My husband and I want to have a will but it seems attorneys are charging a lot of money for this service. Can you suggest any other avenues to create a will? I know there are online tools like legal zoom but it seems so confusing. -Kristen
If you have been following the recent news over federal tax policy at all, you will know that one of the most hotly-debated proposals was the reviving of the estate tax (which was non-existent in 2010). This debate underscores the importance of having proper estate planning to ensure that one’s assets be distributed according to their wishes at death.
One of the most critical aspects of estate planning is having a properly executed will. Whether you have a sizable estate built after years of hard work or are just getting started and want to make sure your young children are cared for, you need a will.
Now bear in mind that a will will not save you in the event the constantly-changing death tax comes back, but it will ensure that you, and not the State, dictate what happens to those you love and care about.
As you would expect, I recommend that you visit with an attorney in your state about your individual needs and desires. There is no one-size-fits-all approach and each state has their own requirements for creating a will.
For instance, some states allow you to write out a will by hand and have it notarized, others do not. Some require you need to have a two witnesses and a self-attestation clause, again others do not. This is why it is imperative that you seek professional advice from someone knowledgeable for your state’s laws on Wills and Estates.
One of the main reasons my wife and I seek to encourage people to get out of debt and get their financial lives in order is so that they can get in the position to personally grow, succeed, give and provide a solid foundation for generations to come. A will or proper estate plan is a cornerstone of that foundation.
Jesse Paine is a licensed attorney who owns his own law firm. He’s married to Crystal and is the numbers nerd of the MoneySavingMom.com team! If you have a question you’d like him to answer in a future column, you can submit it here.
The content of this column intended for informational use only and is not to be construed as providing legal, investing, accounting, or other professional advice. Your situation is factually specific and you should accordingly seek qualified professional counsel concerning your specific legal, investing or accounting needs.
We don’t have will and it is something that concerns me every day. The only thing I’m worried about is making sure that we choose our two toddlers’ guardians so that the state doesn’t do it. Other than that, we do not have much to make a will about.
We just bought a small townhouse and have a mortgage on it, so we couldn’t leave it to them anyway, I think. Everything in our house is secondhand, we have no valuable furniture or appliances or anything. Probably the most valuable item we have is a laptop.
The only things I’m particular about passing on are family keepsakes like certain dishes, books, etc.
Do we need to pay for professional services for something so basic as guardians and keepsakes? Is a will making software good enough for that?
I think sticking to the original advice is important. Every state is DIFFERENT. We have lived in 3 states and each time we have moved, we have had to re-address the will. Bottom line is that it is money well spent if after you die, your loved ones get what you left them and not the state!
You really need to put your assets into a Living Trust to keep them from getting tied up in probate.
One option people may want to consider is having a “will party.” I had read about it in my local paper – Minneapolis Star Tribune (the artcile is over 3 years old, so I can no longer access the link), but what basically happens is you get a group together, serve snacks, and have a lawyer come and he/she walks through the steps of creating a will and all the documents needed. They idea behind it is that people often make time to go to Tupperware parties, jewelry parties, and the such, but don’t seem to make the time to get wills created. By getting a group together and having two meetings with the attorney, he or she can pass the cost savings on to us. Then we all meet together at a later date to sign and get our documents notarized. Prices were based on how many couples attended and everything was kept confidential in the sense of assets people had and the such. Documents included: wills, powers of attorney, health care directives, trusts, executors of estate, etc.
I agree that wills can be complicated and intricate documents. But they don’t have to be. If you don’t have a lot of assets or special requests (and especially if you’re reasonably young and healthy), I don’t see the point in a really complicated will or even necessarily retaining legal counsel.
Of course, as we get older and have more of an “estate” we’ll likely redo it with the help of an attorney. But we’d be redoing it by then anyway, so it’s not like a will we do now needs to last us a lifetime.
My husband and I bought Quicken Willmaker for around $40.(http://www.nolo.com/products/quicken-willmaker-plus-WQP.html). It has a series of questions you answer and then it fills in forms – sort of like tax return software. Willmaker is updated annually to include legal requirements for all the states, so our forms were based on our state’s (Minnesota’s) current standards. It included options for a number of legal forms: we used the will, power of attorney, and health care directive. We got them witnessed and notarized for free at our bank.
This certainly isn’t the answer for everyone, but it works for us.
I’m a licensed attorney and I can’t emphasize enough how important it is to see an experienced estate planning attorney. You can save money with an online will and that could work out. But if your family has a legal problem with the will later, it could cost so much more. Both emotionally and financially. Why take a chance that will happen when it is avoided with the advice of an attorney? The attorney should be aware of your finances, family situation, any expected changes. The attorney can help you decide what is right for your situation, whether it is a will or a trust or both. They will also help you prepare legally for the unexpected as well as consider how federal and state inheritance, estate, death and/or income taxes will impact your family. I truly believe that the experience and counsel of a local estate planning attorney is worth the money!
Virtual law firms are beginning to pop up throughout several U.S. States. I am a stay-at-home mom/attorney, and I operate one for residents of Pennsylvania. They offer a secure website, which clearly states prices prior to your purchase. A virtual law firm is often less confusing than a legal forms provider, such as Legal Zoom, because you receive individual advice from an actual licensed attorney, just like you would if you visited a law firm. Virtual law firms can be great solutions for parents who are seeking convenience, great value, and excellent individualized legal advice.
Some ministries, like Moody Bible Institute, offer free wills for their constituents (or at least they did a couple years ago). A rep came to our house, walked us through the paperwork in advance and returned a few weeks later with wills for us to sign (and have witnessed). We named Moody as a beneficiary in our will, but I don’t think this is a requirement for them to help you with your estate planning needs. Call 1-800-DLMOODY to find out more.
It might be worth checking with your local law school (if you live near one) to see if they have a program where their law students do legal work under the supervision of their professors for free or a minimal fee. Most professors are talented in their field so you should be getting quality work. That said, you get what you pay for and it is very worth it to make sure your estate plan is done right.
Another thing to do in addition to your estate planning documents is what my financial planner dad calls “The Last Love Letter”. Every year sit down on your anniversary and write a letter to your spouse and children as if you had died the day before. Tell them everything you would want them to know. Seal up the letter and lock it away in a safe place to be given to your family upon your death. My dad has done this for 30 plus years and has a stack of letters locked up for my mom and us kids when he dies. It is amazing to think of the time and effort he has put into leaving this legacy for us.
We have wills. One for each of us. They were written up by an attorney and get re-written and changed each time we have a new baby or a substantial change in our circumstances. Is it expensive? Yes, changes are about $300-500. But, it is totally worth it. Our attorney suggested things that we had never even considered, and were very important. Could we have bought a do it yourself will kit? Yes. But then we wouldn’t have gotten the legal advise.
Trusts are great. My grandparents had one. That being said they are not the be all and end all. And probate is not always a bad thing. When my parents died, they left a lot of bills (both had cancer and no medical insurance). Probate was a wonderful thing, it put an end to creditor claims and allowed us to just finalize their financial lives after they completed their physical lives. So I guess my point is that probate is not a bad thing and that trusts are not always the best solution in every situation.
I think there is a time for saving money by doing things yourself and a time when it truly is in your best intereste to utilize a professional, and ensure your wishes for those you love. Budget if you must, but I would never dream of making my will a DIY project.
I live in Wisconsin and have beneficiaries recorded for all of my assets, my checking and savings accounts, brokerage accounts, life insurance policy, but, I am wondering if there is a way to place a beneficiary on my truck. I’ve yet to discover a way but, I would like to for my truck is worth in excess of $26,000.00 and that is substantial to me. I did name a person specific in my will to inherit all of my personal property and I know it will include my truck. I’d just like to make it a little more concrete if possible.
I do have a question for Jesse. What happens when a person is named to inherit a piece of property and there is a loan out, i.e. an auto loan or a home? Thanks!
I second this as a question for Jesse to answer, if he can!
Don’t forget to check into your Employee Assistance Program if your or your spouse’s work offers one. We were able to enroll in a legal assistance program for $8/paycheck that included our will and allowed us to take care of a few other small matters without any other out-of-pocket cost.
We were able to buy and use the Quicken Family Lawyer. It comes with a basic will program, health care power of attorney, living will, and several other things we didn’t need/want. It’s all “fill in the blank” and then you can modify the legal text if you want/need. We have a very simple life (no business, no investments besides our home). We just want to make sure our assets were given to the right people and that our children are taken care of by the people WE choose. We filled them out all (took like an hour), printed them out, and had them notarized so we are good to go. Cost us less than $100 for all of it. Well worth the money for the peace of mind. And we go back and easily modify or update them whenever we want and just have them notarized again.
Any suggestions for approaching my Grandma who says she has a will, but no one knows where it is or who the lawyer may be. I am executor of the estate, but she never wants to talk about it and I only see her about twice a year as we live 4 hours away.. She has a large estate and I now that there will be people that she has hurt and will possible make trouble at her passing.
As here grand child she has put me into a situation as she refuses to let her only surviving child do the job already. She is 95 and very independant so this is a really hair puller. Then again we say she will out live us all anyway.
I work for a financial planning firm. We see the good and the very ugly when it comes to families settling estates. I think lots of parents/grandparents miss an opportunity when they fail to sit down with their family and share their wishes. I think most children want to cooperate with their parent’s wishes, but just don’t know what they are. We highly recommend that our clients start brining in whomever they have named as their personal representative to meet their financial advisor, attorney, etc and talk about the plans they have in place so that things go smoothly when there is a medical crisis or death. I hope your grandma will appreciate where you are coming from in trying to do your best to avoid a family mess and honor her wishes. Keep asking her to introduce you to her advisors and let you have copies of her estate planning documents. Assure her that you will keep her information confidential. Worst case, you can always bow out of the job of executor upon her death.
My husband and I used US Legal Forms (endorsed by Dave Ramsey), too. It was much, much cheaper than using an attorney, and it is specific to our state. We can get it notarized for free at our bank, and it’s saved us a lot of money over going through our attorney, whose secretary would have just entered the same information into a form, anyway. If we had had some strange circumstances or something complicated, it would be different, but this has worked well for setting everything up so that our daughter would be taken care of should anything happen.
I cannot encourage people enough to have a will and keep it current. My dad passed away last year and the only will he had was 25 years old. It was written when all of his children were in high school or college and he was newly remarried. Even though there was not any real assets to distribute, you cannot believe the division and mistrust that is now in my family because there was not a current will.
The second thing that I think everyone needs is life insurance, no matter the cost, because we never know when we will no longer be here to provide for our family.
There are alot of crazy emotions that happen when a loved one dies, things are said and done that would never normally happen. So, if you can make it easier on your family by having a will and life insurance, you should. No matter the cost.
You can’t use online and do it yourself kits in some states.
As a licensed attorney, I cannot agree more that it’s important to talk to a local attorney. You never want your family (and children) to pay the price of an inadequately drafted will or power of attorney. If anyone needs a recommendation for a good attorney in the Chicagoland area, email me at [email protected]. I do not practice in this area, but I have a friend that does a fantastic job at a reasonable price. (I’ve used him for our will.)
What if you’re living in an area that you don’t intend to stay in permanently? We plan to move back to our home state hopefully within the next 5-7 years and stay there for life. What would your best advice be?
You still want to get a will now. What if you or your spouse die before you move back? No will means the state decides who gets your assets (however, usually it is the spouse). If you both pass before you move back, the state decides who gets custody of your kids. Get a will now and update it when you move to comply with your home state.
From what I understand, if the will is properly executed in the state where you currently live, it will be enforced no matter where you go. So, in other words, as long as it is correctly done, it will be enforced, and you would not need to change it based on a move. So, you can go ahead and get it done now.
2 things you should never skimp on in life in order to protect your children, a will and life insurance!
What about the on-line will kits? Dave Ramsey suggests US Legal forms. These are state specific, and the cost is pretty good. We just need a simple will, designating who will have custustidy of the kids and they get all the money too.
Although you may think you need a simple will now, things do change. A good attorney can make sure some of those future issues are included/addressed such as future children. Also, minors cannot inherit money directly in some states. So a financial guardian is needed for their money and it is usually someone other than the person(s) who have custody of the kids (keeps everyone honest). My hubby is an attorney who does wills and probate. Lots of people fear probate court but it is there to protect the heirs and the creditors. Also when my father passed away many years ago, he left no will. What a mess especially since he had remarried three years before his death. My brother and I had no “rights” to any of his personal possessions (nor any financial assets)….we only received what his wife didn’t want regardless of what sentimental or family connection we had with it. Nor did we have any say in his final resting place (not with his family but next to HER first husband!). So from personal experience and osmosis from my hubby, get a qualified attorney in your area. Ask friends for recommendations and the local bar association can give you referrals to a lawyer who practices in the area of wills and probate.
Do you have any recommendations in how to find a good, honest attorney in our area? We would love to hire you… but we are in MD…. 😉
Ask friends for recommendations. Don’t be afraid to look at small (1 person) firms. And the local bar association can give you referrals to attorneys that practice in the area you are interested in (wills, criminal, tax,….)
Where are you in MD? I know a good law office in Lutherville (near Baltimore) that specializes in estate planning and elder law. They helped me take care of my father’s estate and also did my will.
Kimberly – I’m a paralegal for my father’s law firm (he has a master’s in taxation). We specialize in estate planning – wills, revocable living trusts, ILITs, powers of attorney, living wills, designation of health care agents and HIPAA releases. I’d be happy to put some information in the mail to you. Our main office is located in Columbia, MD, but we have two satellite offices in Leonardtown, MD and Camp Springs, MD.
Sorry, forgot to leave my email address. [email protected].
Hi Marney and Jodi!
Thank you for your responses! We are closer to Columbia, but are willing to travel… I am looking for a like-minded Christian attorney… I wonder how important that is…?
Thanks!
my husband and i had our wills, living wills, and durable power of attorney documents completed last month for $150 per person, $300 total. i thought this was a great deal!
My husband and I received our will, living will and POA as a wedding present from a friend. She set up a paid appointment with a firm and then we were able to coordinate the meetings.
For us, this was the BEST gift we received. It was only about $300, but helped secure our future and we have been able to update it as our family situation changed over the years.
Not the typical wedding present, but one I would highly recommend!
What a fantastic idea!
How much does a will cost?
Remember that if you or your spouse is in the military to get it done for free @ the legal office. If you deploy you have to anyway, but remember to get it updated. Retirees can use the service too. Remember that, when you move, your will will be executed under the laws of the state that it was drawn up in.
My husband and I got involved in Pre-paid Legal last year. I have a friend and neighbor who sells it, and we signed up. For $35/month, I get access to a lawyer anytime I need for any questions I might have. They’ll write letters for me and make phone calls on my behalf. The plan comes with free will planning. It’s usually $25/month, but we pay the extra $10 for identity theft protection. The service has actually come in pretty handy on several occasions where I needed legal advice (particularly as regards my grandmother’s estate, of which I am executor. We had some trouble with the insurance company a few months back.)
They also have a plan where you can sell the insurance for profit. We don’t sell. But I know a few people who do. You’re not gonna make a living off of it, but they use it to subsidize their income to afford those little extras in life, like new bikes for their kids last Christmas.
My parents had prepaid legal since I was a teenager! I now have it for my family! The piece of mind it brings to me and my husband knowing that we have an attorney to talk with about anything. At 30 years old I would not have a will, but with prepaid it was one of the first things we did!
For active duty military, this (wills/medical directives/etc.) is a FREE service at your base legal office! Also, we recently read a book by Ron Blue called Generous Living which addresses the issue of what to leave upon death- a bit of a different perspective than is commonly presented.
if you don’t have a lot of details to cover and limited funds, a lawyer could do it for around $200 in many places.
If you have lots of assets and special details, spend the money on a good will. It will save money and heartache in the end.
The article is a bit misleading about the estate tax. Though is surely is a constantly moving target, the estate tax was, in reality, a defacto option for 2010 — no estate tax resulted in some pretty harsh accounting for cost-basis that could bring about steep capital gains taxes, therefore estates have option of no estate tax or the use of 2011 tax rules.
This year, estates valued at $5 million or less are exempt from the tax. Estates worth more than $5 million are taxed at a 35 percent rate.
It is nearly impossible to guess what will happen in the future but the estate tax threshold may well be lowered to $1 million and the rate increased to 55 percent for estates valued at more.
The estate tax is a moving target. As you stated, it seems to be a favorite football to play with whatever the party in power. With the changing landscape, someone who created an estate plan when the exemption was at $1 million would approach it differently when it was eliminated and again when it was set at $5 million. This is exactly why one need to get an estate plan done by a qualified estate planning attorney and not a run-of-the-mill online service. One’s needs are always changing and the plan needs to be revisited and revised periodically with the changes in the law that seem to be constantly made.
Great article, but I think the use of the term “death tax” is misleading and unfortunate.
I second that, Meghan.
You should know that even a properly executed will still goes through probate court. A family trust is an easy way to stay out of court. We had our trust drawn up (before we even had anything to put in it!) by an estate planning ministry. They did it for free. We were simply asked to include our church in our estate plan (nothing big — we just left a tithe to the church). The ministry has even made amendments for us for free as our life situation has changed.
I would be very cautious of anyone that required anything of me in order to create my will. You should not be required to include anyone or anything in your will as a precondition of having your will drawn.
I attended a seminar by a member of our church and the attorney who presented suggested beneficiaries be designated with life insurance policies, bank accounts, brokerage accounts, as well as in a will. The attorney stated a judge would almost never make a change in probate should it be clear in both places.
I live in Wisconsin and I just did a will with a trust and it cost $275.00.
This is true unless someone contests the will. A trust is much safer. Also, anything passed on in a will is subject to tax. Nothing is subject to taxes in a trust (because no on is inheriting anything).
The ministry we used is just that — a ministry. We love our church and were more than happy to leave something small to them.
I have a law degree and it was all legitimate.
Was that through a lawyer’s office?