Online estate planning services have become part of our culture. Scores of estate planning websites populate the internet. They promote the benefits of online document drafting such as the low cost and the ease of preparation.

Are these online services right for you? As an estate planner, I could easily dismiss online document drafting based upon my years of experience in complex estate planning that I know cannot be accomplished with online services. However, online estate planning services can be appropriate for the right consumer. Here is some guidance to determine if online estate planning is right for you.

1. Young people and families who cannot afford an attorney.

When you are young, most of your money is spent on pressing needs. Estate planning is typically not on the list of necessary expenses. In my experience, a basic estate plan for young families is advisable. So, if you can only afford an online plan, then that service may be the right choice for you.

If you have young children, make sure there are trusts for minors in your plan that name someone to manage the money for your children if both parents pre-decease them. In addition, the documents should allow for naming a guardian to care for the children if the parents have passed.

2. Make sure the documents are state specific.

Too often, form documents do not mention the state law that will apply in the interpretation of the documents. A good online drafting service should have state specific options. This is particularly important for powers of attorney. These documents name an individual to make decisions for you when you are unable to act for yourself. A well drafted financial and healthcare power of attorney with end-of-life instructions should be part of your estate plan. Make sure the documents mention your state of residence as the power of attorney forms will vary in content from state to state.

3. Beware of trying to address complex situations with online documents.

Online or software preparation services typically address basic estate planning issues. Once you introduce complex estate planning matters, you will notice that the online and software options become limited. While I cannot give you an exhaustive list, the general rule is that the more you have (i.e., children, grandchildren, family issues, different types of investments, multiple real estate holdings), the more complex your plan will be.

Here are some of the red flags that indicate online estate planning services may not be right for you:

1. You own business interests.
2. You want contingencies drafted for real estate, such as rights of first refusal and life estates.
3. You require complex testamentary trust planning.
4. You have a higher net worth estate.
5. There are special needs beneficiaries, including beneficiaries in nursing homes.
6. You have been married more than once.

Meeting with an attorney can flush out the facts of these issues and provide multiple solutions that can be tailored to your goals.

4. Long Term Care and Tax Issues.

As an elder law attorney, I can confidently say that the complexities involved in long term care planning cannot be adequately examined through an online service. How assets are protected from nursing home costs or how eligibility is achieved for Medicaid are not topics that will be addressed in document drafting services. Neither will the relationship between inheritance tax and capital gains tax be considered in an online estate plan. If you have savings and are concerned about managing taxes or protecting assets from long term care costs, you are best advised to get the counsel of an experienced elder law or estate planning attorney.

5. Execution Issues.

When documents are signed in an attorney’s office, there is a notary present, along

with witnesses. A paralegal and the attorney take notes about the meeting to ensure that the client is protected from claims of undue influence or lack of capacity allegations. With documents you obtain online, you are on your own to have them signed and notarized properly. The lack of an independent party to attest to the circumstances under which the documents were signed can expose the estate plan to legal challenges. If there are facts that suggest the documents might be challenged, visiting an attorney would be advisable.

If you have assets to protect and funds to cover professional advice, you may not be a candidate for online estate planning. Find a good attorney who will work with you on your plan over the long haul. There will often be changes in circumstances as you age that require documents to be altered. The ease of drafting changes can be less attractive with online services once you have a relationship with a lawyer who can be contacted and advised of the changes you want.

Matthew J. Parker, Esq. is an attorney at the law firm of Marshall, Parker & Weber, LLC with offices in Williamsport, Jersey Shore and Plains. For more information visit www.paelderlaw.com or call 1-800-401-4552.