More People Are ‘Going It Alone’, To Their Detriment

“It is not who is right, but what is right, that is important.”

- Thomas Henry Huxley

With technology being what it is, all kinds of firms are trying to “compete” in the online space, and with all of the estate tax changes that have gone down in 2011, they are trying to make the case that it’s easier than ever to make estate plans on your own.

However, this would be a big mistake.

Yes, it can be seen as self-serving to make this case, but it’s important that my readers know the truth about this — as well as a few other mistakes we regularly see.

So, to wit, I’m beginning a short series on clearing the air regarding these and other all-too-common mistakes which we see on a regular basis.

Rowel Manasan’s

“Straight Talk” Personal Strategy

The Truth About Online Legal Options, etc.

Why do so many families end up with a big fat mess on their hands in dealing with their estate when there is a change in circumstances? Well, here’s two reasons to start…

1) Going it alone with “cheap” online options

Did you know that many lawyers like to joke to one another about how good those online legal programs (LegalZoom®, Pre-Paid Legal®, etc.) are for our business? Why would that be?  First, because they are NOT as “easy to use” as claimed, and secondly…they actually cost you an arm and a leg in the long run!

You might think they seem like an inexpensive and safe option. But I’m not referring to the money for the service itself.

Using those programs can end up leaving thousands (or much more) of YOUR assets in the coffers of Uncle Sam, or in the probate process…even if you follow all of their instructions to a tee. I see it all the time–frustrated clients standing upon a poorly-constructed legal foundation, not just for their assets, but for the disposition of other important wishes (like the taking care of children).

The security you get is actually false security.

Even worse…

Choosing the wrong asset allocation method can end up leaving your estate owing more to the IRS than if you had done nothing at all.

Now, it’s not my intention to scare you, but again–I’ve seen it more than I’d like. Frustrated families coming to see me during a period of great stress, and my staff and I having to attempt to “undo” poorly-crafted plans created by well-intentioned families (or even other lawyers) which ends up costing everybody far more than they’d like.

So, I hope you are with me:  Choosing a well-trained and caring professional, who will put YOUR interests first–rather than just making another “sale” online is critical for any disaster plan.

With all that, now we come to the issues you’ll deal with in choosing the right planning lawyer for your needs. Here’s another mistake:

2) Choosing a lawyer who will charge you overly-high hourly rates for simple services.

Many lawyers will lure you in with (again) “cheap” basic services…and proceed to rack up the fees as they execute planning services which really should have been covered by the flat fee.

When you’re investigating flat fee services from a lawyer, here are some simple questions to ask:

• “Are all of your fees flat fees?”

• “What about ongoing work after the initial completion of my estate plan documents?”

• “What happens when I call with legal questions 2 years after my planning documents were completed?”

• “What if the questions are about something other than my estate plan?”

You need to be satisfied by the answers you receive to these questions, as they often sneak up on families after-the-fact, and can be a major drain on your family’s cashflow.

To you and your family’s financial and emotional peace!