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CHAPTER 18 n KEEP YOUR PLAN CURRENT p
What Value a Lawyer Can Add
awyers aren’t cheap, so it’s reasonable to ask why you need one rather
than relying on books or software and Web sites that help you create
your own documents at a fraction of the cost. We can expect more people to ponder that issue now that the exclusion from federal estate tax is $5.43 million a person ($10.86 million per couple). Especially if you don’t need sophisticated tax advice, you may be tempted to save some money and forgo professional help. The risk of doing that and relying on do-it- yourself estate products is that your documents might not accomplish your wishes, mistakes will delay the administration of your estate and sorting things out after you die will saddle your heirs with hefty bills.
A will is the document people most often try to do themselves, and the one most fraught with land mines – some of which only an experienced lawyer can spot. One problem that often arises with do-it-yourself products is inadvertently cutting a family member out of your estate plan. For example, some software will automatically disinherit a special needs child if you answer yes-or-no ques- tions a particular way. (If you have such a child, always get professional help.)
Certainly not every will written without a lawyer leads to a horror story, and some written by lawyers go awry, too. But owning a home, be- ing married or having children complicates estate planning and increases the risk of foul-ups. Even now that we can each pass $5.43 million free
of federal estate tax, some married couples will face decisions about whether to use trusts for non-tax purposes.
If you have a lawyer prepare your will and perhaps a life insurance trust (see Chapter 8), she may throw in the other, simpler documents for free, or for a nominal additional cost, and useful help to go with them. For example, with a durable power of attorney, a lawyer can help you determine what rules apply in your state and whether, if you own real estate in more than one state, you will need a power of attorney in both. Other issues you might cover in a consulta- tion: Whom can you trust? What powers should be included (for example, the power to make gifts or create a trust)? When should the document take effect?
Likewise, with a health care proxy, the rules vary from state to state – whether you can appoint more than one person and whether you can name a successor, for example. If you’re not sure about whom to choose, you may want to discuss that with someone experienced in these matters.
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