Two Bad Estate Plan Strategies

“Avoid the crowd. Do your own thinking independently. Be the chess player, not the chess piece.”

- Ralph Charell

So, the government didn’t shut down on Friday night. That’s a good thing, of course.

But the political environment is such that we could be seeing some serious changes on the horizon, especially in the estate tax arena and in trust regulations. The President has been making signals that tax increases may be on their way.

Now … your friends may take in this information, and determine that they can take one of two strategies moving forward with succession and estate plans.

Both of which would be bad ideas…

Rowel Manasan’s

“Straight Talk” Personal Strategy

Two Bad Estate Plan Strategies

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…

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…even if you follow all of their instructions to a tee. I see it ALL THE TIME–frustrated clients bringing in online-generated plans, astonished at all the “hidden savings” my staff and I are able to find for them.

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:  YOU AGREE … choosing a well-trained and caring professional, who will put YOUR interests first–rather than just making another “sale” online.

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

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 Peace of Mind!