DIY Estate Planning: Common Mistakes You’ll Want to Avoid
Doing your own estate plan can feel empowering—you save money up front, download a few forms, and check one more task off your list. Unfortunately, the hidden cost of DIY estate planning often shows up later, when loved ones are stuck cleaning up unintended (and expensive) consequences.
Below are three of the most common pitfalls I see as an estate-planning attorney and how to sidestep them.
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1. Adding Someone to a Joint Checking Account — The “Shortcut” That Backfires
A popular DIY move is to put a child or trusted friend on a bank account “for convenience.” The logic sounds simple enough: If I’m incapacitated, they can pay my bills; when I die, they can just keep the money.
Why it’s a problem
Unintended disinheritance. Under most state laws, the surviving joint owner becomes the sole owner the moment you pass away—no matter what your will says. Siblings or other heirs are left out in the cold.
Creditor exposure. Your co-owner’s creditors, divorce proceedings, or lawsuits can seize your account balance because legally it belongs to both of you.
Medicaid complications. Large deposits or withdrawals by the joint owner may be treated as gifts, jeopardizing eligibility for long-term-care benefits.
Safer alternative
Grant signing authority with a durable financial power of attorney (POA). A POA lets someone step in only when needed, keeps ownership clear, and avoids the creditor risks that come with joint ownership.
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2. Gifting the House (or Other Real Estate) Before Death — A Tax Time Bomb
Another common DIY tactic is to deed real property outright to children during your lifetime to “avoid probate.” While the transfer does bypass probate court, it often triggers a hefty, unnecessary tax bill.
Why it’s a problem
Capital-gains tax. Lifetime gifts pass along your original cost basis. If you bought your home decades ago, your kids inherit a tiny basis and face large capital-gains taxes when they sell.
Loss of control. Once you execute the deed, your beneficiaries are legal owners. Their creditors—or even an ex-spouse—can place liens, forcing a sale or refinance.
Medicaid look-back. Gifting property within five years of applying for Medicaid creates a penalty period, delaying benefits when you may need them most.
Safer alternative
Use a transfer-on-death (TOD) or beneficiary deed (if permitted in your state) or place the property in a properly drafted revocable living trust. Both options preserve the step-up in basis at death and keep you in full control during your lifetime.
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3. Assuming a Simple Will Keeps You Out of Probate — It Doesn’t
Many do-it-yourselfers draft a one-page will and call it a day, believing that because they “have a will,” their estate will bypass court. In reality, a will is simply your set of instructions to the probate court—it doesn’t eliminate the court process.
Why it’s a problem
Delays and costs. Probate can take months (sometimes over a year) and racks up filing fees, publication costs, and attorney’s fees that can eat into the estate.
Public record. Your assets, debts, and who inherits become part of the public file, eroding family privacy.
Out-of-state property. Owning real estate in more than one state triggers multiple probates (ancillary probate) unless you’ve used a trust or other non-probate transfer.
Safer alternative
Pair your will with non-probate tools—revocable living trusts, beneficiary designations, and TOD deeds—to move assets directly to heirs without court oversight. A trust can consolidate everything under one governing document, providing seamless management if you’re incapacitated and quicker distribution after death.
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Final Word (and Friendly Disclaimer)
Estate planning is one of those areas where “measure twice, cut once” really matters. The upfront cost of proper legal advice is almost always lower than the price your family may pay to untangle a DIY plan gone wrong.
If you’d like personalized guidance or just a second opinion at a plan you drafted, feel free to reach out. A well-crafted estate plan isn’t just paperwork; it’s peace of mind for the people you love.