by Bruce L. Dorner
What will it cost for…..
In my last column I outlined some of the basic issues relating to wills and estate planning. I received a number of calls about that article and several readers contacted me to either create or revise their wills (thank you very much.)
From these calls I learned that the frugal Yankee spirit is alive and well in Londonderry. Most of those who phoned started with, “how much will it cost for a will?” Well, the answer to that question, in good lawyer-like fashion is, “it depends.” Permit me to clarify.
The cost for legal services, whether it is for wills or any other matter is dependent upon several factors. Often, attorneys charge for their time on an hourly rate. Sometimes the fee is based on a blend of an hourly rate and cost per page for revision to documents the attorney may have used in the past for other clients. The lawyer needs to modify the documents, but not completely rewrite them.
Occasionally, an attorney will agree to a fixed fee for a particular project where the task is well defined and no surprises or curve balls are expected. Another alternative is a contingency fee case in which the attorney receives a percentage of the recovery. This is common mostly in tort cases (traffic accidents, etc.) where insurance is available to pay the claim. In any event, the point to note is that you should have an open and frank discussion with your attorney about the charges you should expect and what events might impact the cost as the matter progresses. It is always best, if the project will take some time, to get the agreement in writing so both the attorney and the client are comfortable with the charges and billing arrangements.
Now, returning to the original question of what will it cost for a will, let’s examine the matter. First, a will is only one document in the estate planning toolbox. Most families (husband and wife) need individual wills. Second, they often need individual powers of attorney and these documents may require additional letters of instruction as to how and when they may be used. Third, many families benefit from a health care directive (living will), which deals with the issue of the end stage of a terminal illness where the patient is kept alive by artificial means (brain dead, etc.). Fourth, we often prepare a health care power of attorney to designate someone to make decisions in the event the principal is temporarily unable to make health care decisions for himself or herself. Fifth, some families benefit from a form to nominate a guardian in the event the principal becomes incapacitated. Sixth, if the estate is large, or if there are family complications we often need to explore the use of trusts or other legal devices to segregate assets for a particular purpose or family member.
Having said all of that, and noting that we’re probably talking about several hours of legal time to meet with the clients, respond to their questions, hold a second meeting (or more) to review all the documents, is it any wonder that we’re talking about a fee in the range of $900 for a basic estate planning package? Gee, most people I know pay more than that for a single year of car insurance and never have an accident. Is $900 (or more) worth spending to protect your family, children and assets? For most people wills and estate plans need to be reviewed every few years. After more than 30 years of helping families with basic estate planning I’d estimate that the average Londonderry family needs to revise wills about every 5-10 years.
Being a frugal Yankee (myself included) is clearly necessary in running a household. Being foolish by not having appropriate legal services is as dangerous as driving without car insurance or failing to have medial insurance. Remember, you hire an attorney to help you write a plan that will assist your family to deal with your death and to provide for their financial welfare and stability. I have several families that I am assisting who did not have wills and supporting documents in place when a loved one died. The cost to correct those errors are far above the cost of a basic plan. Writing a will and preparing a basic estate plan is just like having a fire extinguisher on the wall. You may never need it, but when you do, it better work well!
This article provides general information only. It is not legal advice. You should consult with your own attorney before making any legal decision.