How Much Does it Cost to Write a Will?

Nobody likes to think about death, but having a legal will in place can provide the peace of mind that comes with knowing your loved ones will be looked after when you pass away. So, how much does it cost to write a will, and should you go down the do-it-yourself path or pay a professional?

Why should I write a will?

There are many reasons to write a will. Also known as a last will and testament, it is a legal document that outlines how and to whom your assets and belongings should be distributed after your death. This provides peace of mind for a number of reasons: Distribution of assets: One of the most important reasons to write a will is to ensure your assets and property are distributed according to your wishes. This also helps to prevent disputes among your family members. Protecting unmarried partners: If you're not legally married or in a de facto relationship, your partner may not automatically inherit your assets. Including your partner in your will solves this problem. Guardianship for children: If you have children under the age of 18, a will enables you to appoint a legal guardian who will take care of them after your death. This can motivate you to choose an appropriate guardian, get their agreement, and give you significant peace of mind. Business succession planning: If you’re a business owner, a will can be a critical aspect of your succession plan. You can outline your wishes for the future of your business, and specify who should inherit or manage the business. Executor appointment: As part of the process of writing a will, you’ll need to name an executor. This is the person responsible for ensuring that your wishes are carried out. Going through the will writing process gives you the opportunity to choose someone you trust. Avoiding intestacy: If you pass away without a will (intestate), the distribution of your assets will be determined by state laws. This may be contrary to your wishes, and could result in a distribution you would not have chosen. Charitable giving: If you have specific charities or causes you wish to support, a will allows you to include provisions for charitable donations. This ensures you can leave a lasting impact beyond your lifetime. Funeral arrangements: You can include your preferred funeral arrangements, burial, or other end-of-life decisions in your will. This can take the decision-making burden from your loved ones during their time of grief.

How much does it cost to write a will?

There are generally three ways to a write will:

• Pay a private solicitor to write your will.

• Go to the Public Trustee in your state or territory.

• Use a DIY will kit.

If you choose to use a private solicitor to write your will, will costs can vary widely depending on its complexity and the fees your solicitor chooses to charge. As a general guide, getting a solicitor to write your will can cost anywhere between a couple of hundred to a few thousand dollars. In Australia, the Public Trustee in each state and territory offer will-writing services. Public Trustees are government entities that provide a range of services related to wills, estates, and financial matters. They can assist individuals in drafting and updating their wills, often for a fee. Here’s how much Public Trustees charge to write your will by state or territory:

Alternatively, you can take a do-it-yourself approach to writing your will. Australian Seniors offers a free, legal will kit you can use as a guide to prepare your own will. You can download the Australian Seniors free will kit here. You can also buy DIY will kits from many participating newsagents and Australia Post outlets.

Does a Will supersede a life insurance beneficiary?

Not legally. If a beneficiary is nominated in your life insurance policy, then the insurer pays the proceeds of the policy directly to your beneficiary. In essence, the monies payable under your life insurance policy aren’t part of your estate and won’t be passed onto the beneficiaries named in your legal Will.

What happens to a life insurance policy when the owner dies?

When the policy owner dies, the life insurance company pays over the death benefit to your named beneficiary. If no named beneficiary exists, the death benefit is paid to the deceased's estate. The death benefit is typically paid out within 30 days of receiving proof of death.

Can you leave your life insurance to your estate?

Yes - if you don't nominate a beneficiary for your life insurance policy, and you hold the policy in your name (as opposed to a company name, etc.), your life cover benefit automatically becomes part of your estate. The payout becomes part of your pool of assets after you die, and is distributed according to the instructions in your Will.

Do Wills expire in Australia?

No, Wills don’t expire in Australia. However, some major life events may void a Will, including:

• Marriage;

• Divorce;

• Death of an Executor/s;

• Death of a beneficiary/s;

• Disposal of a gifted asset;

• Bankruptcy;

• Changes in family circumstances; e.g. the birth of a high-needs child or having adult kids

Any or all of the above may impact your choices as to how you dispose of your assets, and/or the law’s effect on your existing Will. This is why it’s a good idea to review your Will every two to three years.**

Does a Will override a beneficiary on a life insurance policy?

If you’ve nominated a beneficiary for your life insurance policy then your life insurance policy won’t be included in your estate. If there isn’t a named beneficiary under your life insurance policy then the payout will be included in your estate and distributed according to the terms of your Will.

If your life insurance policy is via your superannuation fund, it’s recommended that you seek advice from your financial advisor on making a binding nomination to ensure any payout monies go to the beneficiary/ies you intended.

What are the risks of writing your own will?

As long as a will is signed by the will-maker and two witnesses, it is legally binding. However, writing your own will with no legal experience can come with some risks, including: Legal validity: Wills are legal documents, and if a self-drafted will does not meet the necessary legal requirements in your state or territory, it may be deemed invalid. This can lead to your estate being distributed according to intestacy laws. Ambiguity: DIY wills may be more prone to ambiguity or unclear language. This can create confusion and potential disputes among beneficiaries. This could lead to legal challenges that could delay the distribution of your assets, and create family feuds. Forgotten assets: You might unintentionally overlook certain assets, or forget to update your will to include newly acquired assets. Complex estates: If you have a complex financial situation, multiple marriages, or a blended family, you may face additional challenges when writing your own will. Professionals can provide valuable guidance on these issues. Tax implications: Your will could have tax implications for your beneficiaries. Without professional advice, you may not fully understand the potential consequences of your decisions. No plan-b: An expert may include provisions for the death of a beneficiary or the incapacity of the executor in your will. A DIY will may not adequately address these scenarios. What will happen to your family after you pass away? Life insurance can help them be more financially secure.

Sources

Public Trustees: NSW - https://www.tag.nsw.gov.au/fees/will-fees

VIC - https://www.statetrustees.com.au/wills/

QLD - https://www.pt.qld.gov.au/wills/making-a-will-step-by-step/

ACT - https://www.ptg.act.gov.au/__data/assets/pdf_file/0009/2166480/ptg-fs-wills.pdf

SA - https://www.publictrustee.sa.gov.au/planning-ahead/am-i-an-eligible-customer

WA - https://www.wa.gov.au/system/files/2023-07/pto-will-testament.pdf

TAS - https://www.publictrustee.tas.gov.au/wills/

NT - https://nt.gov.au/law/bdm/will-and-estate-management-fees

https://www.willed.com.au/guides/what-is-an-executor-of-a-will/

https://www.amandalittleassociates.com.au/estate-planning/how-wills-work-in-australia

https://www.tag.nsw.gov.au/deceased-estates/i-am-beneficiary-will

https://probateconsultants.com.au/how-to-avoid-probate-in-australia

Matthew Lang is the general manager of life insurance at Compare Club. Matthew leads a team of dedicated professionals who are passionate about helping individuals and families make informed decisions about their life insurance needs. Whether it's finding the right coverage for your specific circumstances, comparing policies, or optimizing your existing policy, Matthew and his team are here to provide expert guidance and support.

Meet our life insurance expert, Matthew Lang

Matthew's top life insurance tips

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  Identify what you want out of life insurance before you buy. Knowing the purpose of your life cover will help you choose a policy that meets your needs.

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  It's easy to assume that the sole purpose of life cover is to leave money behind for your family, but there's more to it than that.

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  Life insurers like those on our panel pay an average of 97% of claims in full.

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  There are different types of life insurance, including term life insurance, income protection, trauma cover and total and permanent disability cover.