Are DIY will kits worth it?
We’re all being increasingly lured by the savings and convenience of online and DIY services, and the will kits now readily available may seem like a good option. However while the apparent simplicity and upfront savings are appealing, you need to keep in mind that your will is a very important document and there can be costly implications – both financial and emotional – if it’s not done effectively.
To help you, we’ve summarised a few things to keep in mind if you're considering a DIY will, as well as identifying some of the common traps to avoid.
In general, a DIY will may be appropriate in very straightforward circumstances, however where there are more involved assets, business or family affairs it can get a lot more complicated. Anyone who makes a will for themselves who is not legally qualified risks making mistakes that can have all sorts of negative and costly ramifications.
Common issues with DIY wills include:
1. The will is not completed, signed or witnessed correctly – this can render it invalid if not completed according to specific legal requirements.
2. Incorrect naming or wording is used – ambiguous wording is extremely common in DIY wills, where it can be misinterpreted and challenged.
3. Inappropriate conditions are placed on the granting of certain gifts, which are not then possible to enforce legally.
4. Trying to gift assets that may not be gifted under a will, eg: jointly owned assets.
5. You may need to consider the impact of debt and tax on the fairness of your asset distribution – i.e. if you allocate two properties to your children, but one has a mortgage with debt implications that makes the inheritance unequal.
Another important decision is choosing an executor. A common mistake is to appoint a friend as executor who may not have the ability to manage your estate effectively. Also, you should avoid someone with a potential conflict of interest – this may be a business partner or a family member if there’s the possibility of conflict over the estate.
One way to approach creating a will is to use a DIY kit as a research tool, but to supplement it with formal legal advice particularly where more complex issues are involved. A solicitor can provide advice on the myriad scenarios relevant to your personal situation to ensure your will is an effective document that really does carry out your wishes.
So in summary, make sure your will is carefully considered. You might save a few dollars up front doing it yourself, but there could be significant cost and stress to your family and other beneficiaries if there are issues down the track. Remember, it’s a very important document to get right – both for your own peace of mind and the future of those you love.
This article is for general information only and cannot be relied on as legal advice. You should seek formal legal advice on your specific circumstances.