Why Online Trusts Like LegalZoom and Trust & Will Are a Costly Mistake
In the age of instant gratification, the appeal of a low-cost, do-it-yourself (DIY) trust from an online service like LegalZoom or Trust & Will is understandable. They promise a fast, affordable way to secure your legacy. But when it comes to estate planning, especially trusts, a cheap, quick fix often turns into an expensive, drawn-out mess for your family when they need guidance the most.
The simple truth is: Trusts created without personalized legal guidance are highly susceptible to errors and often fail to be properly "funded," rendering them useless.
The Critical Flaw: Unfunded Trusts
A trust document, no matter how perfectly drafted, is just a piece of paper unless it is funded. Funding a trust means legally transferring ownership of your assets—like your home, bank accounts, investment portfolios, and business interests—from your individual name into the name of the trust.
The Online Trap: Document Creation, Not Execution
Online legal services are document preparers, not law firms. They excel at giving you a stack of paper, but they do not complete the critical step of funding the trust for you. They provide instructions, but they are often complex, state-specific, and overwhelming for a non-lawyer.
Real Estate Deeds: You have to draft and record new deeds with your county. A small error in the legal description or vesting language can invalidate the transfer.
Bank & Brokerage Accounts: You must contact each financial institution and complete their specific forms to re-title the accounts in the trust’s name. Institutions have been known to reject documents created by online services, stalling the funding process entirely.
Missing Assets: If you forget to transfer just one significant asset—say, your vacation home or a brokerage account—that asset will likely have to go through probate anyway, negating the primary benefit of the trust.
An unfunded trust is an empty bucket. At your death, it provides no protection and forces your family into the very court process (probate) you tried to avoid.
Generic Forms Miss Critical, Complex Details
Your life is not a generic template, and your estate plan shouldn't be either. Online services use standardized forms that cannot account for the unique complexities of modern life. An experienced estate planning attorney provides personalized counsel—something a computer questionnaire can never replicate.
A mistake made on a DIY trust isn't discovered and fixed until you've passed away, leaving your family to pay thousands of dollars in legal fees to clean up a mess that could have been avoided. In some documented cases, financial institutions have rejected online-created documents entirely, leading to expensive litigation.
The Value of Counsel Over Cost
The decision isn't about saving a few hundred dollars now versus paying nothing later. It’s about ensuring your wishes are legally enforceable and that your family is protected when they're grieving.
An estate planning attorney does more than just draft documents:
They Offer Counsel: They listen to your unique family dynamic, assets, and goals, providing legal advice tailored to your situation—something online services are legally prohibited from doing.
They Ensure Validity: They guarantee your documents are executed, witnessed, and notarized according to your state’s law.
They Fund the Trust: The most critical step. A quality attorney or their team will either handle the transfer of assets (deeds, account re-titling) or provide meticulous, personalized instructions and follow-up to ensure your trust is properly funded and operational.
Don't risk your family's future inheritance on a low-cost experiment. Investing in an experienced estate planning attorney now is the most responsible, cost-effective way to guarantee your legacy is protected and your loved ones are cared for.
CONTACT US today to schedule a free consultation for your estate planning needs.
