Trying to go it alone practicing law rarely yields positive results.  In fact, amateur estate planning wreaks havoc.  If you don’t have an up-to-date, comprehensive estate plan, consult with a qualified estate planning attorney.  If you don’t, the following may be the result.

• Jane and Michael are do-it-yourselfers; they do their own plumbing, taxes, and estate planning.  They own all of their assets jointly and when Michael dies in a fishing accident, Jane inherits all of the assets outright.  After a period of mourning, Jane remarries and re-titles in joint names with her new husband, Frank.  Jane dies of cancer and Frank inherits all of the assets that were formerly Jane and Michael’s; their children get nothing.  Consultation with a qualified estate planning attorney could have prevented the disinheritance of Jane and Michael’s children. 

• Rheta fills out legal forms she downloaded from the internet.  She names her brother, Johnny, in trusted helper positions and signs the documents.  When Rheta is seriously injured in a car accident, she is unable to manage her assets; Johnny is suffering from severe depression stemming from a divorce, and he is unable to serve.  There are no contingent trusted helpers named, so a conservatorship process is required.  This drains Rheta’s bank account and a stranger, a local attorney, is named as her conservator. 

• Sally downloads estate planning documents from LegalZoom for her Uncle Robert.  She has Robert sign the documents and proceeds to try to fund his trust, but no financial institutions will transfer assets into the trust because they are unsure of its validity.  Robert dies and the trust is unfunded; therefore, probate is guaranteed; probate is very expensive in California.  In addition, Robert’s will was not executed properly and was, therefore, invalid.  His estate plan failed totally.

Practicing law and, specifically, estate planning is not an amateur sport.  Get a solid, comprehensive, and legally valid in place by consulting with a qualified estate planning attorney.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

We all need to keep costs down and being concerned about estate planning legal fees is completely normal.  Everyone is concerned about fees; you are not alone.  Here are 5 pieces of insider information that will likely make you feel more comfortable about estate planning fees.

• Consider Overall Costs:  In the long run, getting good legal advice will almost always cost less than do-it-yourself kits and downloadable forms.  This is because most home-made estate plans don’t work.  What will it cost if your plan doesn’t work, your children are accidently disinherited, or all of your spouse’s inheritance is taken in a lawsuit?

• All Legal Fees are Disclosed Upfront:  All legal fees will be disclosed upfront, in writing.

• Estate Planning Fees are Often Fixed:  Most estate planning fees are fixed, not hourly.  This means that you know exactly what you’ll pay and there is no monthly pinprick of hourly billing.  In a fixed fee relationship, you can call or email your estate planning attorney and not worry about receiving a $75 bill.

• Tax Related Fees are Tax Deductible:  Any legal fees associated with saving taxes or tax planning are 100% tax deductible.  Your attorney will give you a receipt, indicating applicable tax deductibility.

• Chat Upfront with Your Attorney:  Don’t be shy about discussing fees; always be upfront with your attorney.  He or she may be able to accommodate your financial limits by offering credit card billing, installment payments, or bundled legal services.

“Unbundled legal services” means that your estate planning attorney provides legal advice and estate planning documents on an individual topic.  For example, perhaps you execute powers of attorney to get your estate planning started.  You can come back the next month, or so, to execute a will.

While a comprehensive estate plan is best and what your estate planning attorney wants to provide, it’s better to have something in place and build over time than to have nothing in place at all.

If you’re concerned about estate planning fees, chat with your estate planning attorney.  You may be happily surprised and find a fee plan that works for you.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

In part one of this article, LegalZoom Sued Over Invalid Will, we discussed that with the help of his niece, Katherine Webster, Anthony J. Ferrantino, signed a will and revocable living trust downloaded from LegalZoom.  The will was not executed properly; and, therefore, was not legally valid; and, financial institutions wouldn’t recognize the legal validity of the trust so they refused to transfer Ferrantino’s assets into the trust.  The trust remained unfunded at his death, costing the estate thousands of dollars.

“LegalZoom preys on people when they’re at their most vulnerable, when they are of advanced age or poor health and need a will or a living trust,” adds San Francisco elder abuse attorney and lead counsel in this case, Kathryn Stebner.

Webster, Ferrantino’s executor, is suing LegalZoom in a class action suit:

“Nowhere in the [company's] manual do defendants explain that using LegalZoom is not the same as using an attorney and that its documents are only ‘customized’ to the extent that the LegalZoom computer program inputs your name and identifying information, but not tailored to your specific circumstances,” the lawsuit states;“the customer service representatives are not lawyers and cannot by law provide legal advice.”

LegalZoom advertises that you don’t need an attorney because its documents are legally binding and reliable.  However, Ferrantino’s documents were neither legally binding nor reliable, resulting costs of thousands of dollars.

“LegalZoom’s business is based on nurturing the false sense of security that people do not need to hire a traditional attorney,” says San Francisco attorney Robert Arns, one of Webster’s attorneys, who filed the suit.

The next time you see those LegalZoom commercials, think of Anthony J. Ferrantino and the 3,000 other people who bought legal documents such as a will, trust, or power of attorney.  If you want your estate plan to work, consult with a qualified estate planning attorney.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

You’ve likely heard of LegalZoom, offering to sell a will, trust, or other legal documents; perhaps, you’ve seen their advertisements on television.  LegalZoom is the big name online seller of legal forms, including estate planning documents.   They have been sued again and are currently the defendant in a class action (i.e. large group of plaintiffs) in California, accused of deceptive business practices and practicing law without a license.

Facts of the Case Main Case

Katherine Webster helped her uncle, Anthony J. Ferrantino, execute a living trust and will provided by LegalZoom, thinking that these documents would be legally valid because LegalZoom advertised as them as such.  Furthermore, Webster thought if there were any difficulties with the documents, LegalZoom would resolve them through their satisfaction guaranteed promise.

Ferrantino signed the LegalZoom documents, but these documents were not accepted by financial institutions as legally valid; so, legal institutions refused to transfer his assets into his trust.  Webster sought help from LegalZoom when their legal documents were not honored, to no avail.  Ferrantino’s trust remained unfunded at his death in 2007.

At Ferrantino’s death, Webster hired an estate planning attorney who reviewed the documents, to find that the will had not been properly witnessed and was therefore legally invalid.  The attorney petitioned the court to allow post-mortem trust funding; then, had to convince financial institutions to transfer the assets to the trust.  This cost the estate thousands of dollars.

Webster filed suit, on May 27, 2010, in the Los Angeles Superior Court; she filed a class action suit, representing about 3,000 Californians who had purchased estate planning documents from LegalZoom.

Webster charged that she and other LegalZoom customers relied on misleading statements that LegalZoom:

• Carefully reviews customer documents;
• Guarantees 100% service satisfaction;
• Service and documents are of the same quality as those prepared by an attorney; and,
• Documents are effective and dependable.

Please continue reading to learn more at part 2 of 2, LegalZoom Sued Over Invalid Will.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Some estate planning documents are effective as soon as you sign them; some are effective if you are incapacitated; and, some are only effective if you’re dead.  It can be confusing for you and your trusted helpers to know what’s what.  To provide some guidance, we’ve listed basic estate planning documents and described when they become effective.  All documents must be executed properly under California state law to be effective, any time.

• Will

Your will is only effective if you’re dead; so, your will becomes effective immediately upon your death.

• Health Care Power of Attorney

Your health care power of attorney is only valid if you cannot provide informed consent for medical treatment.  In other words, it’s only effective if you’re incapacitated.

• General Durable Power of Attorney/Financial Power of Attorney

These are two names for the same document; your financial power of attorney may be effective immediately upon signing; or, it may only be effective upon your disability if it is a “springing” power of attorney, meaning that it “springs” to life when you become incapacitated.

• Revocable Living Trust

Legally, your revocable living trust is effective immediately upon signing, with certain provisions such as the authority for disability and settlement trustees to act upon the occurrence of a specific event (i.e. your incapacity or death.)

In practicality, you must transfer assets into your trust for your trustees, including yourself, to have any power.

• Living Will

Your living will is only effective if you’re at the very end of life and there’s no coming back, meaning that you are in an irreversible coma or persistent vegetative state.

• HIPAA Release

Your HIPAA release is effective immediately upon signing.

• Organ Donation Authorization

Your organ donation authorization is only effective if you’re dead.

Consult with a qualified estate planning attorney if you have any questions or concerns about the effectiveness of your estate planning documents.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

You must sign!!!  If you go to the effort of consulting with an estate planning attorney, thinking about your goals, making decisions, and designing an estate plan, keep your appointment  to review and sign your documents.  If you don’t sign your estate planning documents, they are not effective and, legally, it’s as if you don’t have an estate plan at all.

Document Review

Your signing meeting is not just a “sign here; sign there.”  It’s an educational meeting.

Your estate planning documents will be reviewed so that you have a basic understanding of how they work.  This is important for your plan to work, your peace of mind, and so you can explain your plan to your trusted helpers (i.e. executor, trustee, guardians of minor children, and power of attorney agents.)

Plus, you get to ask all of the questions you want during your signing meeting, at no additional fee.

Only Executed Documents have Legal Authority

Only those documents that are fully executed under California state law have legal authority.  If your documents are just sitting in your lawyer’s office, unsigned, they have no power; and, you and your family remain unprotected.

Promises to Change or Create Estate Planning Documents Have No Authority

Updating your estate plan is incredibly essential.  When life changes your estate plan must also change.

This means that if you are in a new relationship and you want that individual to be a part of your estate plan either as a beneficiary or as a trusted helper, you absolutely must put it in writing.

In general, it is wise to update your estate plan every three to five years to catch changes in the law, your life, and your estate planning attorney’s experience; but, if you have major life changes, update immediately.  Examples of life changes that mandate an update are:  new relationship, dissolution of relationship, divorce, marriage, new child, new business, and move to a new state.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

If you’re like most people, you’ve seen Legal Zoom’s advertisements; you may have even seen estate planning document forms online or in your big box office supply store.  Are you intrigued by opportunities for cheap estate planning documents?  Most people are.  After all, everyone wants to save money and aren’t all documents the same?

It’s normal to have these thoughts; but, no, all documents are not the same and you will likely end up spending more money in the end if you use form documents that don’t work.  Estate planning is based on legal counseling.  It’s much more than simply filling in the blanks on a standard form.

For just a moment, compare an estate planning attorney to your eye doctor.  Both professionals need to ask you a multitude of questions to determine what prescription is best for you.  While the eye doctor says, “Is screen 2 more clear, or screen 3,” your estate planning attorney will say, “Do like “it” (whatever estate planning issue is being discussed) this way, or that way?”

Each professional provides individualized analysis to make sure their services are a good fit for you and your family.

For example, your estate planning attorney may discuss some of these choices with you:

• The option to include remarriage protections and require a prenuptial agreement to protect your assets
• The option to protect beneficiaries who develop a drug, alcohol, or gambling problem
• The option to include life-long trust protections or give inheritances outright
• The option to include incentives for children or grandchildren to go to college, run the family foundation, or volunteer for community service
• The option to have someone other than your children’s guardian manage the assets you leave for them
• The option to leave an ethical will

Estate planning necessarily includes much legal counseling, consideration, and decision-making; it’s not filling in the blanks on legal forms which are a one-size fits none.  Be sure to consult with a qualified estate planning attorney to develop a customized, good-fitting estate plan for you.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

If you’re like most people, you’ve heard of some of these estate planning terms, but not others.  If you’ve heard of them, you might not be clear on what they mean.  We’ve created this mini list of 5 estate planning terms you need to know to help you to feel more comfortable with estate planning.

• Intestate

If you die without a will, you die “intestate” and intestacy laws determine which heirs inherit your assets.

• Probate

If you die with assets in your individual name, probate is guaranteed.  Probate is the court supervised process of validating the will and settling your estate.  It includes valuing your assets, paying creditors, filing appropriate tax returns, and distributing assets to beneficiaries.

• Trust

A trust is a contract, an agreement.  It’s really an instruction book that explains to your successor trustees exactly what they should do, how they should do it, and when they should do it.

• MediCal

MediCal is a federal health care program, administered by the state of California.  MediCal provides health care insurance coverage for those living in poverty.  MediCal is significant to elder law and estate planning because it is often used to pay for long term care such as nursing home care.

• Conservatorship

If you become incapacitated and can’t provide informed consent for medical decisions and/or can’t manage your daily business affairs, you need someone with legal authority to act on your behalf.  If you have a health care power of attorney, financial power of attorney, and revocable living trust, you’re covered.  Your trusted helpers have authority to act on your behalf.

If you don’t have these important documents, your loved ones will have to petition the court for a conservatorship to have authority granted.  This is a loss of control as the court takes charge and it’s an expense, stressful, and time consuming process that can easily be avoided with comprehensive estate planning.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

If you’ve attained the age of 18, this estate planning preparation test applies to you.  Why?  Because each and every adult needs an estate plan to protect himself or herself as well as the family.  If you don’t create your own estate plan, the courts and state law will create one for you; and, it likely won’t be what you’ve chosen yourself.

• I have a will, naming guardians and contingent guardians for my minor children.

Yes    No    Don’t Know

• I have stand-by guardianship authorization for my minor children.

Yes    No    Don’t Know

• I have a valid and up-to-date health care power of attorney so my chosen loved ones can make emergency medical care decisions for me if need be.

Yes    No    Don’t Know

• I have a valid HIPAA release so that my medical professionals are authorized to communicate with my health care agents.

Yes    No    Don’t Know

• I have a valid living will so that I am not hooked up to machines if I am in an irreversible coma or persistent vegetative state.

Yes    No    Don’t Know

• I have a valid and up-to-date financial power of attorney so my chosen loved ones can make emergency financial decisions and pay my bills for me if need be.

Yes    No    Don’t Know

• My revocable living trust is fully funded so probate will be avoided.

Yes    No    Don’t Know

• I have the appropriate amount of life insurance so my income will be replaced and last bills will be paid when I die.

Yes    No    Don’t Know

• I have planned to avoid unintentionally disinheriting my children.

Yes    No    Don’t Know

• I have protected my spouse’s and children’s inheritances from predators and creditors.

Yes    No    Don’t Know

• My family knows my wishes for my funeral and burial.

Yes    No    Don’t Know

Unless you can answer “yes” unequivocally to each and every statement, you likely need to have your estate plan updated.  Consult with a qualified estate planning attorney for a review and update.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

LegalZoom is being sued in federal court by approximately 15,000 Missouri residents for dispensing legal advice without a law license.  When you purchase a form from LegalZoom or any other form services, you are not getting the benefit of working with an estate planning attorney.  Only licensed attorneys are legally able to provide legal advice; this law was created to protect the consumer.  While many laypersons think creating estate planning documents is simple and that they’re just standard forms, they are not.

Your Estate Plan May Not Work

Trying to save money is normal, but is short sighted when it comes to legal services and estate planning.  It is in your best interest to have your estate plan designed and drafted by an estate planning attorney, who will also supervise execution to ensure they are legally valid.

If your estate plan doesn’t work because you tried to do it yourself, how much does a plan, that doesn’t work, actually cost you and your family? 

For example, how much will your family lose if your spouse’s inheritance is taken by a creditor in a car accident law suit?  How much will your family lose if your children are raised by someone not of your choosing?  How much will your family lose if your daughter’s divorcing spouse attaches her inheritance?

LegalZoom Offers No Individualized Counseling or Attorney Review

Your family, your financial situation, and your goals are not the same as everyone else’s; therefore, it is inappropriate to use the identical estate planning documents as everyone else, who purchases documents from LegalZoom.  Of course, all estate plans have similarities, but they are not the same.

Who Will You and Your Family Ask for Help?

When you have estate planning questions and need help or when you are incapacitated or die, who will your family call for help?  You can’t call LegalZoom; you can call your qualified estate planning attorney.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.