The Rise of DIY Estate Planning Tools (and When to Use Them)

Estate Planning Goes Digital

It used to be like this: you have sixty minutes to speak with your attorney, and every minute pains your wallet. Estate planning used to involve meeting with attorneys and financial advisors, which were costly and inaccessible. Technology has made estate planning easier and more affordable, but what estate planning tech is actually trustworthy?

In this guide, we will go over valid DIY estate planning tools, pros and cons, how to use them correctly, and mistakes to avoid.

The New Era of DIY Estate Planning

Estate planning used to mean hiring an attorney, and everyone knows what that means. You often had to pay thousands in legal fees. Now, online platforms like LegalZoom, Trust & Will, and others offer step-by-step estate documents at a fraction of the cost. You can choose from convenient templates and create a valid will within minutes.

Drivers of the DIY trend

More people are understanding the need for estate planning. It’s not just your last wishes: it ensures your loved ones are financially and emotionally protected. It also lets you choose medical treatment, who represents you, and more. But traditional estate planning is expensive and confusing. DIY estate planning is trending for how convenient and affordable it is.

Advances in automation and digital legal services

Where there’s a need, technological advances will follow. Many advances, such as e-signatures and templates, have allowed for DIY estate planning to become a valid thing.

Affordability and convenience for busy families

Many people are busy, working hard yet still facing financial challenges. Estate planning often gets set back compared to other priorities. With the help of DIY estate planning, people are able to draft valid estate plans affordably and swiftly.

The pandemic’s push toward remote, online legal services

A lot of services became remote and digital during the pandemic. Legal services are one of them, driven to become more accessible to the masses at home.

More people than ever are creating wills, trusts, and powers of attorney with a DIY estate planner.

What DIY Estate Planning Tools Offer

Online will creation

Online will creations are affordable and fast. You can even get an attorney to help you out over the internet, which means legal advice on your sofa without breaking the bank. If you hire an attorney, it could cost thousands of dollars, but online will creation is much more accessible.

LegalZoom provides customizable, state-specific estate planning packages that can be completed in minutes. It starts at $99 for will creation. You can also opt for a premium will creation setup for $249, which even includes a real attorney review and advice. Of course, online will creation will cost more than writing a will by hand, by yourself, which can be for free.

Revocable living trusts

A living trust lets you obtain more control over your asset distribution. It also provides more privacy since unlike a will, trusts can bypass probate court for distributing assets.

Revocable living trusts can be conveniently made through online estate planning services. Revocable means you can modify your trust details easily without needing a court order or beneficiary consent.

Power of attorney

Someone with power of attorney has the authority to make legal, financial, and/or medical decisions on your behalf. You can sign a power of attorney document online for convenience.

Healthcare directives

You can create a healthcare directive online to outline what medical treatments you do and do not want to receive. This is crucial because if you ever get incapacitated and cannot consent to treatment, the healthcare directive can inform physicians and agents of your wishes.

Beneficiary designations and document storage

A DIY estate planning tool lets you easily choose your beneficiaries and store your documents digitally. This makes for easy access.

Features that make DIY estate planning tools appealing

Guided forms and templates: Facilitates estate planning by telling you what key components you need to go over.

Electronic signing and notarization: Some states require notarization to verify your identity and the document’s authenticity.

Secure cloud storage: You want your digital estate plan to be secure, with backups in case something happens.

Affordable pricing: You can often finish planning a basic estate in under $200, which is much cheaper than hiring an attorney.

The Advantages of DIY Estate Planning

Affordability

DIY estate planning costs a fraction of hiring a lawyer. Attorneys could cost thousands of dollars for estate planning, and be very expensive if you have complex estate needs. DIY estate planning typically costs less than $200, and can be even cheaper if you only need a basic will.

Convenience

Online DIY estate plans let you create and update documents anytime and from anywhere. This is perfect if you live a nomadic lifestyle or just want to get the estate plan done quickly from where you are.

Accessibility

Planning out your estate can be stressful, time-consuming, and emotional. DIY estate planning tools are fantastically valuable for people who might otherwise delay planning. Even a basic online will, which may take only minutes, can protect you and your loved ones for decades to come.

Speed

With convenient estate planning tools, you can obtain essential documents in a single session. Simple wills could only take minutes. This saves you a lot of precious time.

Education

DIY estate planning services can teach users about key estate planning concepts through guided prompts and templates. You can also obtain personalized advice through online calls with real attorneys.

Pro tip: DIY tools can be especially useful for straightforward estates or as a starting point before consulting an attorney.

When DIY Estate Planning Works Best

Simple estates

DIY estate planning works best for simple estates. People with modest assets, clear beneficiaries, and little debt can easily plan out their estates using DIY estate planning platforms.

Young families

If you have any minor children, you need a valid will to assign guardianship in case you pass away. Otherwise, the court would decide where your minor children go, and they may end up in foster care. Online DIY estate plans are great for parents naming guardians and setting up basic protections for their minor children.

Single individuals with no dependents

You may think you don’t need an estate plan because you have no dependents, but single individuals actually benefit greatly from DIY estate plans online because they still need healthcare directives. Otherwise, you may not receive the medical treatment you want.

No complex property or business holdings

People without complicated property, business, or tax needs can use DIY estate planning tools for convenience and affordability.

First-time planners

Those who need a foundational plan that they can later refine should consider using a DIY estate planning tool. Working on top of a basic will makes it easier to think about what else you need later.

People comfortable with technology

It is easier to use DIY tools for estate planning if you are familiar with online forms and digital document storage. Otherwise it could be frustrating to navigate different websites and e-signature options.

Example: A young couple can easily use LegalZoom to create a will, name a guardian for their infant child, and buy an Ethos life insurance policy for financial security, all within a weekend.

The Limitations (and Risks) of DIY Estate Planning

DIY estate planning is powerful, but not foolproof. Here are some of the common limitations or problems with DIY estate planning.

Complex estates

Large assets, multiple properties, or blended families require customized legal language. There may be disadvantages if you do everything online by yourself.

Tax planning challenges

DIY tools typically don’t handle advanced tax strategies or state-specific estate tax rules.

Potential for errors

Missing signatures, wrong witnesses, or incomplete information can invalidate documents. This is a risk of all estate planning types.

Limited legal advice

Many DIY platforms can’t give personalized legal counsel or represent you in court. LegalZoom lets you connect with attorneys for advice, but does not have the same advantages and representation as hiring an attorney in person.

Updates and oversight

Life changes (marriage, divorce, new property) require regular updates that users may forget. If you hire an attorney, they may remind you every few years to update your will or trust.

When to Involve a Professional

• You own multiple properties or businesses
• You have significant assets or investments
• You’re in a blended family or have complex relationships
• You want to minimize estate taxes or set up long-term trusts
• You’re unsure how your state’s inheritance laws apply

Of course, you can also opt for a hybrid approach. You can start with a DIY platform like LegalZoom for core documents, then consult an estate attorney to review and fine-tune your plan.

How DIY Tools Integrate with the Rest of Your Estate Plan

Many people benefit from combining digital and traditional elements of estate planning. You can store digital copies of your will and trust securely through online estate planning tools. You can also online estate documents with a life insurance policy from Ethos to ensure immediate liquidity for heirs.

Digital estate plans mean you can use password managers, digital vaults, or cloud storage to make your plan easily accessible to your executor or trustee, while still being secure and private.

Tips for Making the Most of DIY Estate Planning

Choose a reputable platform

Stick with trusted, legally compliant services like LegalZoom. Some platforms may offer cheaper rates or look legitimate, but do not actually help you create valid wills and other documents. It is best to pick a platform with verified reviews from large batches of users.

Understand your state laws

State laws can greatly affect how you need to plan your estate. Ensure your documents meet state-specific signing and witness rules.

Keep it updated

It is crucial to review your plan every few years or after major life events. You may need to update your executors and beneficiaries.

Check out our special guide on How Often Should You Update Your Estate Plan for more information, from periodic review checklists to common mistakes you should avoid.

Communicate and store your wishes

You can create a Letter of Instruction to detail your final wishes and messages. It is an informal letter that can provide guidance and reasonings to your loved ones, executor, and trustee.

In addition, tell your executor, family, and beneficiaries where your estate plan documents are going to be stored.

Add professional support when needed

Lawyers, financial planners, and insurance providers can help refine your plan. If you have the budget, add in professional support to ensure you’re on the right track.

The Future of DIY Estate Planning

Integration with AI

The DIY model is evolving into a collaborative partnership between technology and professional expertise. Artificial intelligence is already being added to many online estate planning tools. In the future, tools will become smarter, adapting recommendations to life events and financial changes automatically.

Blockchain-backed digital wills

Blockchain technology seeks to make digital contracts more secure and efficient. It is possible for blockchain wills to be the future of digital wills, being secure, tamper-proof, and instantly verifiable. Making digital estate documents even more secure and fast is a promising goal, so we are eager to see how this technology evolves in the next few years.

Hybrid legal services

More and more law firms are starting to integrate artificial intelligence into their work. Human attorneys can use AI to speed up and improve their legal services for more efficiency and accuracy. However, hybrid legal services remain quite controversial. Many law firms still need to work on how to best mix together AI plus human attorney review properly so that there are no AI hallucinations and mistakes.

Growing accessibility

It is everyone’s hope that estate planning will become more affordable and inclusive for all income levels.

Estate Planning Made Simple

DIY estate planning tools like LegalZoom are revolutionizing how people protect their families, making estate plans faster, cheaper, and more accessible than ever. But they’re not foolproof, and not for everyone.

People with simple estates, budget constraints, or difficulty starting an estate plan should start with a simple online will today. You can always refine your estate plan over time as your life, relationships, and finances evolve.