Even if you don't have a house full of priceless antiques, or a bloated bank account waiting to be divided among your nearest and dearest, if you have a kid, you need a will. The document is necessary not only to distribute your assets, but to name a guardian for your children should something happen to you. Otherwise, you're leaving these vital issues to the courts. Since estate planning requires people to confront grim matters, many tend to put it off (sound familiar?). But once you know your options, as briefly explained above, it's a pretty painless task.
After you've drafted your will, it's important to put the original in a safe place at home and keep a copy in a safety deposit box or with your attorney. Make sure someone—a family member, lawyer, or trusted friend—knows where it is and can access it. You should also review your will every three to five years. While a well-drafted one should automatically cover additional children, it's a good idea to revisit the distribution of your (ideally) ever-growing assets. And of course, events like divorce, remarriage, and a windfall of cash call for another look as well.
Estate-Planning Software
for: Do-it-yourselfers
cost: $50 and up
time: One afternoon
If your estate isn't too complicated, you can use programs like Quicken Willmaker Plus 2007 Estate Planning Software, which costs about $50. Online services like LegalZoom.com will run you a little more, roughly $70 for a standard will, but they also review each submission for simple mistakes and send it back on archival-quality paper within 48 hours. Both choices use a question-and-answer format that is simple to navigate but allows for customization. Want to leave a favorite necklace to your daughter when she turns 16, or make arrangements for the family dog? No detail is too small. When you print out your will (or receive it in the mail), make sure to sign it in the presence of two people (three, if you live in Vermont). While a notary is not required in most cases, using one can help prevent prolonged legal battles should anyone contest the will.
a holographic will
for: Extreme situations
cost: Free
time: How fast can you write?
If you're about to go on your annual skydiving trip and you don't have a will—or you just want to have something in writing until you have time to draft an official document—a holographic will is a temporary solution: Just handwrite your wishes, then sign and date the document. (It may sound like something out of a soap opera, but it will hold up in court in about half the states.) But remember: A will written without legal guidance can be rife with oversights and ambiguities. Replace it with the real deal as soon as you land.
A traditional lawyer-assisted will
for: Complete peace-of-mind
cost: $500 and up
time: An initial two-hour meeting, then four to six weeks to complete
If you have substantial assets—anything over $2 million—you will want a professional to set up a major estate plan for you. But people with smaller bank accounts may still need an attorney: members of blended families, say, or parents of a disabled child. And while it's tempting to avoid the cost of a lawyer, paying someone up front could save your heirs money in the end by minimizing your estate taxes or eliminating potential disputes. Attorney Dennis Belcher, former chair of the American Bar Association's Real Property, Probate, and Trust Law section, says some parents use lawyers to set up "incentive motivated" trusts that give children money only when they have a job, submit to a drug test, or reach certain milestones.
