My husband and I each bought life insurance policies several years before our son was born. We put them in a drawer and pretty much forgot about them ever since. The payments are automatically deducted from our bank account, and there isn’t really anything else to think about. And now that our son is almost 21 months old, we’ve finally gotten around to adding him as the contingent beneficiary on our policies. Yes, I know… 21 months. We are especially on top of things.
Anyway, now that we’ve checked that task off of the to-do list, we’re thinking that it’s high time we wrote wills and appointed a guardian for our son in case both of us were to die. We also need to set up a power of attorney, in case we were to be incapacitated. Not the most pleasant thing to ponder, but I know we should do it. A friend of mine is pregnant at the moment, and she and her husband are in the process of doing the same thing, before the baby is even born. Her super-responsible habits are inspiring me.
My husband and I are both close to our families, and there’s no drama or issues on either side. I know that we don’t have to worry about things like wills being contested or anything like that. But I suppose we should actually get it all down on paper, just to be sure. Our situation isn’t particularly complicated – we own a home, have IRAs and a few other savings accounts. But we also own our own business, which I guess could complicate things a bit.
I’m wondering if any of you have ever used will software? I know that we could get a lawyer to do it for us, but my frugal nature (combined with the fact that I am 100% sure that all of our family would support our wishes, even if they were written on a napkin) means that I’m looking into less expensive options too. Any thoughts are appreciated!
Jason @ MyMoneyMinute says
The funny thing about “simple wills”, is that they are rarely, well.. simple. Not only might your family situation change, but there are tons of family dynamics that may change between now and your untimely demise – adoptions, blended families, potential irresponsibilities of your heirs, etc. Also, a will-by-form will rarely provide detailed instructions about what to do with your estate.
It would be worth a few hundred bucks to hire an estate planning attorney to guide you through the process of when & how your estate is passed to your children. In a form-will, it would probably just distribute it outright at age 18 — I’m not sure I’d want my child to have a one-time windfall at any age! A decent attorney can guide you through what is best for your situation.
A form is better than nothing, but I would only consider it a stop-gap answer. For someone like you that’s on top of her money, it would definitely be worth the investment of a few hundred bucks to get good advice.
Jane says
I am glad you wrote about this because I have been thinking the same thoughts. Recently I heard about legal zoom, a website that does that kind of thing for less than $100. But on the other hand, I also read parts of a book by Suzi Orman who says that you need a trust. I think Jason (above) is on to something. I will be subscribing to these comments and I hope more people chime in with their $0.02.
MP says
Yikes. Do it yourself wills? Don’t do it. Especially when you have minor children. In some jurisdictions, do it yourself wills can be challenged far easier than wills drawn up by a lawyer.
You have children. There are guardianships to consider. Trust funds. You have property. Is title joint tenancy or tenants in common? Don’t know the difference? That’s why you need a lawyer. He or she will tell you and advice you based on what’s best for your situation.
What if you and your spouse die together? What if the guardian you chose predeceases you? What if your executor pre-deceases you? You’re leaving money to various individuals in your family? What if one predeceases you? Per capita disposition or per stirpes disposition? Don’t know the difference?
That’s why you need a lawyer. You have minor children and own property. This is not simple. Simple is you are single and rent.
MP says
Oops…also forgot – trusts. Minor children. You must set up a trust for their care. You never know what will happen if something should happen to you. Families that used to get along may not after you die. This is not simple.
While you are at it, don’t forget about POAs. You both need powers of attorney for property and personal care should anything happen to you and you are injured and cannot care for yourself.
Sense says
suze orman has a will and trust kit that she was giving away free a while back. Not sure what it costs straight out–but I think $55? it was very easy and simple to fill out. All I have to do now is get my and a witness’s signatures notarized. however, I’m single, 31, no kids, no property, and am worth less than $20K USD (including retirement) total, so I’m really just using the package for the power of attorney and health directive portions, not the will portion!
becca says
Definitely a lawyer. I am with you on wanting to save money, but not if it causes heartache and any kind of doubt in what would be an already difficult situation. Each state’s laws are different regarding estate issues, so what the form says is legal may not in fact be binding at all in your particular jurisdiction. Go for the lawyer. It might seem like a lot now, but it will be worth it should the will ever need to be used.
Sarah says
Since you have a business, that could really complicate matter especially with business continuity etc as well as taxes & other matters.
I think in your situation, you need to consider how your business is to continue if both you & your husband dies at the same time. Any exit strategy i.e. sell, close etc Consider this when you are planning your will and trust. Suggest to talk to a lawyer & also a good financial planner.
DIY will options are great if your situation is straightforward. My 2cents
Sam says
I’d go the atty route. There’s a lot if/then that could come up.
The atty I had do mine was frugal minded and he has done some things to eliminate greif if the will is implemented.
One thing he had me do was in the event that all my heirs are deceased the money is to go to specific charity. If that Charity is closed/out of business then the money is to go to the United Way(which will hopefully always be around). A co-worker had an Aunt (who had no children ) who died 5 years ago. The Aunt wanted half of her estate to go to the Catholic school she graduated from – the school closed before the money was divided up. Cousins have had the entire thing in court ever since over what to do with the funds. You never know how people will change over the years & what kind of dynamics could surface. That said, such a thing would never happen on my Dad’s side of the family but I could see my Mom’s family causing such greif since my Grandpa (the one who kept everyone in line) died.
One other thing he had me do is is my executor predeceases me & the back up does too then the law firm will become the executor & the fee for the service is already sited in the will as well as another law firms to take the reigns if needed.
The will software tends to not take details into account. My trust will pay for all of my son’s college tuition if he maintains a C average or above in college. He gets some kind of bonus upon graduating and then he gets annual allotments until the money is gone. If he doesn’t go to college then he gets a small chunk when he’s 25 and the remaining sum when he is 45.
There’s also a stipulation that if medical issues arise (that exceed more then 10% of his income if he’s over 18) that the trust money can be accessed then – I got that from my Grandpa’s will. It really helped my Aunt who got cancer.
One other thing to possibly note is that no spouse of your heirs is entitled to any portion of your estate.
Anyway – these are details that the will software didn’t contemplate but the atty knew to keep any eye out for or that I had seen within my own family. I’m sure there’s other things I’m forgetting.
A financial planner might be able to point you to a good atty… and maybe (depending upon your skill set) you could barter part of the legal fee? I built my atty a computer and fixed his laptop – that covered almost all of the fee.
ctreit says
I think almost any will is better than none as long as you fulfill your state’s requirements for a valid will. We used an attorney because we have some complicated issues and we did not quite trust that a will software would be able (a) to account for our special circumstances (you only find out after you buy it), and (b) to give us good suggestions how to provision for various possibilities.
Irene says
Let’s just say you get what you pay for. Any will is never straightforward. Your situation is unique to you, and no cut-and-paste template will see any loopholes or potential things missed out. There is no guarantees that your family will be 100% on board with your wishes. Death is a very emotional thing for people, and sometimes the worst comes out in these situations. We are currently doing up our wills right now, and our lawyer friend has told us some really bad stories of people who have poorly written wills, never mind no wills. You’ll be surprised how often thing can get contested and how people will fight over your children and their inheritance. It’s just not worth it. Go the lawyer route.
For me, the several hundred dollars spent means peace of mind for us and a good future for our son. I never want my son to be caught up in a legal battle that can last years potentially. The several hundred dollars is an investment for his future, not a liability. That’s how I see it.
Cat says
I used LegalZoom.com. My uncle (a lawyer) looked it over and said it was about the same as anything he would produce. If your situation is complex- businesses, lots of assets, lots of kids- use a lawyer. But legal zoom did a great job on my simple will.
gorillabuns says
just looking at all these answers have confused me even more!
Bet says
I’m sure someone else has commented on this, but I don’t have time to read through all the comments. So, I’m gonna hit you with the screaming yikes that hit me when I read you were interested in do it yourself Wills.
Don’t.
My dad was a probate attorney. Your will is not simple if it involves children. Not to mention the fact that do it yourself wills are not good in many states (in Minnesota they are NOT!). These sites will tell you that they are good in all states, but they aren’t.
Our will cost $800 start to finish. They did a guardianship and living wills, advance directives, etc. Worth every penny!
Don’t do your own. It will only cost your kids if you both die in an accident or something terrible like that.
AL says
I absolutely suggest you use a qualified attorney! My grandmother used the attorney on staff at the company she worked for to write the will, advance directive, etc. – “one of her perks” at work.
Unfortunately, as things fell apart with her health, so did the paperwork created by the attorney. He had used the term “upon my [her] death” in all the paperwork, which meant that none of her wishes would be considered until her death (of course this was fine with the will, but not with the other paperwork).
Fortunately, a doctor noticed the wording and she recovered enough for us to have things redone, but we could have been dealing with a much larger problem.
I got my frugal streak from her, but will be paying later this spring to have mine affairs ordered by a true professional. Good Luck!
MAM says
One good use for legal software is as a sort of practice run. Your time with an attorney probably will cost you by the hour, and if you’ve thought about the answers to all the questions ahead of time you won’t have to spend extra time in the office when you’re blindsided by a question or realize the spouses don’t agree on an issue. –Mary
Jason @ MyMoneyMinute says
@MAM — just to let you & others know, typically a will package is done on a flat-fee basis, not on an hourly rate. Only super complicated e$tate$ ($$$) may end up with hourly fees, because they’re might be entities or trusts set up to help avoid estate tax down the road.
Marsha says
Before deciding between software and an attorney, know the law in your state. Consider what your will is for: peace of mind, distribution of assets, ensuring that your estate can be executed by your designated executor rather than tied up in court. Talk about these things with your spouse. As long as you’re talking about difficult subjects, you might also consider advance directives. What happens if you don’t die but are severely injured and not expected to recover normal functioning? Make it easy for your family to honor your wishes by letting them know what those wishes are. End of life medical decisions can create even more chaos than family disagreement over a will and possessions.