Writing a will is a crucial step in ensuring that your assets are distributed according to your wishes after your death. Despite its importance, fewer than one-third of adults in the United States have taken this step. For those looking to create a simple will without incurring hefty attorney fees, there are several effective online resources available.
One of the main reasons for drafting a will is to avoid having your estate settled according to state law, which often follows a strict hierarchy. In most cases, assets are allocated first to a spouse, then to children, followed by siblings. It’s also vital to note that certain accounts, like jointly owned properties or bank accounts, transfer directly to the co-owner, regardless of the stipulations in a will. Similarly, retirement accounts and life insurance policies are paid out to designated beneficiaries, making it essential to keep these details current.
For individuals with straightforward estates, online will-making programs provide a cost-effective alternative to hiring an attorney. These platforms guide users through a series of questions to generate a personalized will in approximately 30 minutes. Among the top-rated options are:
Quicken WillMaker & Trust 2025, available for $109, is valid in all states except Louisiana. Another option, Trust & Will, charges $199 for a comprehensive individual will-based estate plan. LegalZoom offers will-centric estate plans for $129, or $149 with additional assistance from an independent attorney.
For those seeking free alternatives, both FreeWill.com and DoYourOwnWill.com allow users to create their wills at no cost.
If your financial situation is more complex—such as having a blended family or a child with special needs—consulting with a legal professional is advisable. A lawyer can help navigate these complexities, preventing potential disputes among heirs. The National Academy of Elder Law Attorneys and the National Association of Estate Planners & Councils offer online directories to locate qualified estate planning attorneys.
The cost of hiring a lawyer to draft a will typically ranges from $200 to $1,000, depending on location and complexity. To ensure you receive the best value, consider obtaining quotes from multiple firms. Preparing a detailed inventory of your assets before meeting with an attorney can make the process more efficient.
Once completed, it is crucial to store your will securely. Options include a fireproof safe at home, a bank’s safe deposit box, or a secure online storage solution. It’s essential to inform your executor about the location of the will and ensure they have access to it. Additionally, updating your will after significant life changes, such as marriage, divorce, or relocation to another state, is important to maintain its relevance.
Understanding Social Security spousal benefits is another area of concern for many individuals planning their future. These benefits are designed to provide income for spouses who may not have extensive work histories. To qualify, several criteria must be met: the spouse must be at least age 62, the couple must have been married for at least one year, and the primary earner must already be receiving retirement benefits.
For example, if a spouse has spent many years as a homemaker, they may be eligible for spousal benefits based on the primary earner’s work history. The maximum spousal benefit can equal 50% of the primary earner’s Primary Insurance Amount, which is the benefit available at full retirement age, typically 67 years for those born in 1960 or later.
If the spouse claiming the benefit starts early, at age 62, the spousal benefit will be reduced to approximately 32.5% of the Primary Insurance Amount. It is essential to note that spousal benefits are not impacted by the primary earner retiring early, but they do not increase if the primary earner delays their claim beyond full retirement age.
Additionally, if the spouse has their own work record but it results in a lower benefit than what they would receive as a spouse, they can claim the higher amount, but not both. Survivor benefits are also available, providing financial support to spouses and ex-spouses starting at age 60 (or 50 if disabled).
To maximize benefits, various online calculators can assist in determining the optimal time to claim Social Security. Resources like OpenSocialSecurity.com are free to use, while MaximizeMySocialSecurity.com offers a more comprehensive analysis for $49 per year.
Creating a will and understanding Social Security benefits are significant steps in financial planning. Taking advantage of available resources can help individuals make informed decisions about their estates and retirement incomes, ultimately providing peace of mind for themselves and their families.