The Real Cost of DIY Wills

DIY Wills, such as post office kits or online Wills made without legal advice, may appear to be a convenient and cost-effective way to get your affairs in order. In reality, these shortcuts come with risks and often lead to unintended distributions, legal disputes, delays in administration, significant extra costs and avoidable stress for your loved ones.

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What are the Common Unintended Consequences?

We regularly encounter issues with DIY Wills, many of which could have easily been avoided with proper legal advice and drafting. Some of these errors have cost tens of thousands of dollars to rectify and have caused significant delays in the administration of estates.

Here are some of the most common mistakes that DIY Wills have:

1. Improper Execution: Wills must be signed and witnessed in accordance with strict laws. It can be as simple as missing a date that could invalidate a Will. Whilst the Court sometimes validates informal Wills, doing so involves significant additional costs, uncertainty and delays.
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2. Ambiguous Wording: A Will that makes sense to you may be unclear to others which opens it up to being misinterpreted or even argued. Often there is no choice but for the Supreme Court to become involved and interpret the Will, which has significant costs and delays. There is also a risk that a gift you leave could lapse or it could go to the wrong person.
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3. No Residuary Clause: Many DIY Wills fail to give away all assets. Without a clause addressing the residue of your estate, assets may be distributed under intestacy laws (read more about this from our Blog Post: What Happens If I Die Without A Will?), potentially excluding your preferred beneficiaries and including someone you don’t want.
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4. Missing Information: DIY Wills often lack important information like guardianship instructions for minor children which leaves critical decisions to be made by others, or if disputes arise, by a court.
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5. No Contingencies: DIY Wills don’t often plan for contingencies like what happens if a beneficiary or executor dies before or at the same time as you.

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Is Legal Advice Really Essential?

The simple answer? Yes.

The most valuable part of having a lawyer prepare your Will is the advice and strategy that comes with it. It's not often the cost of the Will that you’re paying for, but this critical advice.

DIY Wills miss critical advice and often fail to consider the following:

• Ownership Structures: A common misperception is that jointly owned assets, superannuation, life insurance, and assets owned in Trusts or by companies are governed by your Will, when usually they are not.
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• Blended Families: Tailored advice for blended families is important to ensure the needs of children and step-children are balanced, whilst reducing the risks of future disputes. There are options available to assist with this that are a common oversite of DIY Wills.
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• Vulnerable Beneficiaries: Options such as protective trusts and Special Disability Trusts can help protect the inheritances of vulnerable beneficiaries including children, those with special needs or those unable to manage their own funds.
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• Executor Suitability: Your Executor has a significant role in managing your affairs when you pass away, but not everyone is suited for this role, whether because they’re legally not permitted or practically not suited. It is important to obtain advice on this.
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• Tax Issues: There can be tax consequences in estate planning that we help identify for you, and where appropriate, refer you to your accountant to obtain necessary advice. This can be from something as simple as gifting an asset to someone living overseas.
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• International Assets: It’s important to obtain advice on assets owned overseas to ensure your wishes are legally enforceable across multiple countries.

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Where is Your Original Will Stored?

An added benefit of us preparing your Will is that we will store it in our Deeds Safe free of charge.  

In comparison, DIY Wills are often stored by you at home, where they have a risk of being lost or destroyed. Importantly, it is not usually sufficient for someone to have a copy of your Will as there is a presumption that if you were the last person to possess it, and it goes missing, that you revoked it.

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Estate Planning Beyond Wills

Effective estate planning advice does not end with Will. You should also be obtaining advice on matters including:  

• Your Superannuation, whether you own a Self-Managed Superfund or are with an industry or retail fund
• Family Trusts
• Companies
• Enduring Powers of Attorney
• Medical Treatment Decision Makers

While DIY Wills may seem suitable at first glance, the potential for costly mistakes and unintended fallout is significant. Professional estate planning offers clarity, legal protection, and peace of mind, not just for you, but for your family too.

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Disclaimer: The information in this post is general in nature. This does not constitute legal advice and should not be relied on as such. Please contact one of our Lawyers if you are seeking advice about a specific legal matter.