Cookie Cutter Estate Plans
By Patricia Louise Nelson of Two Spruce Law
What is a cookie cutter estate plan and why do I recommend that you not get one? First, a cookie cutter estate plan is a Will and/or Trust that is so generic it is designed to suit anyone. They are cheap, non-customized documents that appear at first glance to get the job done. What’s wrong with that? In reality, they suit no one. Worse, they often create a great deal of complexity (meaning expense – both financial and interpersonal) in the administration of an estate. A few hundred dollars saved on drafting can result in several thousand extra dollars spent on administering a poorly drafted estate plan.
Of course, if you’re using a website or app to create your Will and/or Trust, you will get a cookie cutter estate plan. Those systems are designed so that you fill in information and the system puts that information in a template without any consideration of whether that information actually works in the overall estate plan.
Even if you are working with an attorney, however, you may get a cookie cutter estate plan, so watch for the tell-tale signs. What tell-tale signs? Well, if the attorney is simply writing down your choices for things like who will be in charge without pressing you to really consider your choices in light of the attorney’s personal experience with implementing estate plans, then you may be headed towards a cookie cutter estate plan.
An example of a question an attorney might ask that would tip you off that we are not headed toward a cookie cutter estate plan might be to question whether it will actually work for you to name your sister, Mary, your children’s beloved Aunt Mary, to serve as the trustee of the trusts you plan to set up for your children. One question about that could be whether Aunt Mary really has the time and knowledge to manage your trust assets. Serving as trustee is a job that can last for years.
Another question is how will Aunt Mary serving as trustee of your children’s trust impact the relationships between your children and their Aunt Mary. Sometimes having your beloved Aunt Mary in charge of “your” money can cause children to resent Aunt Mary and her refusals to spend the money mom and dad left you the way you see fit. Perhaps it might be better to allow Aunt Mary to be their sounding board and advocate and put someone else, perhaps a professional fiduciary, in charge of the money. Of course, the final decision is yours – it’s your money and your family. I think your plan is better after you’ve considered these questions and made an informed decision.
Find out more at: https://www.twosprucelaw.com/videos/why-you-should-avoid-online-wills
