A whopping 67% of Americans don’t have an estate plan (that’s approximately 221 million people!). If you’re part of this percentage, don’t feel bad. You can rest assured that this is a judgment-free zone. Whether you’ve avoided thinking about the topic altogether or believe you can’t afford to set up an estate plan, we’re here to tackle those concerns head-on! With the prevalence of online estate planning tools, you can establish a comprehensive estate plan from the comfort of your own home. Let’s dive into the world of online estate planning together, shall we?
What exactly is estate planning?
Before we get started, let’s unpack the term “estate planning” so that we’re all on the same page. Estate planning refers to the process of planning how your assets (including your home, car, bank accounts, and personal property) should be managed or distributed after you pass away. It allows you to ensure that your wishes are carried out and that your loved ones are provided for in the way you desire.
Who needs an estate plan? (Spoiler alert: everyone!)
The simpler question would be, who doesn’t need an estate plan? Everyone can benefit from having an estate plan, regardless of their age, financial status, or family situation. If you fall into any of the below categories, having an estate plan is particularly important:
Parents with minor children
Estate planning allows parents to designate guardians for their minor children in the event of their death or incapacity. This ensures that your children will be cared for by someone you trust.
Homeowners
If you own real estate or other significant assets, an estate plan can specify how these assets should be distributed after your death, minimizing potential disputes among your surviving family members. Without an estate plan, you lose control over who inherits your house. This could mean your house passes to unintended beneficiaries or is sold against your wishes.
For example, let’s say you pass away unexpectedly without an estate plan. Your house, which you intended to leave to your children, becomes tied up in lengthy probate proceedings. Because there’s no clear instruction, family disagreements arise over who should inherit the property. As a result, legal fees pile up, delaying the resolution and potentially diminishing the value of the house intended to be left for your loved ones. Having an estate plan in place ensures that your wishes regarding your house and other assets are clear and legally enforceable.
Married couples
Remember that whole “Til death do us part” thing? Even after you’re gone, you’ll probably want to make sure that your spouse is well-taken care of. If so, estate planning allows you to include provisions that ensure your spouse is financially supported and your assets are distributed according to your wishes after you pass away.
Retirees
As people approach retirement, estate planning becomes crucial for managing retirement accounts, pensions, and other financial assets, as well as ensuring healthcare directives are in place.
Business owners
Business owners should have an estate plan that addresses succession planning, ensuring the smooth transfer of ownership and management of the business in the event of death or incapacity.
Individuals with specific wishes
If you have specific wishes regarding your healthcare preferences, charitable donations, or the distribution of sentimental or valuable personal property, an estate plan can ensure these wishes are honored.
High net-worth individuals
Estate planning can help you minimize estate taxes and protect your assets from creditors, ensuring that your wealth is preserved and distributed according to your intentions.
What kind of estate planning documents can I create online?
These days, the sky’s the limit. There are several types of estate planning documents that you can create online, either through do-it-yourself platforms or with the assistance of online tools like Trust & Will. Here are some common estate planning documents that can typically be created online:
Last Will and Testament
Better known as a “will,” this is a legal document that specifies how you want your assets to be distributed after you pass away. Online platforms often provide templates and guides for creating a will tailored to your state’s laws.
Living trust
This is a legal entity that holds your assets during your lifetime and specifies how they should be managed and distributed after you pass away. Online services may offer tools to create a revocable living trust and transfer assets into it.
Power of Attorney
This is a document that appoints someone to manage your financial and legal affairs if you become unable to do so yourself, such as through a disability or incapacitation of some sort.
Healthcare directive (Living Will)
A living will is a document that outlines your preferences for medical treatment and care if you become incapacitated and unable to communicate your wishes.
Are online wills legitimate?
Yes, they certainly can be, as long as they follow the appropriate state laws! Many reputable online platforms provide templates and forms that are customized to comply with the laws of your state. It’s important to choose a service that offers templates specifically tailored to your state’s legal requirements.
Some online platforms also offer options for consultations with attorneys to review your documents or provide legal advice, which can be helpful for more complex situations or to ensure compliance with your state’s requirements. Ultimately, online wills can be legitimate and legally binding if they are created and executed according to the laws and requirements of your state.
How do I make my online estate planning documents legally enforceable?
Proper execution of the will is crucial. This typically involves signing the will in the presence of witnesses who are not beneficiaries and, in some cases, having it notarized. Each state has its own rules regarding the validity of wills, including requirements for witnesses, signatures, and notarization. Online estate planning services should guide you through these requirements to ensure your will is legally enforceable.
What should I do with my online estate planning documents once they’ve been signed?
After you sign your documents, it’s important to store them safely to ensure that they can be easily accessed when needed. Here are some recommendations on what to do with your estate planning documents after they have been signed:
Store in a safe place
Keep the original signed copies of your documents in a secure location, including a safe deposit box at a bank, a personal safe at home, or a secure filing cabinet.
Inform trusted individuals
Inform your executor, trustee, or designated agent about the location of your estate planning documents and how to access them. Provide them with any necessary keys, codes, or combinations needed to retrieve the documents.
Consider copies
Make copies of your signed estate planning documents for your own records and for any individuals named in the document. However, remember that only the original signed copy is legally binding.
Review periodically
Review your estate planning documents periodically, especially after major life events like births, deaths, marriages, divorces, or significant changes in your financial situation. Update your documents as necessary to reflect any changes in your wishes or circumstances.
Keep it current
If you make updates or changes to your will, ensure that the new version is properly executed and that outdated versions are discarded to avoid confusion. By taking these steps, you can help ensure that your estate planning documents are kept safe and that your wishes are carried out as intended when the time comes.
The bottom line on estate planning online
Online estate planning offers a user-friendly way to create important legal documents like wills, trusts, and healthcare directives. It’s convenient and accessible, allowing you to take control of your affairs without having to leave your own couch. While online estate planning can be cost-effective and efficient, your documents must be executed correctly and comply with your state’s legal requirements to be valid and enforceable. Whether you’re starting a family, planning for retirement, or simply organizing your assets, online tools can help simplify the process and provide peace of mind, knowing your wishes are documented and protected.
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