DIY Estate Planning Software: Is It the Right Choice for Your Clients?

Having a comprehensive and easy-to-navigate estate plan is one of the most critical steps in protecting a client’s financial legacy and ensuring that their wishes are honored.

As a financial planner, you know the importance of such an estate plan in safeguarding assets, minimizing taxes, and providing clarity for loved ones.

However, clients often come to you with questions about whether they should use DIY estate planning software to create their own estate documents.

How can you best address their questions and steer them in the right direction toward long-term financial health?

At first glance, online DIY estate planning tools can seem like a cost-effective and convenient solution for clients looking to manage their estates independently.

And while there’s no denying their accessibility (and growing popularity), DIY estate planning software isn’t always as comprehensive as clients need—and may fall short in addressing unique circumstances or legal complexities.

Let’s look more closely at online will makers and other essential documents to explore their advantages and limitations. While these platforms can simplify the process of drafting basic estate plans, they often lack the personalization needed to address complex estates, unique family dynamics, or state-specific legal requirements.

What is DIY Estate Planning?

DIY estate planning refers to the process of individuals creating their own key estate planning documents, such as wills, living wills, powers of attorney, health care directives, and other estate planning documents, typically using online accounts or software.

These estate planning services are designed to provide a simplified approach to estate planning without requiring the involvement of an attorney.

Online estate planning platforms have gained popularity due to their ease of use, affordability, and accessibility, making them appealing for those seeking a quick solution to manage their legacy.

What DIY Estate Planning Software Can Offer

DIY estate planning software is designed to simplify the estate planning process, making it more accessible to individuals without extensive legal or financial knowledge.

These programs offer a range of features, such as:

Basic Document Templates:

Clients can create essential estate planning documents, such as a basic will, a revocable living trust, a health care power of attorney, and other documents that are important to an estate plan. These documents are legally binding, as long as they are executed properly.

Step-by-Step Guidance:

Most platforms provide guided workflows that walk clients through the process of inputting information and making decisions.

Cost Savings:

A DIY will based estate plan is often less expensive than hiring an attorney, which can appeal to clients who are budget-conscious.

Convenience:

Clients can complete their estate plans from the comfort of their homes, without scheduling appointments or needing attorney assistance.

For straightforward estate planning needs, DIY online tools can be helpful in drafting basic documents quickly and affordably.

That said, it’s vital that your clients know the limitations to DIY estate plans that could have a significant impact on their assets and wishes in the future.

The Limitations of DIY Estate Planning Software

While online estate planning software can be a big benefit to some individuals, it is far from perfect.

In fact, it’s important you make sure your clients know that relying solely on DIY solutions can leave significant gaps in their estate plan.

These platforms often fall short in addressing complex financial situations, unique family dynamics, or state-specific legal requirements.

Make sure your clients are aware of the following concerns surrounding DIY online estate planning software:

1. There is a Lack of Customization for Complex Situations

DIY estate planning software is best suited for individuals with simple financial circumstances. Clients with more complex estates—such as multiple properties, significant wealth, or business ownership—will find that these programs cannot address intricate planning needs.

For example, DIY tools often cannot handle advanced strategies like:

• Setting up trusts to minimize estate taxes or protect assets.
• Creating a legal document to address certain unique family dynamics, such as blended families or estranged relatives.
• Planning for international assets or cross-border tax laws.

When estate plans require tailored solutions, working with an estate attorney and financial planner ensures every detail is addressed comprehensively.

2. Errors and Ambiguities are More Common

Estate planning software relies on standard templates, which may not account for the nuances of state-specific laws or individual circumstances.

If a client inadvertently provides incomplete or incorrect information, it could lead to ambiguities or errors that may render their estate plan invalid.

For example, if a client uses DIY software to create a will that does not comply with state laws, their estate could become subject to probate disputes or legal challenges. Financial planners should emphasize to clients that professional oversight is crucial for ensuring documents are enforceable and error-free.

3. There is Limited Support for Unique Client Needs

DIY estate planning software often provides one-size-fits-all solutions that fail to account for unique situations, such as:

• Dependents with special needs who require long-term financial support.
• Charitable giving strategies that align with the client’s philanthropic goals.
• Medicaid planning or long-term care arrangements for elderly clients.

These specialized needs require expertise in areas such as elder law or charitable planning, which DIY tools simply cannot provide.

4. It Can Be Hard to Receive Expert Guidance

While DIY software may provide instructions, it lacks the personalized advice and strategic insight that estate attorneys and financial planners bring to the table.

For example, professionals can guide clients in minimizing estate taxes, avoiding probate, and structuring plans to address family dynamics—all of which are essential for creating effective estate documents.

DIY tools also fail to address potential challenges, such as disputes among heirs or unforeseen life changes, leaving clients vulnerable to future issues.

The reassurance that comes from professional expertise cannot be replaced by software.

Estate Planning Software: The Financial Planner’s Secret Weapon for Accurate and Affordable Estate Planning

You’ve managed to convince your client that DIY online estate planning is not the robust solution to their estate planning needs. But what is the alternative?

The answer lies in the adoption of well-designed estate planning software for your financial firm.

Benefits of Estate Planning Software

Professional estate planning software offers financial planners robust tools to help manage and customize clients’ estate plans efficiently.

These features go beyond basic document creation, enabling planners to deliver insightful, accurate, and comprehensive solutions.

Here are some of the standout benefits of such software:

Estate Report

Estate planning software provides detailed insights into critical estate components, such as wills, living trusts, beneficiaries, powers of attorney, advanced medical directives, insurance and benefits paperwork, and other non-probate directives.

This functionality ensures that all essential documents are accounted for, properly executed, and aligned with the client’s goals.

The Estate Report feature offers clarity by summarizing the estate plan comprehensively, making it easier for both planners and clients to visualize how their wishes will be carried out.

Asset Diagram

One of the most powerful features of estate planning software is the ability to visualize asset distribution using an interactive flowchart.

An Asset Diagram will provide a dynamic illustration of how all a client’s assets—such as real estate, bank accounts, IRAs, and other digital assets—flow under different real-life event scenarios. Planners can adjust asset values and beneficiary allocations in real-time, giving clients a clear picture of cascading effects, including tax implications and inheritance distribution.

This benefit empowers clients to make informed decisions and refine their plans based on changing circumstances.

Beneficiary Review

Keeping beneficiary designations up-to-date is crucial for ensuring a smooth transfer of assets and avoiding unintended conflicts or complications.

Estate planning software that allows for a beneficiary review enables planners to review transfer-on-death assets quickly, summarizing all assignments and providing last-reviewed date markers.

This ensures that beneficiary designations remain relevant and accurate, even as clients experience life changes such as marriage, divorce, or the birth of a child. By streamlining the process, this tool helps planners proactively address gaps and maintain comprehensive estate planning.

Streamlined and Interactive Planning

Estate planning software fosters interactive planning sessions, allowing financial planners and clients to collaborate in real-time.

By integrating document creation, visual diagrams, and financial analysis into one platform, planners can efficiently tailor plans to suit individual client needs. This functionality also simplifies the review and adjustment process, ensuring estate plans evolve alongside the client’s life circumstances.

Enhanced Legal Integration

Professional estate planning software often works hand-in-hand with estate attorneys, facilitating seamless collaboration.

This ensures that plans are both financially strategic and legally compliant. Attorneys can review documents created through the software and provide feedback to address legal nuances, maximizing the overall quality of the estate plan.

By adding estate planning software to your financial firm’s tech stack, you can deliver high-value estate planning services that are accurate, personalized, and adaptable.

These tools empower you to be able to address complexities while providing clients with the clarity and confidence they need when working to secure their legacy. Integrating such software into your financial firm elevates your services and ensures your clients are well-equipped to protect their future.

Comprehensive Estate Planning Starts with Holistiplan

Tailored estate planning is the cornerstone of helping clients achieve clarity, security, and peace of mind regarding their financial legacy.

With Holistiplan, financial planners have access to cutting-edge tools that take estate planning to a new level—streamlining workflows, reducing costs, and delivering exceptional service.

Holistiplan’s advanced features, such as real-time updates, customizable plans, and detailed financial analysis, make it ideal for managing both simple and complex estate plans. By integrating Holistiplan into your practice, you can ensure that every aspect of your clients’ financial future is meticulously planned and optimized.

If you are looking for estate planning software that can help your clients create a holistic picture of their finances, reach out to Holistiplan today.

Take your estate planning services to the next level with Holistiplan!