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BY BERNARD A. KROOKS, CERTIFIED ELDER LAW ATTORNEY

SPECIAL GUEST CONTRIBUTOR: AMY C. O’HARA, CERTIFIED ELDER LAW ATTORNEY

Artificial intelligence (AI) has quickly become a popular tool for answering questions about everything from travel planning to home repairs. It is not surprising that many people are now turning to AI platforms for guidance on wills, trusts, powers of attorney, and other estate planning matters. While AI can be a useful starting point for learning basic concepts, relying on it for estate planning advice can create significant and costly mistakes.

Estate planning is not simply about filling out forms. It involves understanding complex legal rules, family dynamics, tax considerations, and state-specific laws. An AI program cannot fully evaluate a person’s unique circumstances, and even when it provides information that sounds authoritative, that information may be incomplete, outdated, or simply wrong.

One common problem is that AI often provides generalized answers that do not account for state law. Estate planning laws vary considerably from one state to another. For example, the requirements for executing a valid will differ across jurisdictions. Some states require witnesses, some recognize handwritten wills under certain circumstances, and others do not. An individual who follows AI-generated instructions based on another state’s laws may end up with documents that are invalid or vulnerable to challenge.

Consider the case of a widow who asks an AI program whether she can simply add her daughter as a joint owner on all of her accounts to avoid probate. The AI may explain that joint ownership can transfer assets automatically upon death. While technically true, the answer may overlook important consequences. Adding a child as a joint owner can expose assets to that child’s creditors, divorce proceedings, or cause unintended tax consequence. It may also create family disputes if other children were intended to share equally in the estate. A qualified estate planning attorney would identify these risks and explore alternatives.

Another danger is the false sense of certainty that AI can create. Many AI responses are written in a confident tone, even when the information is inaccurate. Estate planning often involves exceptions, special rules, and fact-specific analysis. For example, a parent of a child with disabilities may ask AI whether leaving assets directly to the child is appropriate. An AI system may suggest a simple bequest in a will. However, such a gift could jeopardize the child’s eligibility for important government benefits such as Supplemental Security Income (SSI) or Medicaid. In many situations, a properly drafted supplemental needs trust may be necessary to preserve those benefits. A seemingly small mistake could have devastating financial consequences.

Tax issues present another area of concern. While federal estate tax exemptions currently protect most families from federal estate tax liability, many people assume that means taxes are irrelevant. AI-generated advice may fail to address state estate taxes, inheritance taxes, income tax consequences, capital gains issues, or generation-skipping transfer tax concerns. A poorly planned transfer could result in unnecessary taxes that significantly reduce what beneficiaries ultimately receive.

AI also struggles to evaluate family dynamics and personal goals. Estate planning is not merely a legal exercise; it is a process of understanding what matters most to an individual and their family. For example, a blended family may require careful planning to balance the interests of a surviving spouse and children from a prior marriage. An AI tool may suggest a simple will that leaves everything to the spouse, without recognizing the risk that the children could ultimately be disinherited. Human judgment and thoughtful counseling are often essential to achieving a client’s objectives.

Errors in beneficiary designations provide another example. Many assets, including retirement accounts and life insurance policies, pass according to beneficiary designations rather than a will. Someone relying on AI may spend considerable time drafting documents while overlooking outdated beneficiary forms. As a result, assets could pass to an ex-spouse, deceased beneficiary, or unintended recipient. An experienced estate planning attorney typically reviews the entire estate plan to identify these issues.

Privacy is another consideration. Many people share sensitive personal and financial information when seeking estate planning guidance. Depending on the platform being used, that information may not be protected by attorney-client privilege. Conversations with AI systems do not receive the same legal confidentiality protections that apply when communicating with an attorney.

None of this means AI has no place in estate planning. It can be a useful educational tool for learning terminology, understanding general concepts, and preparing questions to discuss with an attorney. However, it should not be viewed as a substitute for individualized legal advice.

Estate planning decisions can affect a family for generations. A document that appears correct on its face may contain flaws that are not discovered until after a person’s death or incapacity, when it is too late to make corrections. The cost of fixing those mistakes often far exceeds the cost of obtaining professional guidance in the first place.

When it comes to protecting your loved ones, preserving your assets, and ensuring your wishes are carried out, AI can help you become informed. It should not be the final authority. Estate planning remains an area where personalized legal advice, professional judgment, and careful attention to individual circumstances are indispensable.

Bernard A. Krooks, Esq., is a founding partner of Littman Krooks LLP. He was named 2021 “Lawyer of the Year” by Best Lawyers in America® for excellence in Elder Law and has been honored as one of the “Best Lawyers” in America since 2008. He was elected to the Estate Planning Hall of Fame by the National Association of Estate Planners & Councils (NAEPC). Krooks is past Chair of the Elder Law Committee of the American College of Trust and Estate Counsel (ACTEC). Krooks may be reached at (914-684-2100) or by visiting the firm’s website at www.littmankrooks.com.