Writing down how to divide your assets is an essential start to estate planning that can be easily overlooked. Among Americans, only 32% have an estate plan, according to a 2024 survey by Caring.com.
“Whether you are young or old, rich or poor, everyone can benefit from having a last will and testament,” said John P. Farrell, an estate planning and probate lawyer at Farrell Law Firm in Marietta, Georgia, in an email. If you have a document in place, you’ll reduce the risk of family disputes and potentially high legal fees.
Plenty of online tools allow you to create a will efficiently. A quick search will lead to various websites that can help you draft a will in under an hour. But before clicking through, it’s important to evaluate your options.
Follow these guidelines to decide if an online will is the best fit for you:
— Know your options for a will.
— Check the laws for wills in your region.
— Consider your estate.
— Compare the costs of a will.
— Tell your heirs how to find the will.
Know Your Options
There are essentially three ways to write a will. “You can prepare it yourself, use a do-it-yourself service or seek the assistance of an estate planner,” Farrell said. If you draft a will on your own, you’ll want to make sure you have a solid grasp of your assets and can share detailed instructions regarding beneficiaries. Some retailers offer a will kit to guide you through the steps.
If you use an online service to write a will, you’ll have access to software. However, it may lack certain aspects you might want, including the chance for an in-depth discussion with a professional. Many online options allow you to make updates over time if your circumstances change.
Working with a professional to create a will can ensure you don’t overlook any crucial estate plan details. You can review your household members and personal preferences in a confidential setting.
[READ: Your Guide to Retirement Planning.]
Check the Laws for Wills in Your Region
Before grabbing a pen or looking for will-making services online, research the legal requirements in your area. Each state has its own laws regarding estate planning. In some states, your will can be handwritten, but others require a typewritten version to make it valid. Some states require just two witnesses, while others require a will to be witnessed, notarized and typewritten.
Consider Your Estate
Your assets and family situation are major considerations when drafting a will. “There are many people who have written their own wills and the estate has been fine,” Farrell said. “This type of estate planning, however, is usually suited for the most basic of estates, such as someone with a single piece of real estate and a small amount in investments.”
If you have a larger estate or heirs with certain medical conditions, you may benefit from the expertise of a professional. For example, if you have a child with special needs who receives government assistance and want to pass assets to them in a way that won’t cause their benefits to be reduced, a legal professional can help. If you have minor children, “then your will must contain a clause outlining who should care for your children if you die before they turn 18,” said Kelsey Simasko, an attorney at Simasko Law in Mount Clemens, Michigan, in an email.
You might also opt for an attorney to reduce your exposure to probate fees, which are generally charged when the will is reviewed to make sure it is valid. If you’re considering moving your assets into a revocable living trust to avoid probate fees, an estate planner could help you sort through the associated costs and benefits.
[Read: How to Manage an Inherited IRA.]
Compare the Costs of a Will
A handwritten or typed will can be created at no cost. Many online services set a price at less than $300 to create a will. “Most estate planners charge more than your average do-it-yourself service,” Farrell said. For help with a will, an attorney might charge $500 or more, depending on where you live and what you need.
If you write a will on your own, be specific when relating your wishes. “The costs may be on the back end if the process of probating your will becomes complicated because your will isn’t clear about where everything should go,” Farrell said.
If you have a complex situation, you may ultimately pay less by using an attorney. “Part of the benefit of working with an attorney is that most attorneys have helped hundreds, sometimes thousands, of families work through decisions,” said Steven M. Zelinger, an estate planning attorney in Philadelphia, in an email. A professional can offer insight into setting up guardians for minor children or appointing an individual to be in charge of the estate distribution. “There are often tax considerations the average person would not know about,” Zelinger said.
[READ: What Is the Inherited IRA 10-Year Rule?]
Tell Your Heirs How to Find the Will
Regardless of the way you draft a will, keep the final version in a safe spot and let others know about it. If you move the document, you’ll also want to update family members. That way, everyone will have peace of mind regarding its location, and your loved ones will appreciate your efforts to stay organized.
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Should You Make a Free Will Online? originally appeared on usnews.com
Update 10/24/24: This story was previously published at an earlier date and has been updated with new information.
