AI Estate Planning Could Be a Costly Mistake

I recently overheard someone say “AI is free” to an individual requesting an estate planning attorney recommendation (in a non-professional environment). I exercised enough self-restraint to not insert myself into the stranger’s conversation; however, I’ve worried about whether someone may take the advice.

Let’s use an individual named Carl for example purposes. Carl decided to use AI to draft his estate plan. How or when would Carl find out it is inadequate? I imagine if Carl is using AI because it is free, it is unlikely he will pay an attorney to review the documentation prepared. I will also note, it is likely to cost more to have an attorney review [and address necessary changes in] AI-drafted documents than it would’ve cost to use an attorney draft the documents in the first place.

AI-generated documents may look official at first glance, but we all know looks can be deceiving. Will Carl review the documents and cross-reference state laws to see if his documents meet the legal requirements of his state? Is Carl confident in his interpretation of the legal requirements? If Carl chooses to not have an attorney review his estate plan, any issues within the documents will not come to light until Carl’s death. If the documents do not meet the state’s requirements or there’s inconsistent language leading to ambiguities or misunderstandings amongst beneficiaries – the administrator will most likely need to hire an attorney and initiate probate proceedings to resolve any issues. Hiring an attorney to represent the estate or beneficiaries throughout the probate process will likely end up costing significantly more than what Carl would’ve paid an estate planning attorney to draft a structurally and legally sound estate plan.

Additionally, AI does not necessarily understand the complexity and nuance of tax planning, business succession, or family dynamics. Some estate planning situations may be straightforward, while others may require in-depth strategizing with other advisors or discussing situations specific to certain beneficiaries. It is helpful to discuss options and talk through how various provisions will play out with experienced advisors – this isn’t something you can do with AI.

If Carl had given his estate plan the appropriate time and consideration initially, it would have saved his loved ones (and his estate), a lot of time, money, and unnecessary frustration. Don’t leave your family in a stressful situation, like Carl. While AI may be free and fast, your estate plan is not an area to go with the free option. Estate planning attorneys are increasingly using flat rates for estate plans and can let you know how much it will cost to draft the specific documents needed for your situation during a consultation.

While there may not be many AI-drafted estate plan cases which have been litigated or published yet, there have been situations where unverified AI drafting has caused issues in the courtroom, including made up case law citations in legal briefs and using outdated laws. If you’re going to use AI, use it for simple tasks to make your day-to-day life easier, don’t use it for important matters such as drafting legal documentation.

If you are in need of an estate planning attorney, your client centric team would be happy to provide professional partner referrals for estate planning attorneys in your area. While some of us are licensed attorneys, we are not practicing, and we do not draft legal documents. We work closely with clients and their advisors to ensure estate planning documents achieve their goals. But please do not ask us to review your AI drafted estate planning documents – we will recommend you speak to an attorney!

Why is using artificial intelligence to draft an estate plan a costly mistake?

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While AI offers convenience and low upfront costs, it lacks the ability to navigate state-specific laws, tax nuances and family dynamics. Using it can result in invalid documents, ambiguities and legal errors that won't surface until your passing, triggering expensive and stressful court proceedings for your heirs.

What happens if my estate planning documents don't meet state legal requirements?

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If your documents contain inconsistent language or fail to meet your state's strict legal criteria, your estate will likely be forced into probate court. Resolving these ambiguities requires hiring estate litigation attorneys, ultimately costing your loved ones far more time and money than hiring a proper attorney initially.

Can Greenleaf Trust review or fix an AI-drafted estate plan for me?

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While members of our team are licensed attorneys, we do not practice law or draft legal documents. We cannot review or validate AI-drafted plans. Instead, we strongly recommend consulting a practicing estate planning attorney, which is much more cost-effective than trying to repair automated text.