Online will-writing tools are all the rage right now. On the heels of the outbreak of the COVID-19 pandemic, we’ve seen a spike in demand for estate planning services. With many estate attorneys booked for months, some have turned to the tools at their disposal, like online will-writing.

DIY wills are not new and there are lots of online will-writing tools available—including some geared specifically towards nonprofits. Often, our clients ask us whether various online will-writing platforms or vendors could or should be utilized in their programs. Some of the vendors for these services are quite aggressive in marketing their products, and our clients want assistance in evaluating the legitimacy of the claims being made or understanding the pros and cons.

There are many considerations to balance when evaluating the utility and value of partnering with an online will-writing program vendor. Some of our clients utilize these programs while others would never consider them. The most important thing we want for our clients is to carefully determine if, when, and how to best offer these resources, and understand where they might fit in their overall planned giving marketing program.

Raising legacy gifts – gifts that are completed, finalized, and ultimately distributed to charity – takes work, intention, strategy, investment, and long-term relationship building. What may seem a quick fix or “easy money” is generally not. It’s good to remember that a gift doesn’t really count until you receive it. And it’s been estimated that up to 40% of bequest intentions are never realized

I thought it would be helpful to answer some of the most common questions we are asked:

1. What is the appeal?

For individuals with simple planning needs, it’s easy, private, and inexpensive. For organizations that partner with these companies, it can seem like an easy and simple way to expand their planned giving pipeline, particularly when the organization doesn’t have dedicated planned giving staff or an effective planned giving marketing program.

 

2. Are these programs legal? Are they ethical?

They do seem to be legal, but there are risks. Some respected leaders in the planned giving community don’t have a problem with these products; others feel strongly that charities should not partner with will-writing companies for the following reasons:

  • Significant liability concerns if a plan is inappropriate or damaging to the donors and/or their heirs.
  • Ethical problems with charity involvement in writing a donor’s will.
  • Risk of undue influence and unauthorized practice of law.
  • Risk of will contests.
  • Wills that are inappropriate for the donor’s particular situation, that may never be properly executed, and that may not actually reflect the donor’s wishes.

We offer no opinion on this, but it’s vital that you conduct your due diligence with your counsel before making any decisions on what your organization should do. If you don’t have or cannot afford good counsel, think twice before engaging an online will-writing vendor.

 

3. Are they appropriate tools for my donors?

Yes, for some it’s a great option. For example, donors with relatively simple finances and family structures; those whose primary impediment to planning is the logistics of just getting it done; and donors who would rather create their own plans rather than pay an attorney to do so.

But will-writing programs are not one-size-fits-all. Consider who your donors are. There are many circumstances where a lack of good counsel can cause far-reaching problems for donors and their families. For example, our biggest concern is for families with loved ones with special needs, where specialized advice is absolutely critical. Without expert guidance, a badly written estate plan can be financially devastating to the special needs family member, rendering them ineligible for most government support. Business owners, donors with blended families, couples who are not legally married, people who own property in multiple states…. All may have more complicated planning needs.

An experienced attorney can assist: They will help their clients work through tricky family situations, particularly when there are blended families; help with choosing executors and guardians for children; address business planning and succession issues; help create a family legacy of philanthropy, etc. They also ensure that documents are appropriately executed and witnessed.

If you do offer an online will-writing tool on your website, you may want to consider including warnings in your marketing that these tools should be avoided by people who are subject to these circumstances. You could do more harm than good—or put your organization in a difficult position—if the plan produced is ineffective, inadequate, or harmful, but offers the donor a false sense of security or satisfaction.

 

4. Is this an effective way to confirm new legacy gifts?

Perhaps, but not if it’s your only tool. If someone includes your organization in their will by using these products – or says they’ve included you – it doesn’t mean that your organization will ever receive a charitable estate gift. 

First, these donors might not actually share their intention with you, limiting your ability to steward them. Second, they may change their mind. Since these tools are relatively new to the market, we don’t yet know how many of these pledges or commitments are ever actually realized as revenue. Donors change their plans as their circumstances change or as their relationship with the organization changes. Third, there may ultimately be problems with administering these estates if the documents do not take into account various planning issues, or if they haven’t been executed properly. The reality is that nothing is certain until the money arrives.

 

5. Should a will-writing platform be my primary marketing tool?

Nope. While many donors may find that an online, DIY will is completely appropriate for their needs, many others will not. What else are you offering them in terms of support? Have you inspired them with the potential impact of their gift? A complimentary will-writing offer may be attractive to many, but no donor will put you in their will if they aren’t satisfied that your organization's mission reflects their values, or if they are uncertain about how your organization is delivering on the mission.

A balanced program addresses lead generation, ongoing cultivation over time, gift disclosure, and most importantly, stewardship. Look at your marketing balance – for some donors, an online will-writing program is great for getting past some of the logistical and financial barriers to planning. But it isn’t the tool for others. Do you have additional marketing outreach that addresses other planning needs and situations? What about stewardship touches?

Russell James has estimated that up to 40% of charitable estate gifts never materialize. Of course, sometimes there’s nothing we can do about that – the donor’s family or financial situation changes, or perhaps their philanthropic priorities change. But often, donors remove charitable gifts from their plans because they are not well-stewarded. And stewardship is often the most under-funded and under-emphasized part of a planned giving program – particularly stewardship that might need to last for decades.

When we create marketing strategies that focus on lead generation for planned gifts, we always look at the clients’ capacity to leverage these leads. Do they have the ability to follow up appropriately and to build relationships? Most organizations have more qualified planned giving leads than they can adequately handle and need to increase their staff capacity. Do they have resources for cultivation and stewardship campaigns? It’s easy to generate leads; it’s much harder and a much longer process for donors to work through their estate planning process and to retain legacy gifts over time.

The MWD legacy giving team is always available to walk through these considerations. We believe in the power of collaboration, and often partner with other agencies, consultants, and vendors who may contribute to effective planned giving marketing programs!

 

Tracy Malloy-Curtis, (she/her), JD, Legacy Giving Director, is a 20-year veteran in legacy giving and major gifts fundraising for advocacy and social justice organizations nationwide. She leads the legacy giving practice at MWD.