Dying without a will can leave a knotty financial mess for your loved ones to unravel. But only one in four Americans has a valid will, according to a new survey from Western & Southern Life Insurance.
Barely half of respondents (53%) reported being confident that they understood their spouses’ wishes. Even fewer (48%) could say the same about their parents.
Nearly a third of those surveyed (30%) admitted they’ve never discussed end-of-life financial plans with their family members.
Protect your loved ones with one of these top online will-makers
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Online willmaker Trust & Will offers an easy-to-follow question-and-answer format and access to attorneys who can provide a line-by-line review or advise on estate and tax planning topics. You can print your documents or have them shipped to you.
$199 for an individual will, $299 for a joint will; $499 for an individual trust, $599 for a joint trust
“People don’t want to talk about a will for emotional reasons,” Mary Clements Evans, a certified financial planner and president of Evans Wealth Strategies, told CNBC Select. “They don’t want to think about their death or their spouse’s death.”
Over half (54%) of respondents admitted discomfort kept them from broaching the topic.
But the silence around estate planning can have devastating consequences: Most Americans struggle financially when a family member dies and they’re left grappling with both funeral costs and the loss of income.
While many count on life insurance to cover expenses, a quarter of respondents said they faced difficulty accessing death benefits or other critical funds.
Close to 40% turn to credit cards and personal loans to close the gap, according to the report.
Without a will, your estate could be tied up in a lengthy probate process, Evans said, “and the state gets to decide who gets your assets.”
State intestacy laws have specific rules for spouses, children and siblings that might not align with your interests.
The advent of online will-makers has made estate planning much easier and more affordable. Users follow simple prompts and can have a legally binding document recognized in all 50 states in one afternoon.
Since launching in 2017, Trust & Will has helped over a million Americans codify their end-of-life plans, with basic wills starting at $199 and trusts starting at $499.
“Talking about end-of-life planning can feel heavy, but it doesn’t have to be,” Trust & Will CEO Cody Barbo told CNBC Select in an email. “Creating a will online removes much of the fear, cost and complexity that have historically held people back.”
Wills FAQs
Do I have to have a will?
You’re not legally required to have a will. Without one, however, you won’t have control over who inherits your assets or becomes guardian to your children. In addition, a will allows you to appoint an executor and can greatly simplify the probate process.
Is an online will a good idea?
An online will is an affordable solution for many people, especially those who are hesitant about the time commitment and expense involved in traditional estate planning or are uncomfortable discussing end-of-life topics with strangers. However, people with large estates, complex family dynamics or minor children may need personalized care from a qualified estate planning attorney. And even if you choose an online option, you should still consult family members and experts about your wishes.
Are online wills legit?
As long as it meets all of your state’s legal requirements, an online will is as binding as one prepared by an attorney. In many cases, you’ll need to print the will and sign it in front of two witnesses who are not beneficiaries.
In some states, the relevant parties can sign electronically. In others, it needs to be in ink and notarized.
When should I update my will?
You should review and update your will every three to five years, according to AARP. You may also want to revisit it in the wake of life changes, like the birth of a child, a marriage or divorce, or a move to a new state.
Meet our experts
We work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed certified financial planner Mary Clements Evans, the president of Evans Wealth Strategies, a wealth-management firm in Emmaus, Pennsylvania.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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