By Alex Kim, CFP®, MBA, CPA
In today’s digital age, it seems there’s an app for almost everything — including estate planning.
With just a few clicks, platforms like LegalZoom and Quicken WillMaker & Trust promise to help you draft a will, assign power of attorney, or even create a living trust, all from the comfort of your couch.
For people who are busy balancing the demands of their jobs, families and personal matters, an estate planning app can be a much-appreciated time-saver. Additionally, apps are more affordable than attorneys.
Estate planning apps offer undeniable convenience and cost savings, especially for those with straightforward needs. Most apps cover several aspects of estate planning, including wills, health care directives, living trusts, durable power of attorney for finances, and final arrangements.
But when it comes to securing your legacy, is digital simplicity enough?
There is no straightforward answer to this question. Much depends on each individual’s unique financial needs and future planning decisions. Even so — given the likelihood that most estate planning requires considerable customization — the answer is: probably not.
While apps might meet certain rudimentary needs, they are not set up to address a number of unique situations. Apps can guide you through the basics, but they can’t replace the nuanced advice of a seasoned estate planning attorney — especially when finances, family dynamics, or state laws are complex.
For example, blended families, special needs planning, business ownership, contested family situations or potential disputes, or out-of-state property can introduce legal intricacies that a one-size-fits-all app simply isn’t equipped to handle. But even if your estate planning needs are simple, these apps are not a substitute for professional counsel. A missed clause or misunderstood legal term could lead to costly probate battles or unintended consequences for your heirs.
Hybrid estate planning can carry hidden risks
Nevertheless, several estate planning apps were designed by attorneys to offer a range of educational resources beyond tutorials on how to use the app services. Some provide webinars on topics such as “What is an Estate Plan and Why Does Every Adult Need One?” or host events to address planning for the unique circumstances of a special needs adult.
Perhaps this accounts for the reason some people — especially younger individuals — take a “hybrid” approach by using estate planning apps as a starting point and then having their plans reviewed and finalized by lawyers. Even this scenario is not without risks that can end up being costly and time-consuming.
For one thing, it’s difficult to know if estate planning apps are current or even applicable in your state. If you unwittingly draw up your will with an outdated platform or one that doesn’t apply to your state, a lawyer reviewing the materials might need to rework the documents entirely. As a result, any cost savings gained from using a hybrid model can be lost.
The wiser approach might be to price-comparison-shop licensed estate planning lawyers in your state and use the attorney you settle on to draft your estate plan, from soup to nuts.
A matter of life and death
In the end, estate planning isn’t just about paperwork — it’s about life-and-death matters. Ultimately, it’s about peace of mind. Whether you’re passing down a financial gift, a home, a business, or a family heirloom, the right guidance can make all the difference in being confident that your wishes will be carried out after your death.
Moreover, paying extra money now could save your loved ones money later. While apps might claim to offer a quick fix, when it comes to your legacy, there’s still no app that can match the financial and legal wisdom of an estate planning professional.
Alex Kim is a Financial Planning Specialist and Certified Financial Planner™ who brings more than 17 years of direct experience in the financial-planning field, and more than 20 years in the financial services industry. Prior to MMBB, Kim worked at major financial services firms such as UBS, Merrill Lynch, and Fidelity Investments, as well as a “Big Six” accounting firm. He holds the CFP® certification, along with a CPA. Kim earned his B.A. in Accounting from Pace University and his M.B.A. from Columbia University.
