Cheap vs. Free Online Wills: Why You Get What You Pay For
Securing your family’s future is a foundational responsibility, yet many Australians delay estate planning due to perceived costs. This has led to a surge in digital solutions, creating a debate: Cheap vs. Free Online Wills. While the appeal of a “zero-dollar” price tag is strong, the legal reality in Australia is complex.
When you choose an online will provider, you aren’t just buying a document; you are purchasing peace of mind. However, there is a significant divide between a basic template and a legally vetted platform. Understanding why you get what you pay for is essential to ensure your assets are distributed according to your wishes without leaving a mountain of legal fees for your beneficiaries.
Defining the Landscape: Free vs. Paid Digital Wills
In the Australian market, “Free Wills” are often offered by charities or as “freemium” hooks by tech companies. “Cheap” or paid online wills usually involve a one-off fee or subscription that provides a more robust, guided experience.
What is a Free Online Will?
A free online will is typically a standardized template. You fill in the blanks, download a PDF, and sign it. These are often “one-size-fits-all” solutions that do not account for complex family structures, such as blended families or self-managed super funds (SMSFs).
What is a Paid Online Will?
Paid platforms invest in legal logic. They use “if-then” branching to ensure that if you have a specific asset or family dynamic, the document adjusts to remain legally compliant with the Succession Act of your specific state or territory.
Why the Price Tag Matters: The Hidden Costs of “Free”
The old adage “there’s no such thing as a free lunch” applies heavily to estate planning. While a free will costs nothing today, it may cost your estate tens of thousands of dollars in the future.
1. Lack of Legal Logic and Validation
Free templates are static. They rarely check for “invalidating” entries. For example, if you accidentally leave a gift to a witness of the will, that gift fails under Australian law. Paid platforms often have built-in guardrails to flag these errors before you finalize the document.
2. Data Privacy and Monetization
If a service is free, you are often the product. Some free will providers earn revenue by:
- Selling your data to insurance brokers.
- Aggressively marketing funeral plans.
- Requiring you to name them as executors (which allows them to charge high commissions later).
3. Limited Customisation
Life isn’t a template. Free versions often struggle with:
- Blended Families: Ensuring children from previous marriages aren’t disinherited.
- Specific Gifts: Detailing sentimental items versus high-value assets.
- Residual Estates: Clearly defining who gets “everything else” after specific debts are paid.
Comparative Analysis: Cheap vs. Free Online Wills
| Feature | Free Online Wills | Paid Online Wills (Cheap) |
| Legal Review | Rarely updated for state laws. | Frequently updated by legal teams. |
| Guidance | Minimal; DIY approach. | Step-by-step prompts and tooltips. |
| Security | Basic data encryption. | Bank-level security and privacy. |
| Complex Assets | Not supported (e.g., Trusts, SMSFs). | Often includes basic trust provisions. |
| Customer Support | Usually non-existent. | Email or live chat assistance. |
The Legal Framework in Australia
Under the various state laws—such as the Succession Act 2006 (NSW) or the Administration and Probate Act 1958 (VIC)—a will must meet strict criteria to be considered “valid.”
If a free will is found to be “informal” or poorly drafted, your executors may have to apply to the Supreme Court for a grant of probate for an informal will. The legal costs for this process can exceed $10,000, effectively wiping out the “savings” you made by choosing a free option.
The Role of Testamentary Capacity
Paid platforms often include a “Capacity Statement” or checklist. This helps prove that you were of sound mind when the will was created—a common point of contention in Australian estate litigation.
Common Mistakes When Using Free Online Wills
Even with the best intentions, DIY estate planning can go wrong. Here are the most frequent pitfalls:
- Incorrect Execution: Failing to have two witnesses present at the same time.
- Vague Language: Using phrases like “I want my friends to have my money” instead of defining specific percentages and names.
- Forgetting the Superannuation: In Australia, Super is not automatically part of your estate. Free wills often fail to explain the need for a Binding Death Benefit Nomination (BDBN).
- The “Lapse” Rule: Not accounting for what happens if a beneficiary dies before you do.
Step-by-Step: How to Choose the Right Online Will Provider
If you decide to use an online service rather than a bespoke solicitor-drafted will, follow this framework to ensure quality:
- Check the Jurisdiction: Ensure the provider specifically mentions Australian State and Territory laws.
- Look for “Attorney-Backed”: Is the software designed by actual Australian estate lawyers?
- Review the Update Policy: Will they notify you if laws change? Do they allow free updates for a set period?
- Evaluate the UX: A good paid platform will ask “probing” questions about your assets that you might not have thought of yourself.
- Check for “Executor” Clauses: Ensure the platform doesn’t force you to appoint their “partner” as a professional executor for a fee.
Best Practices for a Robust Online Will
To maximize the value of a paid online will, keep these tips in mind:
- Be Specific: Instead of “my car,” use “the motor vehicle I own at the time of my death.”
- Appoint Backups: Always name at least one backup executor and one backup beneficiary.
- Keep it Physical: In Australia, a digital copy is not a legal will. You must print it and sign it with a blue or black pen.
- Review Every 3 Years: Or after major life events (marriage, divorce, birth of a child).
Frequently Asked Questions (FAQ)
Are free online wills legally binding in Australia?
Yes, provided they meet the formal requirements of the relevant state’s Succession Act (signed by the testator and two witnesses). However, their simplicity often leads to errors that make them easy to contest in court.
Why should I pay for a will if I can get one for free?
Paying for a will generally buys you “legal logic.” This means the document is tailored to your specific answers, reducing the risk of contradictions or omissions that lead to expensive legal battles for your family.
Can I include my Superannuation in an online will?
Technically, no. Superannuation is held in a trust. While a good paid will provider will remind you to update your Binding Death Benefit Nomination with your super fund, the will itself does not usually control these funds unless they are paid into your estate.
What is the average cost of a “cheap” online will?
In Australia, a high-quality, legally-backed online will typically ranges from $80 to $200 for an individual, and slightly more for “couples” or “mirror” wills.
Does a cheap online will cover Power of Attorney?
Usually, these are separate documents. Many paid providers offer bundles that include a Will, an Enduring Power of Attorney, and an Enduring Guardianship document for a discounted price.
Conclusion: The Real Value of Your Estate Plan
When comparing cheap vs. free online wills, the conclusion is clear: you get what you pay for in terms of risk mitigation and legal precision. A free will is a gamble—it may work for the simplest of circumstances, but it lacks the safeguards necessary for the average Australian household.
Investing a small amount in a reputable, paid online will platform ensures that your document is compliant with local laws, protects your beneficiaries from unnecessary litigation, and provides a clear roadmap for your executors. Don’t let a $0 price tag result in a $50,000 legal bill for your loved ones.