Creating a will is a crucial step in estate planning, ensuring your assets are distributed according to your wishes after you’re gone. But How Much Does It Cost To Get A Will? The answer varies depending on several factors, including the complexity of your estate, the type of will you choose, and whether you opt for a DIY approach or hire an attorney. This guide breaks down the costs associated with creating a will, providing you with the information you need to make an informed decision.
Understanding Different Types of Wills and Their Impact on Cost
The type of will you need will influence the overall cost. Here’s a look at the most common types:
- Simple Will: This is the most basic type of will, outlining how you want your assets distributed after your death and naming an executor to carry out those wishes. It’s typically the least expensive option.
- Testamentary Trust Will (Trust Will): This type of will establishes a trust that holds your assets after your death. A designated trustee manages the trust for your beneficiaries, often chosen when beneficiaries are minors or require ongoing asset management. Expect this to be more expensive than a simple will.
- Joint Will: This is a single will for a couple, where each spouse is the beneficiary. Joint wills are binding, meaning the surviving spouse cannot alter the terms. While seemingly cost-effective upfront, they can create complications later and are generally not recommended.
- Living Will: A living will specifies your preferences for medical treatment if you become incapacitated. While crucial for healthcare planning, it’s separate from a standard will and involves different cost considerations.
Legal Fees and Costs of Will Creation: DIY vs. Attorney
The most significant cost factor is whether you create a will on your own or hire an estate planning attorney.
The Cost of DIY Will Creation
If you choose the DIY route, you have several options:
- Holographic Will (Handwritten Will): Creating a will entirely in your own handwriting can be cost-free. However, these wills are often challenged in court, especially if they lack clarity or don’t meet specific state requirements. This is generally not advisable for complex estates.
- Online Will-Making Services: Numerous online platforms offer templates and tools to create a will. These services typically cost between $39 and $200, making them a budget-friendly option. While affordable, ensure the service complies with your state’s legal requirements.
- Downloadable Templates/Kits: These offer a middle ground, providing fill-in-the-blank forms. Costs are typically lower than online services, but customization options may be limited.
The Cost of Hiring a Lawyer to Draft a Will
Engaging an estate planning attorney offers the benefit of expertise and ensures your will is legally sound and tailored to your specific situation. This is particularly important for complex estates or blended families.
- Attorney’s Hourly Rate: The average hourly rate for an attorney is around $391. The time required to draft a will varies depending on the complexity of your estate.
- Flat Fee: Many attorneys offer a flat fee for drafting a simple will, ranging from $300 to $1,000 or more.
Keep in mind that larger firms may charge higher rates, and attorneys often bill in minimum increments (e.g., six minutes). Also, you’ll be charged separately for the work of associates or paralegals involved in your case, though at lower rates.
Additional Estate Planning Costs
An estate planning attorney may recommend additional documents to complement your will, such as:
- Living Trust: A living trust provides more detailed instructions for managing and distributing your assets and can help avoid probate. Expect fees of $1,200 to $2,500 or more.
- Durable Power of Attorney (DPOA) for Finances: This document grants someone the authority to make financial decisions on your behalf if you become incapacitated. Costs typically range from a few hundred dollars.
- Living Will: As mentioned earlier, this outlines your preferences for medical treatment if you’re unable to communicate. Costs are usually around $100.
Ways to Save Money on Creating a Will
Estate planning doesn’t have to break the bank. Here are some strategies to reduce costs:
- Review a Holographic Will with an Attorney: If you choose to draft a holographic will, have an attorney review it to ensure its validity. This can be less expensive than having them draft the will from scratch.
- Utilize Online Services or Templates: As mentioned, these offer a cost-effective alternative to hiring an attorney outright.
- Check for Free State Templates: Some states provide free will templates on their official websites.
- Seek Pro Bono Assistance: Contact your local legal aid office or state bar association to inquire about pro bono services or free legal workshops.
- Enroll in Legal Insurance: Legal insurance plans, like MetLife Legal Plans, provide access to attorneys at reduced rates for estate planning services.
- Keep Your Will Simple: The more straightforward your wishes, the easier (and less expensive) it will be to create a will.
Conclusion: Making the Right Choice for Your Needs
The “how much does it cost to get a will” question has a multifaceted answer. The best approach depends on your individual circumstances, the complexity of your assets, and your budget. Carefully weigh the pros and cons of DIY options versus hiring an attorney to make an informed decision that protects your loved ones and ensures your wishes are honored. Putting a will in place is a vital step in responsible financial planning, regardless of the route you choose.
