With the growing coverage of artificial intelligence (AI) and its applications in our everyday lives, some people may wonder whether an AI program can create an estate plan for them. While AI can generate basic estate planning documents, such as wills and trusts, there is no guarantee they will be valid or enforceable.
Providing accurate information and executing the documents in compliance with your state’s laws is critical. Otherwise, your documents will not work as intended.
Most people lack the legal knowledge to determine which clauses and language to include in a will or trust to achieve estate planning goals. They are also not familiar with state laws or how to comply with them. This is why people rely on experienced attorneys to prepare the necessary documents to carry out their wishes.
Some state laws are complex and challenging to understand, and you may not know enough specifics to offer the correct information about your situation or verify that AI has correctly generated or created your will or trust. Additionally, your final documents may contain errors in wording, formatting, or grammar that render them unenforceable. To review them carefully, you have to know what to look for, which often requires that you possess a certain level of legal education and knowledge. The AI program does not understand your situation and will not help you solve a complex legal issue unless you can provide additional information. Even then, you should be cautious and ask yourself the following questions:
1. How well do I understand my options for protecting my money, property, family, or business if I have a medical emergency and after death?
2. Do I have a complex financial situation with large amounts of property, income, or debt?
3. Is my family structure complicated (family dynamics leading to questions about property or disinheritance)?
4. Am I undecided about my wishes (how to divide my money and property or what to include in an advance directive)?
Ease and Convenience versus Legal Expertise
Online estate planning programs that use artificial intelligence are designed to streamline or automate the process, making it more accessible and cost-effective for those on a tight budget. While they may offer convenience and accessibility, they provide limited guidance and do not offer the same level of customization, legal expertise, and personalization as an experienced estate planning attorney.
You must carefully consider your needs and circumstances before choosing a reputable online estate planning program, such as one of the following:
1. Quicken WillMaker & Trust
2. Trust & Will
3. LegalZoom
4. Rocket Lawyer
5. U.S. Legal Wills
Each program requires you to answer a series of questions in an attempt to tailor various legal documents, such as wills, trusts, advance directives, powers of attorney, and other estate planning documents, based on the information you provide. You may have trouble providing accurate and specific answers for several reasons:
1. Legal knowledge. Crafting precise answers to estate planning questions requires familiarity with legal terms, their context, and how they should be structured in a legal document.
2. Clear intentions. Vague or ambiguous answers can result in inaccurate, inadequate, or incorrect documents for your situation.
3. Complex legal requirements. Legal documents must adhere to specific formatting requirements, use particular language, and comply with state-specific legal requirements that vary and are not always straightforward.
4. Legal consequences. Specific instructions or clauses within a document require anticipating and avoiding potential legal issues; failing to do so can result in adverse legal consequences.
5. Omission and oversight. You may overlook critical details or legal considerations necessary to achieve your estate planning goals, resulting in incomplete or ineffective documents.
If you do not understand which estate planning strategies should be implemented to address your unique situation, how can you ensure that the software is creating the appropriate documents for your needs? Legal professionals have the necessary expertise and training to ensure that your concerns are addressed and can implement an adequate estate plan so that your wishes can be legally carried out.
Situations Requiring More Than a Basic Will
While a basic online will may be a viable option for some, an experienced attorney is helpful in the following circumstances.
Blended Families
If you have remarried and have children from a previous relationship, you must create a will or trust that ensures that your money and property are distributed in a way that considers both your new spouse and children from the prior relationship. You may have to make some complex decisions, which may be challenging to evaluate without legal advice.
Special Needs Planning
If you are a family with a dependent child or an adult with special needs, establish a special needs trust to provide for the ongoing care and financial support of your loved one while still maintaining their eligibility for government assistance programs. This requires a custom strategy to consider your options and ensure your trust is legally compliant in your state so that you can accomplish your goals.
Estate Tax Planning
If you are an individual with a large estate potentially subject to estate taxes, you will want to understand the latest tax-saving strategies, such as gifting, trusts, and other legal tools, to minimize estate tax liabilities and preserve a larger legacy for heirs.
Business Succession
If you are a business owner looking to pass your business on to the next generation or sell it upon retirement, you will need a comprehensive plan that effectively addresses the shift in ownership, management, and business assets for a smooth, successful transition.
Multistate or International Property and Heirs
If you have real property in multiple states, your heirs may be subject to estate administration across various jurisdictions, requiring consideration of varying state laws and potential tax implications. Having property and heirs in other countries creates even more complexity.
Asset Protection
If you have concerns about potential creditors coming after your hard-earned money while you are alive or creditors or ex-spouses taking the inheritance of your beneficiaries (spouse, children, loved ones, etc.) after your death, you will need an estate plan that has been specifically crafted to protect your life savings from potential creditor claims and legal challenges. This plan must include specialized provisions and be drafted in compliance with the law to ensure it is legally valid and not a fraudulent transfer.
Charitable Planning
If you want to include charitable giving in your estate plan, it may require establishing charitable trusts, foundations, or other organizations to support specific philanthropic causes while maximizing tax benefits. Each organization will have rules regarding gifts that you must follow to avoid negative consequences.
An estate planning attorney can address the unique needs and goals of you and your family. They will educate you about your situation and allow you to make informed decisions.
Errors That Make Online Documents Unenforceable
Estate planning attorneys help you avoid the following common mistakes in online documents that could make them unenforceable, require a court to interpret them, or lead to fighting among your loved ones:
1. Ambiguity in wording.
Ambiguity can lead to disputes and legal battles among potential heirs. Example: a will stating "I leave my property to my children" without specifying which children by name
2. Improper use of legal terms.
Misusing legal terms like property, beneficiary, or per stirpes can lead to confusion or incorrect interpretation of your intent.
3. Incorrect names or identities.
Misspelling the full name of a beneficiary or heir or using a previous name after a legal name change makes it challenging to identify the intended recipient.
4. Inconsistent terminology.
Using different terms to refer to the same asset (e.g., house, residence, property) may create confusion about what is being inherited.
5. Improper witnessing and notarization.
Failing to properly witness or notarize a will and other legal documents in accordance with state law can render them invalid and unenforceable.
6. Lack of clarity in distribution.
Vague instructions regarding who will receive your accounts and property or how they will receive them, such as "divide my estate fairly among my children," may cause disputes if there is no clear definition of terms like fairly.
7. Failure to address contingencies.
Not accounting for contingencies, such as what to do if a beneficiary predeceases you, can leave money and property without designated recipients, subjecting it to your state law.
8. Inadequate powers of attorney.
Failing to grant adequate powers of attorney, such as financial or medical decision-making authority, creates complications in managing affairs during incapacity and with advance directives at the end of your life. This could require your loved ones to involve the cou rt, which is what the powers of attorney were meant to avoid.
9. Conflicting instructions.
Providing contradictory instructions within a single d ocument or across multiple documents creates uncertainty about your intentions.
There are many considerations and potential scenarios that should be included in your estate plan. Online legal programs cannot adequately address unique situations or additional estate planning details, exposing you to unnecessary risks.
Experienced estate planning attorneys play a vital role in designing and reviewing state-specific forms that address your family's needs as well as ensuring that your wishes are met while preventing disputes in the estate administration process.
If you wish to use artificial intelligence estate planning programs, they can be used as an outline to begin the process. Take this information to an estate planning attorney to review and address the many situations you may not have considered regarding your unique family dynamics and financial circumstances. Legal experience and expertise offer valuable guidance and education. If you are ready to create a legally enforceable, customized estate plan, schedule your appointment with TULLER LAW.
If a loved one has recently passed and you are unsure what to do, please contact TULLER Law so we can help you restore stability and clarity to your life. Click here to schedule a meeting.
