In general, two routes exist when creating a will: hiring an attorney who specializes in estate planning or writing a will online using software and templates. The second path is often used when someone has a more straightforward financial situation.
Either way, a will (or, more formally, a last will and testament) is an important legal document that makes it clear how you’d like your assets to be distributed after you die, and, if there are minor children involved, it can name the guardian. If you think creating an online will is right for your situation, read on for a step-by-step guide for how to write a will online.
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Recommended: Do I Need a Will
8 Steps to Writing a Will Online
To legally make a will, the testator (the person making the will) must be at least 18 years old and of sound mind — meaning they are generally aware of how much property and other assets they have and understand what they’re signing. Assuming these conditions are met, here are the general steps to follow for writing a will online.
Step 1: Be Clear About Your State’s Laws
Each state has distinct laws when it comes to the number of people who must witness the will, whether the document needs to be notarized and more. Know what your state requires before you get started.
Additionally, if needed, be clear about whether your location allows for emergency remote witnessing and notarization during COVID-19. The American College of Trust and Estate Counsel is working to gather all of this information in one place for easy reference.
Step 2: Choose the Software You’ll Use
A quick Google search of terms like “how to do a will online” will provide you with plenty of template options. You might also consider asking friends and family members if they’ve used a software that worked well for them (or didn’t!).
Then, make comparisons among options before making a choice, paying attention to factors such as:
- Cost: Check pricing structures and fees. Some services will charge a flat fee for services rendered, while others may require a subscription to the site before you can make a will. What services are included in those fees? Which ones aren’t? Some sites have a yearly fee, which you may find worthwhile if the will is being reviewed one or more times a year by an estate planning attorney.
- Ease of use: Just like with any other DIY service, some companies will guide you through how to make a will online more seamlessly than others. Check to see how you can get answers to questions (and if there’s any extra cost for this). Some sites may offer online support or provide a phone number to call. Check, too, to see if the company offers information on estate planning basics.
- Company reputation: Only work with reputable companies. To investigate, you can read online reviews (understanding that virtually all businesses will have some unhappy customers), search for news coverage of the company and check with the Better Business Bureau (BBB) for any complaints about deceptive practices.
Recommended: How Much Does It Cost to Make a Will
Step 3: Name an Executor
After selecting a software, you’ll need to choose an executor, which is the person who manages the estate after the testator dies. Assets (what you own) and liabilities (what you owe) typically go into the estate, and it’s up to you to decide which assets to include in your will.
When you die, the executor is responsible for paying off outstanding debts and then appropriately distributing remaining assets to the beneficiaries, which are the people who receive assets from your estate as set out in your will. This process will include overseeing probate, a court-supervised proceeding where a will is confirmed as authentic, debts are paid off and assets get distributed.
Additionally, it is the executor’s duty to keep your assets safe before distribution and otherwise manage financial issues until the estate is closed.
You’ll typically want to pick someone you trust as your executor, such as a family member or even an attorney. You can also choose more than one person to serve as your executor.
Step 4: Decide How You Want to Distribute Assets
As part of writing a will online, you’ll list your beneficiaries and what they will receive. For example, you might leave 100% of your estate to a spouse or significant other. Or you may leave one-third of your estate to each of your three children.
For each of your beneficiaries, list their full legal name, contact information, date of birth and what assets they should receive. Focus on who would inherit your house, cars, bank accounts and any other significant asset.
You may also decide to list a secondary beneficiary. This person (or people) would inherit your assets if the primary beneficiaries were to pass away before you do or otherwise won’t inherit. The will-making software may refer to secondary beneficiaries as contingent beneficiaries.
Also keep in mind that there are asset distributions that aren’t covered by a last will and testament — in other words, your non-probate assets. Accounts where you name beneficiaries outside of your will can include retirement or pension accounts, life insurance policies and certain bank accounts, among others. Because you’ve already named beneficiaries here, you won’t need to include these accounts in your will.
Recommended: Types of Wills
Step 5: Name a Guardian for Minor Children
In a will, you can also list who would take in your minor children (if any) in the event you were to die. This is an important decision, and you should verify that the guardian you plan to name would be willing to serve in this role.
This is also the area of the will where you can list specific wishes about how your child would be brought up, whether that’s related to religion or their education, and so forth.
Step 6: Follow State Laws to Sign Your Will
To make your will legal and binding, you’ll need to sign it according to your state’s laws. Typically, this means that you must sign the document in the presence of two witnesses who are not beneficiaries or direct relatives. As noted above, COVID has caused many states to modify their requirements, so check what applies to you.
Step 7: Let Key People Know Where Your Will Is Located
Knowing how to make a will online and appropriately completing the process is important — but the process doesn’t quite end there. You’ll also want to let the executor and other key people know where the document can be found. You can put it in a safe or store it electronically as two possibilities.
Recommended: New Parent’s Guide to Setting Up a Will
Step 8: Update Your Will As Necessary
Every few years, review your will to see if any updates should be made. Also review the document if you encounter any major life changes, including:
- Having a child or grandchild
- Getting married or divorced
- Becoming widowed
- Experiencing a substantial change in your finances (for better or worse)
- Developing significant health issues
- Moving to a different state
Also update your will if you want to change your beneficiaries or what they’ll inherit.
The Takeaway
When wondering how to write a will online, these steps will take you through the process. Once you’ve chosen a software service that’s right for you and your will is created, make sure to store it somewhere safe (and that people know where that is) and that you continue to make updates to your will as your life continues to change and evolve.
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This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
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What happens to your personal loans when you die?
What happens to personal loans when the borrower dies? This answer may not be as straightforward as you might think.
Here’s some context. In this post, the term “personal loans” goes beyond the type of installment loan known as a “personal loan” and encompasses loans taken out by a person or people rather than by businesses. It is a complex subject with laws varying by state.
According to the Federal Trade Commission, debts do not in general go away because the debt holder has died. Typically, the debts are paid from the estate of the deceased person.
An estate includes the person’s real estate, cash, financial investments, vehicles and other assets. If there isn’t enough money in the estate, the debts often go unpaid although there are exceptions where someone else is personally responsible for the debt.
Related: Can you use your spouse’s income for a personal loan?
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If someone has a will, it should list an executor. The executor is responsible for paying the deceased person’s debts out of the assets in their estate among other duties. If there isn’t a will, the court may appoint someone as executor or state law may contain a process in which someone becomes responsible for debt settling.
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State laws vary on how debt payments must be prioritized. Most commonly, funeral expenses are first, followed by estate administration costs and then taxes and medical bills. It’s important to seek guidance about state laws where the deceased person lived.
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In community property states, a spouse may be personally responsible for outstanding debts and, in some states, other laws exist that make a spouse responsible for certain types of debts, such as healthcare expenses.
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People who can inherit debt include the following.
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If you cosigned for someone’s debt and that person dies, you are typically responsible for that debt. This is not usually the case if you’re an authorized user on an account, such as a credit card.
If a debt collector tells you that you were a cosigner, but you believe that you were an authorized user only, the Consumer Financial Protection Bureau notes that you can ask the debt collector for evidence.
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The situation for jointly held debt owners is similar to that for cosigners. If you were on a joint account with someone who passed away, you remain an account holder and will likely be responsible for debt payments.
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If you were in a position where you were legally responsible for handling the debt, such as an estate’s executor and you didn’t follow proper procedures, you might find yourself legally obligated to pay the debt.
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As noted, spouses living in community property states may be required to pay off a deceased spouse’s debts through commonly held assets. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin—and Alaska, if spouses chose this method of property owning.
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The type of debt can play a role in how it’s handled. Loan types include the following.
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Cosigners and joint credit card holders will almost certainly be held responsible for credit card debt. If the deceased person had an individual account, then it would largely depend upon whether they lived in a community property state or not.
In a community property state, credit card debt is considered to be jointly held. In common law property states, the debt shouldn’t typically pass on to someone else.
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First, some context: Mortgages typically have a due on sale clause that means the loan must be paid in full before ownership can change hands; this isn’t applicable, though, if it’s transferred to an heir after a borrower’s death. (As with other kinds of debt, cosigners and co-borrowers would still owe the debt.)
If someone else inherits the house and is not a cosigner or co-borrower, then federal law allows the beneficiary to take over the mortgage—and the mortgage servicer must allow that, even if the person would not typically qualify for that mortgage loan.
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If someone inherits a home where there is a balance on a home equity loan, that debt is typically inherited, as well. If multiple heirs each inherit a share of the home, the situation becomes more complicated and you may want to get legal advice, especially if there is disagreement among heirs about how to proceed.
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In general, the deceased’s estate will pay for medical bills with exceptions, including when there is a cosigner or it’s a community property state. More than half of the states also have something called filial responsibility laws. This means that adult children can be held responsible for supporting their parents who can’t afford to support themselves. This law is rarely enforced but is worth noting.
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Car loans should generally be paid off by the estate. If there aren’t enough funds (and there’s no co-signer and it’s outside of a community property state), then the person inheriting the vehicle can make payments. If that doesn’t happen, then the lender may repossess the vehicle, sell it, and return any excess funds over the outstanding loan amount to the estate.
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Federal student loans will be discharged (considered paid in full) on the date of the borrower’s death. This applies to federal loans taken out by the student as well as parent PLUS loans taken out by a student’s parent.
Private lenders, however, are not legally required to cancel student loans upon death, so the executor should check the agreement to see what terms and conditions are.
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Personal loans also pass onto the estate where they can be paid through the deceased person’s assets. Cosigners/co-borrowers/spouses in a community property state can still be liable for that debt. (Here’s more information about what a personal loan is and the different types of personal loans.)
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In this section, we’re once again using the term “personal loans” to mean a non-business debt, which may or may not be a personal loan as the phrase is typically used.
If the debt is on record, meaning that there is a contract involved, the borrower would typically still owe the money. It would become an asset in the deceased person’s estate and there could still be consequences for the borrower if the debt is not paid.
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You can ask to see a copy of the contract, which would allow you to see the specifics of a loan agreement.
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If a transfer of money occurs with the expectation of repayment, that is considered a loan that should be paid back. If there is a question about whether something was intended as a loan or as a gift, from a legal standpoint, there should be evidence that can be presented to show that it was a loan. If there isn’t enough evidence, the court will often consider it a gift.
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Why get a personal loan? There are plenty of reasons to apply for a personal loan, including to pay legal expenses associated with estate planning. These loans can be unsecured or secured (collateralized loans). If it’s the latter, here’s what can be used as collateral for a personal loan. These installment loans come with a specified interest rate and term with payments calculated so that you pay it off in full during the loan’s term. If you find that you didn’t need as long of a term, here’s information about paying personal loans early.
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In general, when a borrower dies, the situation is handled through the person’s estate, with cosigners, co-borrowers and spouses in community property states having responsibility for most kinds of debts. When a lender dies, the borrower typically still owes the money. Individual situations can become quite complex, so it makes sense to reach out for legal help
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You can compare rates for personal loans at Lantern by SoFi.
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originally appeared on LanternCredit.comand was
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Personal Loan:
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Personal loan offers provided to customers on Lantern do not exceed 35.99% APR. An example of total amount paid on a personal loan of $10,000 for a term of 36 months at a rate of 10% would be equivalent to $11,616.12 over the 36 month life of the loan.
Student Loan Refinance:
SoFi Lending Corp. (“SoFi”) operates this Student Loan Refinance product in cooperation with Even Financial Corp. (“Even”). If you submit a loan inquiry, SoFi will deliver your information to Even, and Even will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lender’s receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Even, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Even’s Licenses and Disclosures, Terms of Service, and Privacy Policy.
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Automobile refinancing loan information presented on this Lantern website is from Caribou. Auto loan refinance information presented on this Lantern site is indicative and subject to you fulfilling the lender’s requirements, including: you must meet the lender’s credit standards, the loan amount must be at least $10,000, and the vehicle is no more than 10 years old with odometer reading of no more than 125,000 miles. Loan rates and terms as presented on this Lantern site are subject to change when you reach the lender and may depend on your creditworthiness. Additional terms and conditions may apply and all terms may vary by your state of residence.
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