Why DIY Will Kits May Not Be Enough: The Case for Professional Estate Planning in Canada
In Canada, one of the most common questions we encounter is whether a do-it-yourself (DIY) will kit is sufficient for estate planning, or if it's worth investing in a lawyer’s services. While the allure of saving money with a DIY kit—often priced between $20 to $50 or even available for free—is strong, the potential risks are significant. Here’s why working with a lawyer might be the safer choice.
The Risks of DIY Will Kits
DIY will kits are widely available and can be tempting due to their low cost. However, they come with considerable risks that could jeopardize the effectiveness of your estate plan. Unlike lawyers, who carry professional liability insurance and are trained to navigate complex legal language and requirements, DIY kits often come with disclaimers absolving them of responsibility for any errors or omissions.
Sandra Foster, an esteemed estate-planning author, emphasizes the importance of a professionally prepared will. In her book, You Can’t Take It With You, she underscores that the legal landscape surrounding estate planning is increasingly complex, making professional guidance essential.
Real-World Consequences of Poor Estate Planning
Consider the tragic case of a multimillionaire businessman from Edmonton. Following a fatal car accident, the businessman’s will—intended to transfer his assets to his wife and then their daughter—failed to account for the daughter's ongoing divorce. Consequently, the assets ended up in the hands of her estranged spouse, leading to a disastrous outcome. While extreme, this example highlights how critical it is to have a meticulously drafted will.
When DIY Will Kits Fall Short
There are specific situations where a DIY will kit is likely inadequate:
Upcoming Marriage: If you’re getting married, your estate plan needs to reflect your new status and any legal changes that may arise.
Common-Law Relationships: If you have a common-law partner, your estate plan must address this relationship legally and comprehensively.
Separation or Divorce: Your estate plan should be updated to reflect changes in your marital status and asset distribution.
Minor Children or Dependents with Special Needs: Proper planning is essential to ensure their financial needs are met and guardianship is clearly defined.
Assets Outside Canada: If you own property or assets abroad, you may need additional legal documentation to address these assets correctly.
Business Ownership: If you own a business or a recreational property, your estate plan must address these unique assets to avoid complications.
Complex Family Dynamics: Issues such as forgiving debts or disinheriting family members require careful legal drafting to avoid potential conflicts.
The Bottom Line
DIY will kits often provide a one-size-fits-all solution that may not meet your specific needs. While they might be suitable for individuals with very simple estates, they are generally inadequate for more complex situations. A well-drafted will by a qualified lawyer ensures that your wishes are clearly expressed and legally binding.
Given that nearly 56% of Canadian adults do not have a will, even a basic DIY will is better than none. However, to safeguard your assets and ensure your estate plan reflects your true intentions, consulting with a legal professional is highly advisable.
Don’t leave your estate planning to chance. Contact a qualified lawyer to discuss your needs and create a plan that ensures your wishes are honored and your loved ones are protected.