A Definitive Guide to the Cost of Writing a Will
Some estimates say that as many as 60% of Americans don’t have a will. Without a will, you’re essentially turning over how your estate and assets are distributed to the state government, as opposed to a trusted advisor or member of your family.
Many people don’t have a will because they think that they don’t have assets or they can’t afford to write a will. The cost of writing a will isn’t as much as you think. It could cost you much more not to have a will.
Keep reading to learn how much it costs to write a will and how to make sure your estate is protected.
The Cost of Writing a Will
Let’s get right to it. The cost of a will depends on a number of things. Where you live, the number of assets to be distributed, and if you decide to hire an attorney or write the will yourself are the main factors.
You could write the will yourself using specialized programs for less than $100. If you have a fairly straightforward estate plan, then a will written by an attorney can cost between $100-$250.
On the other hand, if you have a business or a wealth of assets, a will could cost more than $1000. Some of the most complex wills written by a highly experienced estate planning attorney can cost as much as $5000.
Hire a Lawyer vs. DIY
One decision you should make is whether or not you write the will yourself or hire an attorney to write it for you. The advantage of having an attorney is that they will think about all aspects of your estate. They may have ideas or suggestions that will help you avoid more taxes.
They will also make sure that your will holds up in court in case anyone contests the validity of the will.
Another way to have a will is to grab a notebook and write the will yourself. You need to be aware that in many states, this isn’t legally recognized.
There are online services and software you can purchase that will let you write your will yourself. You enter your basic information and answer a series of questions. The software or service will produce the final version of your will based on your answers.
One of the best ways to ensure that you have an error-free will that’s cost-effective is to write it using software and have an attorney review it. The attorney will recommend changes to improve the will.
Components of a Will
If you plan to write the will yourself, then you’ll need to know what should be in it. There are basic components of a will that need to be included no matter how simple your will is.
The first part is the introduction of the will. You need to say who you are, where you live (city, county, state), and that this document is to serve as your last will and testament. You’ll also include your complete martial history and list your children. Don’t forget to include any divorces in your marital history.
That will be followed by a list of your debts. You’ll direct which assets will pay for your debts and how any outstanding taxes will be handled.
The most important part will list your assets. This is a list of everything you own, including your home, bank accounts, and personal belongings, and how they will be distributed. For each asset, you’ll assign one or more beneficiaries.
If you have minor children, you need to assign a guardian. This could be your spouse, ex-spouse, or another family member. If you don’t have a guardian listed, the state will assign one for you.
You will also designate someone to be the executor of the will. This person is responsible for dividing your assets and making sure that your beneficiaries receive them as you intended.
There are some provisions in your will, such as a no-contest provision that will need to be included as well. This is legal language that is meant to protect you and your assets.
Other Parts of Estate Planning
A last will and testament is only part of your estate plan. A will is a set of instructions that outlines what you want to happen with your estate after you die.
You should consider the other parts of an estate plan to preserve your wealth and to provide legal guidance in case you are incapacitated.
Your estate plan should include a power of attorney directive in case that does happen. Power of attorney allows someone to mange your financial situation. In many cases, that will be a spouse or an adult child.
However, for a single person, that can be a big gray area. Without a power of attorney directive, then the state would decide who your guardian is.
You should also leave a health care directive in your estate plan. You’ll need to have a document that outlines what should happen to you if you become incapacitated. That document is called a living will.
Another document called a health care proxy gives a person responsibility over your health care decisions. This will alleviate tension within your family because the responsibility is given to one person.
You may also need to establish a trust for your assets. There are revocable and irrevocable trusts. There are advantages and disadvantages of each, and you need to consult with an estate attorney to determine the best option for you.
A will and all of these assets are important in having a solid estate plan for your family. This article shows you what can happen if you don’t have a complete estate plan.
Have a Will and a Complete Estate Plan for Security
No one wants the government to decide what should happen to their hard-earned assets after they pass away. That’s exactly what will happen if you don’t have a will or an estate plan.
What’s the cost of writing a will? It can range from $100 for a simple will to as much as $5000 to settle a complex distribution of assets. You shouldn’t let the cost of a will get in the way of having one.
Do you want more legal tips? Read this article to learn why you should hire a medical malpractice attorney.
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