In the financial services world, a significant amount of paperwork requires signatures from clients. In my experience, most people are comfortable signing documents electronically; but some people still prefer signing with wet ink on paper documents, and it only makes sense that as time goes on, fewer and fewer people will be in this camp. We are living in a digital age, and every year, more of the population is buying in to online services as a viable option.
With the advancements of high-speed internet, Wi-Fi accessibility, smartphones, and cyber-security, services that used to require meeting face-to-face with a professional have become more available online. During the pandemic period of 2020 and 2021, an estimated 81% of Americans used video-call platforms to talk with family or co-workers (Zoom, Teams, FaceTime, etc.). Many people who said they would never do virtual meetings realized that it was a better experience than what they expected. This created an opportunity for the service industry to reach a larger audience – they could now offer their services to the online marketplace, rather than just the people who lived within 30 minutes of their office.
An industry that has seen significant growth in online services is estate planning. The majority of people still meet with an attorney face-to-face to create or update their estate documents, but a large percentage of people are choosing to use platforms like Legal Zoom, Trust and Will, or Wealth.com. These online platforms can generate state-specific documents while inputting the user’s personal information, and because you are not working directly with an attorney, the fees for these services are generally lower than what it would be to meet directly with an attorney. The platforms are not designed to provide legal advice; if a user has legal questions, the platforms will recommend a local attorney to contact.
The platforms are also able to create Trusts, but only under certain conditions. If your estate plan reaches a certain level of complexity, the platforms will recommend a local attorney to set up your Trust documents. Over time, the platforms will probably be able to provide more complex planning, but for now, the ideal client is someone with a simple estate plan who needs well-written documents.
Funding is the last step when creating an estate plan with a trust – this is the process of retitling personal assets to your trust. If you do not fund your trust, then it has no power over your estate. It is still best to seek the help of an attorney during the funding process because titles and deeds need to be filed with the county where your property is owned.
The online platforms for estate planning are substantially better now than ever before, but gaps still exist in their ability to help any person in any situation. My recommendation for anyone interested in using an online platform for estate planning is to have a fiduciary in your corner throughout the process.
Financial Enhancement Group is an SEC Registered Investment Advisor.
