Tag: online will

“Oh, We Didn’t Use an Attorney…We Bought It Online”

Because I regular comment about the risks and dangers of online estate planning documents, I’ll keep this post short.  The words above were heard by a banker friend of mine.  The context of the statement is just to good to not write a post about it.

The customers have a very elderly aunt (in her 90s) for whom they have power of attorney.  They brought the document into the bank because aunt needed to them to get into her safe deposit box.  So the banker sends the power of attorney to the bank’s legal department.  The answer back – “no.”  Why?  Because the power of attorney made a very general statement about financial powers and did not include the ability to access a safe deposit box.  The banker’s suggestion to them was to go back to the attorney who drafted it and have it changed.  They’re response was, “oh, we didn’t use an attorney . . . we bought it online.”  So, they had to go get elderly aunt who lives almost an hour away, bring her into the bank on a different day, and have her authorize drilling the safe deposit box (she had lost the keys).  Were they upset?  You bet they were!  But it was of their own doing.

And they were lucky!  How?  Because if aunt hadn’t been competent, they would have had to go to court to get the authorization.

Almost every attorney I know who specializes in estate planning includes a provision in the power of attorney to cover the above example.  Why?  Because it’s what we do.  We deal with it on a daily basis.  Although not having the one provision is not the point, we know that more and more financial institutions are requiring specific authority for different transactions such as accessing a safe deposit box.

Do you have a similar story?  Email me or share it in the comments below.  I always enjoy hearing from my blog readers.

Michael Lichterman is an attorney specializing in estate planning and helping provide peace of mind to families and businesses throughout Grand Rapids and West Michigan.  He specializes in Whole Family Wealth™ planning for professionals with minor children, doctors/physicians, nurses, lawyers, and the “sandwich generation” (caring for parents and children) – and does so from a Christian perspective.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

The Cheap, Online Will – A Real Life Example

Ok, you just have to read this post from Gregory Luce.  He is in the process of evaluating the differences between an online will and one drafted by an estate planning attorney.  He gives a very fair, well-reasoned analysis of the document and “extras” along with it – the positives and the negatives.  As can be expected, there are flaws in the document.  I encourage you to read the comments at the bottom of the post as they point out many areas of concern.  Some of the items could cause the “effect” of the will to be drastically different than what Mr. Luce intended.

Of course I made sure to add my $.02, which centered on the wholly inadequate guardianship provisions.  I regularly refer to 6 common mistakes that parents make when naming guardians for their children and most, if not all, of them show up in this situation.

Read the post, read the comments, and then let me know what you think.  Sure, it may be less in the short run to do the cheap online will and have the misplaced peace of mind it provides.  But at what cost?  Disinheriting a child?  Having someone challenge it and win?  Having someone taking care of your children who you would never choose . . . or not in the order you would choose?  I look forward to your comments!