress bars and simple questionnaires, giving users a sense of accomplishment and speed. In a world accustomed to on-demand services, this is a powerful selling point.
Overcoming Procrastination
Estate planning is a task many people put off because it feels overwhelming and forces them to confront their own mortality. DIY platforms break down the process into manageable steps, making it feel less daunting. They provide a clear path to “getting it done,” which can be a powerful motivator for chronic procrastinators.
While these benefits are real, they only tell one side of the story. The value proposition of these platforms rests on the dangerous assumption that all estate plans are created equal and that the user knows exactly what they need. This is where the model begins to break down.
The Fundamental Flaw: A Form is Not a Plan
The core issue with any DIY legal service is that it is a document-generation platform, not a legal counseling service. It can fill in blanks on a template based on your answers, but it cannot ask the critical follow-up questions or spot the hidden complexities in your life that a human lawyer is trained to identify. An estate plan is a strategy, and a document is just the tool used to execute that strategy.
A Template Cannot Understand Your Family Dynamics
Consider these common scenarios that a software algorithm cannot navigate:
- Blended Families: How do you provide for your current spouse while ensuring your children from a previous marriage are not unintentionally disinherited? This requires careful, nuanced drafting that often involves specialized wills and trusts.
- A Child with Special Needs: Leaving an inheritance directly to a child with a disability could disqualify them from vital government benefits like Medicaid and SSI. A specialized “Special Needs Trust” is required, which is far beyond the scope of a standard template. This is a key area of elder law.
- A Beneficiary with a Substance Abuse or Spending Problem: A simple will would give them a lump sum inheritance that could be squandered or cause harm. A human attorney would recommend a “spendthrift trust” to protect the beneficiary and the inheritance.
- Anticipated Family Law Disputes: If you anticipate a will contest, an attorney can help you build a record and draft a strong “no-contest” clause, measures a simple form cannot take.
A Form Cannot Provide Legal Advice
These platforms are legally prohibited from providing legal advice. Their disclaimers are very clear on this point. This means they cannot answer crucial questions like:
- “Should I use a will or a trust to achieve my goal of avoiding probate?”
- “How does owning a business in New York City affect my estate plan?”
- “I own property in both New York and Florida. What are the legal implications?”
- “How can I protect my assets from future long-term care costs?”
Answering these questions is the very definition of legal counsel. Without it, you are simply guessing at which legal tool is right for you.
The Hidden Costs and Unseen Risks of a DIY Estate Plan
The initial savings of a DIY plan can be dwarfed by the long-term costs of fixing the mistakes it creates. The errors in a faulty estate plan are often not discovered until after you have passed away, leaving your family to deal with the expensive and heartbreaking consequences.
Improper Execution: An Invalid Document
New York has very strict and specific rules for how a will must be signed and witnessed. A small error in this “execution ceremony” can invalidate the entire will. While a DIY service may provide instructions, it cannot supervise the signing. A human attorney, like those at our firm, supervises this ceremony to ensure it is flawless, often including a self-proving affidavit to make probate smoother. A flawed execution means your will is worthless, and your estate will be treated as if you died without a plan.
Failure to Fund a Trust
Many online platforms now offer revocable living trusts. They will happily generate a 50-page trust document for you. However, a trust is an empty vessel until it is “funded”—meaning you must retitle your assets (your house, bank accounts, etc.) into the name of the trust. This is the most critical step, and it is the one most often missed in DIY planning. An unfunded trust is completely useless for avoiding probate.
Ignoring Non-Probate Assets
A DIY will cannot account for your non-probate assets, such as your 401(k) or life insurance policies. These assets are controlled by beneficiary designations, which supersede your will. An attorney conducts a holistic review of all your assets to ensure your entire plan is coordinated. A DIY platform can’t do this, leading to situations where an ex-spouse might inherit a retirement account against your current wishes.
The False Sense of Security
Perhaps the greatest danger of DIY estate planning is the false sense of security it provides. You click “print,” sign the documents, and believe you have protected your family. In reality, you may have created a legal ticking time bomb. The errors will only detonate after you are gone, when it is too late to fix them. The cost of probate litigation to interpret an ambiguous clause or fix a flawed plan can easily run into the tens of thousands of dollars, wiping out any initial savings. You can find more information about these risks from neutral sources like the American Bar Association.
The Irreplaceable Value of a Human Attorney
The investment in a human lawyer is not just for a set of documents; it’s for a relationship and for personalized counsel. An attorney is a fiduciary, legally and ethically bound to act in your best interest. An online platform is a software vendor.
Customized Strategic Planning
A good estate planning attorney doesn’t start by asking what documents you want. They start by asking about your life, your family, your assets, your fears, and your goals. They are trained to spot issues you would never think of.
- They will discuss tax planning to minimize New York’s estate tax.
- They will integrate elder law strategies to plan for potential long-term care costs.
- They will create a plan for business succession.
- They will ensure any planning for children avoids court-supervised guardianships.
This is a 360-degree strategic process that a questionnaire cannot replicate.
Navigating Legal Nuances
The law is complex and ever-changing. An attorney like Russel Morgan, Esq., understands the nuances of New York law, from the spousal right of election to the rules governing holographic wills. They can draft documents with precision to achieve specific outcomes and avoid unintended consequences. For example, they can craft a power of attorney that gives your agent the specific powers they need while limiting the potential for elder abuse.
A Relationship for Life
An estate plan is not a one-time event. It needs to be reviewed and updated as your life changes. Your attorney becomes a trusted family advisor. When you have another child, when you buy a business, when a tragedy occurs, you have a professional to call who already knows your situation. This long-term relationship is one of the most valuable aspects of working with a law firm.
What Does the $6M Investment Really Mean?
The influx of venture capital into legal tech is a sign that there is a huge, underserved market of people who know they need an estate plan but have been deterred by cost and complexity. These platforms are successfully tapping into that need. However, it also signals a future where legal services may become a two-tiered system:
- A low-cost, high-volume tier for those with the “simplest” of situations, who are willing to accept the inherent risks of a templated solution.
- A high-value, counsel-based tier for those who understand that the cost of professional advice is an investment in certainty, security, and peace of mind.
Our firm firmly believes that every family, regardless of wealth, deserves the latter. The stakes are simply too high to gamble on a template.
Conclusion: An Investment in Certainty
The news of another well-funded online legal platform is a reminder of the world we live in—one that constantly seeks technological shortcuts. In many areas of life, this is a positive development. But when it comes to the legal protection of your family and your life’s work, a shortcut can lead you off a cliff.
The real cost of an estate plan is not the fee you pay to an attorney; it’s the price your family will pay if the plan fails. A few hundred dollars saved now is meaningless compared to the tens of thousands lost in probate litigation or the family home lost to a nursing home because of a faulty plan. The smart money—your money—should be invested in the certainty and peace of mind that only personalized, professional legal counsel can provide.
At Morgan Legal Group, we are committed to providing that counsel. We believe in building customized, robust estate plans that stand the test of time and protect what matters most. Before you entrust your legacy to an algorithm, we invite you to understand the difference that a human advisor can make. Contact us today for a consultation and let us show you the value of a true legal partnership. You can see what our clients say about our approach on Google.
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