Home | Personal Advice | Personal Columnists | Rich Best
Rich Best has spent 28 years in the financial services industry, as an advisor, a managing partner, directors of training and marketing, and now as a consultant to the industry. Rich has written extensively on a broad range of personal finance topics and is published on several top financial sites. Recent books include The American Family Survival Bible and Annuity Facts Revealed: What You MUST Know Before You Invest.
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Creating a Simple Estate Plan on a Budget: Affordable Steps to Ensure Your Wishes Are Followed Many people delay estate planning because they think it’s only for the wealthy. But the reality is, if you don’t plan your estate, the government will handle it for you, and it likely won’t match your wishes. The fact is that you don’t need an expensive lawyer or complex trusts to protect your loved ones and ensure your wishes are followed when you’re gone. A simple estate plan can be created affordably—often for less than $300—by utilizing free resources, online tools, and do-it-yourself methods. This guide offers practical, budget-friendly steps to get started, helping you safeguard your assets without spending a lot. Why Bother with a Simple Estate Plan? Estate planning isn’t just about distributing money; it’s about preventing chaos. Without it, state laws determine who inherits your belongings, which can lead to family disputes, probate delays, and unnecessary taxes. According to the American Bar Association, over 50% of U.S. adults don’t have a will, leaving billions in assets exposed. On a budget? Start small: a basic plan includes a will, beneficiary designations, and end-of-life instructions. The benefit? Peace of mind and savings—probate alone can cost 3-7% of your estate. Step 1: Inventory Your Assets (Free) Begin by listing what you own. Categorize by:
Time: 1-2 hours. Cost: $0. Tools: Free apps like Everplans or Mint for tracking. This snapshot ensures nothing is overlooked. Step 2: Designate Beneficiaries (Free) Many assets bypass wills via "payable-on-death" (POD) or "transfer-on-death" (TOD) designations. Update:
Pro Tip: Name primaries and contingents to avoid lapses if someone predeceases you. Cost: $0. Impact: Bypasses probate, saving thousands in fees. Step 3: Write a Basic Will (Under $20) A will names your executor and heirs. Skip lawyers—use free templates from reputable sites:
Sample Clause: "I leave my home to my spouse; if none, equally to my children." Customize for guardians if you have minors. Time: 30 minutes. Total Cost: $0-20. Step 4: Add a Durable Power of Attorney (Free-$15) This appoints someone to handle finances if you’re incapacitated. Free templates from AARP.org or Rocket Lawyer. Sign and notarize (many banks do it free). Cost: $0-15 for notary. Step 5: Create a Health Care Directive (Free) Combine a living will (end-of-life wishes) and a medical power of attorney. Use Five Wishes ($5 printable) or CaringInfo.org (free). Specify whether you want lie extending care or organ donation. Share copies with doctors and family. Step 6: Organize and Share (Free) Store documents in a fireproof box or a free digital vault like DocuSign. Tell your executor where to find them. Update every 3-5 years or after life events (marriage, birth). Budget Breakdown
Common Pitfalls to Avoid
Final Thoughts: Act Now for Lasting Legacy Creating a simple estate plan on a budget is easy and empowering. With these steps, you’ll make sure your wishes—whether funding a child’s education or donating to charity—are fulfilled quickly and affordably. Remember, the real expense is inaction: arguing heirs and lost assets. Download your first form today from FreeWill.com and take control. Your future self (and family) will appreciate it. In just one afternoon, you’ve invested in love, not lawyers. Archive |