Computer Generated Wills - The Wall Street Journal's Take
Can you create a Will using a computer program or online? Of course you can. The Wall Street Journal has an article today comparing different computer programs to do just that.
The better question is: Should you create a Will using a computer program or online? The answer, like all answers to questions that have variables and complexities, is "maybe".
As Joel Schoenmeyer points out today in Death and Taxes -- The Blog:
The biggest program with the article is that it leaves out the most important question: did the documents accomplish what they were supposed to? By "supposed to," I mean "do the documents leave property to desired beneficiaries in the most efficient manner, with no ambiguities and the fewest tax consequences, and are documents valid under the relevant state law."
For some, computer generated Wills are a cost effective solution. I have referred people (generally single without children) to legal zoom to get a basic Will.
For many, it is the variables and complexities that need addressing. New Jersey has a $675,000 estate tax exemption and allows personal property to be distributed by a separate written letter (personal property being your jewelry, pictures, furnishings, etc.). New York has a $1 million estate tax exemption and does not allow personal property to be distributed via a letter - it must be in the body of the Will. California is a community property state, which means that couples have different rights to property (real estate, investments, etc.) in California than New Jersey - and those property rights continue even if they used to live in California when they got the property but now live in New Jersey. I prepare Wills all the time, and I would not try to address a California property law question without getting advise from someone who practices there.
The answer to "What should my Will say" depends on the questions asked. If not enough questions are asked, or if the right questions are not asked, then the Will might not solve your problems. While there is definitely a place for computer generated Wills, they aren't the solution for everyone, just as much as getting a lawyer prepared Will is not the solution for everyone.
Two touchstones in my mind of if you should see an attorney to invest in an estate plan - Do I have a taxable estate (remember to count death value of life insurance)? Do I have children? In these situations a lawyer may do a better job of asking questions and explain why the questions are important and what is behind them than a computer model.
Joel ends his post by noting:
[From WSJ] 'Each site purports to yield documents that clearly outline our intentions in the event of our demise or death, although we didn't hire a lawyer to review them. We're hoping that we—and our heirs—won't have to worry about it any time soon.'
There you go -- the author has spent $X on these programs, and has no idea whether they do what she wants them to do.
