Estate planning isn't just for the wealthy—every adult should have a plan in place. Yet, most Americans do not. One of the main reasons for this is the perceived cost of creating an estate plan. Unfortunately, the financial consequences of not having a plan can be much greater than the upfront cost of creating essential documents like a will, power of attorney, and healthcare directive.

We understand that many Americans are facing real financial challenges, which is why having someone else pay for your estate plan can be a smart solution. In most cases, this is perfectly fine. However, there are important considerations to keep in mind when someone else is footing the bill. Estate planning attorneys have strict ethical obligations to their client—the person creating the estate plan—regardless of who is paying for it.

The Cost-of-Living Crisis and Estate Planning

In 2024, only 32% of Americans have a will, according to a survey from Caring.com. This is despite the fact that nearly two-thirds of respondents say having a will is “very important” or “somewhat important.”

So why do estate planning rates remain low? Procrastination and the misconception that estate planning is only for the wealthy are the primary reasons. In fact, 16% of Americans say they don't have an estate plan because it's “too expensive.”

With approximately one-third of Americans living paycheck to paycheck, the idea of spending money on an estate plan can feel out of reach. In fact, 37% of Americans say they couldn't cover an unexpected $400 expense, and 21% report having no savings at all.

When Someone Else Pays for Your Estate Plan: Setting Expectations

The perceived cost of estate planning is often a bigger barrier than the actual cost. Having an estate plan is far better than not having one, and in some cases, a family member or loved one may offer to pay for it. This can be a great way to ensure your legacy is protected without the financial burden.

However, it's important to set clear expectations from the start. While estate planning is often described as a gift to yourself and your family, when someone else pays for it, there are professional and ethical guidelines that must be followed.

What to Expect from the Attorney

Estate planning attorneys must adhere to strict professional codes of conduct, which include working in the best interest of the client—the person creating the estate plan. The person paying for the estate plan, while generous, is not the client. Our duties to clients include maintaining confidentiality, practicing with competence, and avoiding conflicts of interest.

If the person paying for the plan stands to benefit from the estate (i.e., they are a beneficiary), it's essential to avoid any conflict of interest. Additionally, the presence of the payor during attorney-client discussions without proper waivers could jeopardize confidentiality.

The Planning Process

The person paying for the estate plan is welcome to make the payment but does not need to be involved in the planning process. However, if they do attend meetings, the client must sign a waiver of attorney-client privilege, and the payor must sign a document acknowledging they are not the client.

Once the process begins, you will work with your attorney to decide on key elements, such as who will inherit your assets, who will manage your affairs after you die, and who will make decisions for you if you are incapacitated.

Put Your Wishes in Writing

If someone offers to pay for your estate plan, it's a generous gesture worth accepting. Just be sure that all parties understand the ethical guidelines. Remember, the attorney represents the person creating the estate plan—not the person paying for it.

No matter who covers the cost, we are here to ensure that your wishes are put in writing and carried out. Updating an existing estate plan is usually much more affordable than creating one from scratch, so future changes can be made as needed. Call us today to get started on your estate plan or to update an existing one.