For people planning their estates, advisors say that there are four must-have documents. These comprise a will, among others. A will includes the instructions that your family will follow after your death. It says how they will distribute your estate to the heirs. Your estate can consist of your intangible belongings, vehicles, bonds, stocks, and interests other than properties. Creating a will to prescribe what happens to your estate once you die is a great idea. You don’t necessarily have to rely on attorneys to make a will, and many platforms encourage DIY wills. You may be speculating, is there something I need to know before I create my own will?
If so, this guide will combine the crucial information and practical tips that you require.
Which Type of Will Should I Create?
Depending on your preference, you can pick from these four types of wills while creating your own.
- Simple Will
It is the most basic type of will that most people are familiar with. It merely includes how you want people to deal with your estate once you are dead. You can make bequests to transfer your assets to beneficiaries. You will be asked to appoint an executor or someone responsible for carrying out your wishes on your behalf. So, if you die with unpaid debt, the executor will settle your accounts using your assets.
- Testamentary Trust Will
This type of will is common among people who have minor children financially dependent on their parents. Sometimes, people include a testamentary will as a provision of the simple will. A testamentary will involves a trustee, a trustor, and beneficiaries. As a trustor, you can create a testamentary or living trust. The former will activate after you have died, and the latter will exist even when you are alive. The trustee will be responsible for keeping your money or estate safe and assigning it to your children when they mature.
- Joint Will
If you are married, you may consider a joint will. It is practically a single will that both partners have agreed to sign. It is common in partners who have a joint tenancy. Most often, mutual wills dictate a succession of events. According to these, when one spouse dies, the other will inherit their assets; when the other also dies, their beneficiaries or children will inherit the estate in the manner given.
How Much Does Creating a Will Cost?
The costs of a will depend on which method you use and whether you hire an attorney to help you along the way. It can also depend on the worth of your estate.
People who create their own will find that it costs less than $100. It can comprise writing a will at home or doing it through online services. On the flip side, if you hire an attorney, you will have to pay considerably more. The approximate cost for such a will is from $500 to $1,000.The cheapest way of creating your own will is using a DIY kit. These are instrumental for people who have relatively less estate. These kits cost $10 on average, and most people can use them successfully.