When shortcuts turn into costly mistakes - DIY Estate Planning

The Dangers of Do-It-Yourself

When shortcuts turn into costly mistakes

It was a rainy afternoon when four longtime friends - Dipin, Deepak, Digambar, and D’Souza - gathered at their usual coffee spot. The cafĂ© had seen everything over the years: from career confessions to midlife musings. But today, Deepak had a troubled look on his face.

“What’s eating you, Deepak?” asked Digambar, sipping his cutting chai.

Deepak sighed. “It’s my cousin Anil. He passed away last month. He had tried doing his own estate planning using some online templates. Thought it was simple. Turns out it’s a total mess.”

“What happened?” D’Souza asked, leaning in.

“Well,” said Deepak, “he had drafted a will on his own, using a downloaded format. But he missed including his youngest daughter from the second marriage. The will hadn’t been updated in years, nor properly executed. Now the families are caught in a legal tangle. It’s heartbreaking.”

Dipin, the estate planner among them, nodded knowingly. “I’ve seen this too often. Estate planning isn’t a one-size-fits-all job. People underestimate the complexity, and DIY can do more harm than good.”

Digambar looked curious. “But what’s the big deal, Dipin? Isn't a will just a simple document saying who gets what?”

“I wish it were that simple,” Dipin replied. “Let me give you four key pitfalls people face with DIY estate plans.”

“First,” he continued, “people use generic templates that don’t reflect their unique family dynamics or asset structures. Anil’s case is a classic example - his template didn’t even include provisions for stepchildren or blended families.”

“Second, people forget that estate laws and tax regulations change. If you don’t stay updated, your plan becomes outdated. Professionals like me factor in both legal changes and your life changes.”

“Third, incorrect asset valuation can throw everything off. I’ve seen families fight because one sibling got undervalued property and another got stocks that later tanked. Valuations need to be done with precision.”

“And fourth,” Dipin said, “beneficiary nominations are often overlooked. People forget to update their insurance or PF nominations after life events like marriage, divorce, or births.”

Deepak nodded slowly. “Looking back, Anil’s intentions were noble, but he had no idea what he was missing.”

D’Souza added, “Even NGOs like mine need clear estate planning. We’ve had donors whose contributions were stuck in probate just because they didn’t consult a professional.”

There was a thoughtful silence.

Digambar broke it. “Dipin, I always thought estate planning was for the ultra-rich. But I realise now, with my business and joint properties, it’s high time I got serious.”

Deepak smiled. “Count me in too. I’ve learned the hard way from Anil’s case. It’s time we gave this the attention it deserves.”

Dipin chuckled. “Well, you know where to find me.”

And just like that, what began as a casual chat turned into a life-changing conversation. All three friends now saw the value of a well-crafted estate plan - done not by themselves, but by a trusted professional.

The content made available in this article is for general informational purposes only. While every effort has been made to ensure the accuracy and completeness of the content, it should not be considered as a substitute for professional consultation. 

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