Demystifying the Cost of TurboTax Will Builder: A Comprehensive Guide to Estate Planning
Have you ever wondered about creating a will but felt overwhelmed by the perceived complexity and cost? You're not alone! Many people delay this crucial step in financial planning, often due to misconceptions about legal fees or the process itself. Today, we're going to dive deep into a popular option: the TurboTax Will Builder. We'll break down how much it costs, what it offers, and how to navigate the process to secure your legacy.
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| How Much Is Turbotax Will Builder |
Step 1: Are You Ready to Take Control of Your Legacy?
Before we get into the nitty-gritty of pricing, let's start with a crucial question: Are you ready to take control of your financial future and ensure your loved ones are protected? If the answer is yes, then understanding your options for creating a will is your first empowered step. A will is more than just a piece of paper; it's a testament to your wishes, providing peace of mind for you and clarity for your family during a difficult time.
Step 2: Understanding the TurboTax Will Builder Offering
It's important to clarify that "TurboTax Will Builder" isn't a standalone product directly from TurboTax's main tax software. Instead, it's typically offered through a partnership with ARAG, a legal insurance and services provider. When you see "Will Builder by ARAG® in TurboTax," this is what they're referring to.
Sub-heading: What Does the TurboTax Will Builder Actually Provide?
This service aims to simplify the creation of essential estate planning documents. It offers:
Standard Will: This document outlines how you want your assets distributed and typically designates an executor to manage your estate. It's the cornerstone of most estate plans.
Living Will (Advance Directive): This specifies your wishes regarding medical treatment if you become incapacitated and unable to make decisions for yourself. It's about your healthcare, not your assets.
Durable Power of Attorney: This document appoints someone to handle your financial and/or medical decisions if you're unable to do so. It can be a combined document or separate for medical and financial.
Power of Attorney for Health Care: A specific type of power of attorney focused solely on medical decisions.
HIPAA Authorization: This allows designated individuals to access your protected health information, crucial for those making medical decisions on your behalf.
Authorization for Minor's Medical Treatment: Ensures a child receives prompt medical attention when under the care of another, without needing immediate parental contact.
Sub-heading: Key Features and Benefits
The Will Builder provides a guided, step-by-step process with easy-to-follow questions. You get:
State-Specific Templates: The documents are developed by attorneys and tailored to your state's laws, which is vital for legal validity.
Unlimited Access and Revisions: You can create, edit, and print an unlimited number of copies for yourself and immediate family members (like parents and grandparents) while you have access to the feature.
Guidance on Notary Involvement: The service often notifies you when a notary is required for your documents to be legally binding.
Additional Resources: Access to guidebooks, tips, and videos to help you navigate common legal and financial issues related to estate planning.
Step 3: The Crucial Question – How Much Does TurboTax Will Builder Cost?
This is where many users have questions, and the answer isn't always immediately obvious on the main TurboTax website.
QuickTip: A quick skim can reveal the main idea fast.
Sub-heading: The Typical Price Point
Based on user reports and information from TurboTax's support community, the TurboTax Will Builder (by ARAG®) typically costs around $39.00. This is often an add-on purchase, meaning it's not automatically included with your standard TurboTax tax preparation software purchase.
Sub-heading: Is it Included with Any TurboTax Edition?
No, the Will Builder by ARAG® is generally not included for free with any standard TurboTax tax filing edition. While TurboTax offers various tiers for tax preparation (Free Edition, Deluxe, Premium, Self-Employed, etc.), the will builder is a separate legal service you opt to purchase.
Sub-heading: When Do You Purchase It?
You can typically purchase access to the Will Builder during or even after you file your taxes with TurboTax. Once purchased, you usually have access to the service for at least one year.
Sub-heading: What About Other TurboTax Products and Their Costs?
It's important not to confuse the Will Builder cost with the cost of TurboTax's tax filing software. Here's a general idea of TurboTax's tax software pricing, which is separate from the Will Builder:
TurboTax Free Edition: For simple tax returns (Form 1040, limited credits).
TurboTax Deluxe: For maximizing deductions and credits. Often around $79 for federal, plus state fees (around $64 per state).
TurboTax Premium: For investors, freelancers, and business owners. Often around $139 for federal, plus state fees (around $64 per state).
TurboTax Self-Employed: For self-employed individuals and single-member LLCs. Can be around $129 for federal, plus state fees.
TurboTax Business (Desktop): For multi-member LLCs, partnerships, S-corps, etc. This is a desktop-only software and can cost around $180 (includes federal), plus state fees (around $60 per state).
TurboTax Live Assisted/Full Service: These are upgrades that provide live expert help or full tax preparation by a CPA, significantly increasing the cost (can range from $79 to $389+ for federal, plus state fees).
Remember: These tax filing costs are separate from the $39 for the Will Builder.
Step 4: Comparing TurboTax Will Builder to Other Options
While $39 might seem like a small investment for a will, it's worth considering how it stacks up against other options.
Sub-heading: Online Will Services (e.g., LegalZoom, Rocket Lawyer)
Many dedicated online will services offer various packages.
Tip: Read once for gist, twice for details.
Pros: Often more comprehensive estate planning documents (trusts, powers of attorney, etc.) as part of their higher-tier plans. Some offer legal advice or attorney review.
Cons: Can be more expensive than the TurboTax add-on, with monthly subscriptions or higher one-time fees. Basic wills might be free, but more advanced features come at a premium. For example, some services charge anywhere from $80-$200 for a basic will package, with more extensive plans going into the hundreds or even thousands for attorney consultations.
Sub-heading: Attorney-Drafted Wills
Hiring an attorney to draft your will ensures a highly personalized document tailored to your unique situation.
Pros: Expert legal advice, complex estate planning (trusts, special needs planning, tax minimization strategies), and assurance of legal validity.
Cons: Significantly more expensive. A simple will can cost anywhere from $300 to $1,000+, and complex estate plans can run into several thousands of dollars.
Sub-heading: Free Online Templates or DIY
You can find free will templates online or simply try to draft one yourself.
Pros: No direct cost.
Cons: Extremely risky. These often lack state-specific compliance, can have critical omissions, and may not hold up in court. They offer no legal guidance and leave you vulnerable to errors.
Step 5: Is the TurboTax Will Builder Right for You?
The TurboTax Will Builder is generally a good option for individuals or couples with relatively simple financial and family situations.
Sub-heading: Who It's Best For:
Individuals with straightforward assets (e.g., bank accounts, a primary residence).
Those with clear beneficiaries and no complex inheritance issues.
Individuals seeking a cost-effective way to create basic, legally sound documents.
People comfortable with a guided, interview-style process for legal documents.
Sub-heading: When You Might Need More:
Large or Complex Estates: If you have significant assets, multiple properties, or intricate investments.
Blended Families: If you have children from previous marriages, step-children, or other complex family dynamics.
Special Needs Beneficiaries: If you need to establish a special needs trust for a loved one.
Business Ownership: If you own a business and need to plan for its succession.
Concerns About Estate Taxes: If your estate is large enough to be subject to federal or state estate taxes.
Potential for Disputes: If you anticipate potential challenges to your will.
International Assets or Residences: Dealing with assets across different jurisdictions.
In these more complex scenarios, it is highly recommended to consult with an estate planning attorney to ensure your wishes are legally enforceable and your estate is handled effectively.
Step 6: Step-by-Step Guide to Using TurboTax Will Builder
If you decide the TurboTax Will Builder is a good fit for your needs, here's a general step-by-step guide:
QuickTip: Reading twice makes retention stronger.
Sub-heading: Getting Started and Purchasing Access
Log in to your TurboTax Account: If you're a returning user, log in. If not, you may need to create an Intuit account.
Navigate to the Will Builder Option: This might be found in a "Tools," "Other Services," or "Legal" section within your TurboTax interface, or you might be prompted about it during the tax filing process. Look for "Will Builder by ARAG®."
Purchase the Service: As mentioned, it's typically an add-on for around $39. You'll likely pay with a credit/debit card.
Access the ARAG Platform: Once purchased, you'll be redirected or provided a link to the ARAG Will Builder platform.
Sub-heading: The Guided Interview Process
Select Document Type: Choose the type of document you want to create first, likely starting with a "Standard Will."
Answer Step-by-Step Questions: The platform will guide you through a series of questions. Be prepared to provide the following information:
Your Personal Information: Full legal name, address, marital status, children's names and birthdates.
Executor Designation: Who will manage your estate (personal representative). Name at least one primary and one alternate.
Beneficiaries: Who will inherit your assets and what specific assets they will receive. Be as clear as possible.
Guardians for Minor Children: If you have minor children, who will be their legal guardian if something happens to both parents.
Specific Bequests: Any specific items (e.g., jewelry, family heirlooms) you want to leave to particular individuals.
Residual Estate: How you want any remaining assets to be distributed.
Healthcare Wishes (for Living Will): Your preferences for medical treatment, life support, etc.
Power of Attorney Designations: Who you appoint to make financial and/or medical decisions on your behalf, and the scope of their authority.
Review and Edit: The system will generate a draft of your document based on your answers. Carefully review every section for accuracy and completeness. Make any necessary edits.
Print Your Documents: Once satisfied, you can print your documents. Remember, you have unlimited printing access while your subscription is active.
Sub-heading: Finalizing Your Will – The Critical Steps
Sign Your Will: This is perhaps the most critical step. Your will is not legally binding until it is properly signed.
Witness Requirements: Your will must be witnessed according to your state's laws. This usually means two or three disinterested parties (not beneficiaries in the will) who are present when you sign and who also sign the will themselves.
Notarization: While not always required for a standard will to be valid, notarization can sometimes make the probate process smoother, especially for self-proving affidavits. The Will Builder will likely indicate if notarization is recommended or required in your state.
Store Your Will Safely: Keep the original signed will in a secure, accessible place. Inform your executor and a trusted family member where it is located. Do NOT put it in a safe deposit box that can't be accessed without a court order after your death.
Review Periodically: Life changes – marriages, divorces, births, deaths, new assets, etc. – necessitate reviewing and potentially updating your will every few years or after significant life events.
Frequently Asked Questions (FAQs) about TurboTax Will Builder
Here are 10 common questions related to TurboTax Will Builder, starting with "How to":
How to access the Will Builder by ARAG® in TurboTax?
You typically access it through your TurboTax account online. After logging in, look for sections related to "Other Services," "Legal," or "Will Builder." You might also be prompted about it during or after your tax filing process.
How to purchase the TurboTax Will Builder?
The TurboTax Will Builder is usually an add-on purchase. Once you navigate to the Will Builder section within your TurboTax account, you will be prompted to pay the fee (around $39) to gain access to the ARAG platform.
How to know if the TurboTax Will Builder is right for me?
It's generally suitable for individuals with simple financial situations and straightforward wishes. If you have a complex estate, blended family, special needs beneficiaries, or significant assets, consulting an attorney is recommended.
QuickTip: Repetition reinforces learning.
How to ensure my will created with TurboTax Will Builder is legally valid?
The Will Builder provides state-specific templates, but you must follow your state's signing and witnessing requirements precisely. This usually involves signing in front of two disinterested witnesses who also sign the document. Some states may also require notarization.
How to update my will after using TurboTax Will Builder?
Since you typically have access to the service for at least a year after purchase, you can log back into the ARAG platform through your TurboTax account and make revisions. After making changes, you must print, sign, and have the updated will witnessed again according to your state's laws.
How to get help if I have questions while using the TurboTax Will Builder?
The ARAG platform often provides guidebooks, tips, and videos to assist you. For specific legal advice, however, you would typically need to consult an attorney, as the Will Builder is a document generation tool, not a legal advisory service.
How to store my completed will safely?
Keep the original, signed, and witnessed will in a secure yet accessible location, such as a fireproof safe at home or with your attorney. Avoid storing it in a safe deposit box that requires a court order to open after your death. Inform your executor and a trusted family member of its location.
How to know if I need more than a simple will from TurboTax Will Builder?
You likely need more if you have a net worth that approaches or exceeds state or federal estate tax thresholds, own a business, have beneficiaries with special needs, wish to set up trusts, or have complex family dynamics (e.g., blended families).
How to compare TurboTax Will Builder with other online will services?
Compare features offered (e.g., living trusts, power of attorney documents beyond basic), pricing models (one-time fee vs. subscription), access to legal advice, and customer reviews. Dedicated online will services may offer more comprehensive estate planning solutions.
How to know if my previous year's TurboTax purchase includes the Will Builder?
The Will Builder is typically an optional add-on purchase and is not automatically included with any TurboTax tax filing product. You would have had to specifically buy access to it. Check your purchase history within your TurboTax account for details.
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