Do It Yourself
Estate Planning Information
Homemade and attested: Handwritten and witnessed
Holographic: Entirely handwritten and unwitnessed
Form Wills: Preprinted fill-in-the-blank templates
Software Wills: Created through online services like
Nolo Press, LegalZoom, and RocketLawyer
Types of DIY Wills
Success Rate Research
Terminology:
Probated estate: A deceased individual’s
estate that is required to undergo probate court
Efficacy: Validity, effectiveness
Empirical: Information gathered through observation
and experimentation rather than through theory
or personal belief
Regarding the efficacy of do-it-yourself (DIY) wills in California, a research paper written by David Horton gives us empirical data and a look into the history of, and arguments for/against, the four types of DIY wills.
The study analyzes 1,133 probated estates: 457 from Alameda County (2007-2009) and 676 from San Francisco County (2014-2016).
DIY wills made up a similar share in both datasets of probated estates: 19% and 21%, respectively. In other words, on average 1/5th of probate court cases were a result of unsuccessful attempts at DIY estate planning. Since we don’t have data on estates settled outside of probate, or data on the percentage of individuals who use DIY estate planning instead of employing a licensed attorney, we cannot conclude the exact rate of success. However, it is conclusive that a large rate of probate cases stem from improperly executed DIY wills.
Here at Davis Wills & Trusts PC, we have never had an estate plan prepared by us go to probate court because it was prepared incorrectly. The guarantees and securities you gain from hiring a licensed attorney in your state cannot be matched by any variation of DIY wills or trusts. Moreover, the word scam can be attributed to service providers that cannot prove the efficacy of their product…including countless convincing pop-up software services advertised at very low prices online. Click below to see some of the thousands of complaints lodged with the Better Business Bureau against LegalZoom:
LegalZoom | BBB Complaints | Better Business Bureau
THE COST
of failed DIY estate planning
California Probate Fees
California probate fees are a percentage of the total
value of the estate without subtracting debts:
4% of the first $100,000 (total: $4,000 minimum for a $100,000 estate); plus
3% of the next $100,000 (total: $7,000 minimum for a $200,000 estate); plus
2% of the next $800,000 (total: $23,000 minimum for a $1 million estate); plus
1% of assets above $1 million
A comprehensive estate plan, which includes a trust, health care and financial powers of attorney, asset transfers, and all supporting documents that keep you out of probate court, costs average about 1/4th as much as probate costs for a $1 million estate, or less than ½ as much as the probate costs for a $500,000 estate. In addition, you save your family and/or inheritors the trouble of going through probate court, which usually takes at least one year in California, depending on the county.
Don’t forget!
Even a properly executed will can only give the court
- not your family - the power to settle your estate.
With a trust, you name a family member, friend or professional to serve as trustee. The trustee has power to distribute your assets without a court process. Your trust will have a detailed plan for who inherits, what they inherit, how they inherit, and when they inherit.
SUCCESOR TRUSTEE SERVICES
WE OFFER SUCCESSOR TRUSTEE TRAINING WEBINARS TO THE PUBLIC
JOIN US FOR A COMPLIMENTARY IN-PERSON OR VIRTUAL EDUCATIONAL EVENT!
TRUST ADMINISTRATION SERVICES ARE AVAILABLE TO ALL CLIENTS WHO HAVE MADE A TRUST WITH US
Action Steps
that you can do immediately
Check your deed – make sure you hold title in joint tenancy
Check your bank accounts – make sure you have joint tenancy or a beneficiary named
Check your retirement accounts – make sure you have primary and secondary beneficiaries
Check your life insurance – name a beneficiary – do not use “estate of”
Contact our office to schedule a time to meet and receive a secure client intake to get started.
Sooner,
When your time comes
— and it is a “when” not an “if” —
you will want to have a trust in place,
to ensure your family does not have to endure a long, expensive probate court process
to settle your estate.
A good trust and estate plan
can help keep relationships intact
and keep families together in the future.not later.
Get Started Today
Schedule your first meeting with us using the digital contact sheet below or give us a call at (530) 753-9266.