A pickleball friend was pleased with himself for completing his living trust.
Over a game of pickleball, he told me he had recently completed his entire estate plan online. “It was cheap,” he said with a grin. “The site walked me through it all.”
He and his wife had just created the online trust in preparation for a trip to the Grand Canyon and sightseeing helicopter tour. “We’re all set,” he said.
He described what they had and I was very concerned.
They created trust documents online, but hadn’t taken the essential steps to fund the trust. There was no transfer paperwork for the home or other assets into the trust just the printed trust paperwork. Their property and bank accounts were still in their individual names and nothing was notarized.
On their Power of Attorney forms, they had named each other and no one else. “We trust each other,” my friend said. But if the worst happened and they were both hospitalized there was no one else authorized to step in.
They had signed HIPAA release forms, but they hadn’t completed Advance Health Care Directives. That meant their adult sons wouldn’t be able to legally make medical decisions on their behalf if they couldn’t speak for themselves.
When I suggested they have experienced estate planning attorney, from my company review what they’d put together, my friend blew it off.
“I’m not worried,” he said. “My sons won’t fight over anything.”
But here’s the truth is, every one of those choices was a red flag. The kind that can lead to long, painful and expensive court proceedings for the family left behind.
Let’s look at what was really at risk:
❌ No Funding of the Trust
Without transferring their real estate into the trust, Jim’s house would be subject to probate the very process he thought he was avoiding. Trusts only work when they are properly funded. A beautifully written trust that holds nothing is legally meaningless.
❌ No Backup Agents
Naming only each other as agents on Power of Attorney and healthcare forms left a huge gap. If both were incapacitated, no one would have the authority to manage their finances, pay bills, or make medical decisions. The family would have no choice but to go to court and request a Conservatorship a stressful, public, and expensive process.
❌ No Advance Health Care Directive
HIPAA forms alone only allow someone to access medical records. Without an Advance Directive, no one would have the legal authority to remove life support or honor the couple’s end-of-life care wishes.
❌ No Clarity on Final Documents
When people revise their estate plans online but don’t clearly revoke or replace older versions, multiple documents may exist. In this case, if an older version of the trust surfaced, and no one knew which one was valid, his sons could end up in court litigating the estate, just to find out what their parents truly intended.
My friend saved a few dollars up front. Now, he has to pay for deed work, recording fees and notary fees. Unless his family fixes the mistakes now, his sons will likely spend more time and money cleaning it up later in court costs, legal fees, and emotional stress. Our living trust portfolio is less than you think. Get a free consultation and quote.
Most people don’t know how to properly word and fund their online trust and their online trust would not be valid.
What’s the Lesson?
Estate planning is not a do-it-yourself project.
Websites may be convenient, but they can’t:
- Fund your trust properly
- Ensure your legal documents meet your state’s laws
- Guide your decision-making based on your real-life situation
- Catch contradictions or legal gaps
- Protect your family when you're no longer here to explain your wishes
At AmeriEstate, we don’t just give you documents we give you a complete comprehensive estate plan that works when your family needs it most.
If you want to be sure your children are protected, that your home avoids probate, and that your wishes are honored during your lifetime and after, now is the time to get it done right.
Schedule your free consultation today and get the expert guidance you need to create a living trust that works for your family.
