Your Money : Where There’s a Will...
Anyone with heirs or assets needs a will. But only some people benefit from hiring an attorney--at a cost ranging from a few hundred to several thousand dollars--to write one. Whether you need help depends largely on your age, assets and family situation. This short quiz can help you decide.
1. My total assets, including cash, life insurance, securities, equity in real estate and personal effects, amount to a: less than $100,000 b: between $100,000 and $600,000 c: more than $600,000.
2. My family, to which I plan to leave the bulk of my estate, consists of a: my spouse and our kids b: my current spouse, and my kids from both marriages c: my spouse, former spouse(s:, stepchildren, adopted children, foster children, nieces, nephews, cousins and grandchildren from several marriages.
3. I’d like my will to a: pass my assets to my family and appoint appropriate guardians for my children b: pass my assets to family, friends and charity and appoint guardians for my children c: only pass my assets to beneficiaries who will continue to do what I want them to after I’m gone.
4. I have a family business: a: No b: Not yet, but I plan to c: Yes
5. My assets are predominantly a: cash and liquid securities, such as exchange-listed stocks b: mixed between stocks, bonds and residential real estate c: real estate, minority interests in partnerships, stocks, bonds and investments in closely-held companies.
6. I hate the idea of my heirs paying tax or probate fees on the money I leave them: a: No b: It doesn’t bother me as long as the fees and taxes aren’t excessive. a: Yes; I’ll spend what it takes to make sure my heirs don’t have to pay later.
7. My heirs are a: responsible people who get along with one another and are likely to agree to my wishes. b: responsible adults and minor children whose ability to handle bequests hasn’t been tested c: flakes, incapacitated, or reasonable people who simply don’t get along.
8. I’d like to set up a trust that will distribute a: money to my children when they’re older b: money to charity c: income on some assets to my spouse and equity in those assets to charity or to children.
9. I have used estate planning or asset-protection strategies with some of my assets: a: No. b: Not yet, but I may. c: Yes.
10. I am uncertain about whether I can create a valid will using a will kit or form and would feel more comfortable if I hired a professional to do it for me: a: No. b: It wouldn’t make me more comfortable, but my spouse would be considerably relieved. c: Yes.
Score: Give yourself one point for each “a” answer; three points for each “b” and 10 points for each “c.”
Key:
10-18 points: You’re a perfect candidate for a do-it-yourself will, but be sure to review your will in a few years, particularly if your assets, personal aims or family situation change. For now, however, check your local library for a listing of books that can help you prepare your will. Or, if you’re technologically literate, consider a will-preparation software program, such as WillMaker. The cost of the manuals and computer programs range from $15 to $70.
19-49: You’ve got some issues that are straight forward enough to handle easily with a computer program or kit but a handful of issues complex enough--or a comfort level low enough--to warrant an adviser. If you opt to write your will, consider having an attorney review it. If you’re in this category primarily because your estate is worth more than $600,000, consider talking to a tax or estate planner.
50-100: Hire an attorney. You should expect to pay between a few hundred and $1,000 for a formal will, which may include a trust or two. You’ll pay more if you go in for complicated estate planning techniques. Be sure to pick carefully. Get referrals, and then interview the candidates. The attorney should provide you with an estimate of costs and when the job will be completed. You also can ask for an engagement letter that spells out in writing what you’ve agreed to.
