We’ve blogged about this in the past but with the resurgence of website’s posting free or very cheap legal advice and document preparation we wanted to reiterate the dangers of letting a company that doesn’t know you and hasn’t even consulted with you prepare your will, powers of attorney or other life and death documents. These are the measures that dictate the handling of your care in case of a major medical emergency, how your financial matters will be handled and who your assets will go to. These are not things to take lightly or just let a website’s “quick quiz” handle. We understand that this seems to be the simple, easy and cheap way to handle the preparation of these documents but it’s been proven time and again to be riskier than you might think.
The truth is, creating these documents is often left to the last minute and is rarely considered in advance when you have time to think clearly through the process. Most people don’t even realize they need a will and powers of attorney. Reasons given might include: cost, difficulty in finding time to see an attorney, reluctance to contact an attorney, or difficulty in finding an attorney whom they feel will help them.
The result of this lack of consideration: contacting online services such as LegalZoom.com, or buying programs that allow you to create your own documents. While these may seem fast and easy, this is the perfect “buyer beware” scenario just waiting to backfire on you.
In fact, trying to save money with “do-it-yourself” legal documents can have very expensive consequences. LegalZoom.com, for example, is the target of a class action lawsuit in California, as reported in Elder Law Answers recently.
The article as reported goes like this. “A man with only a few months to live asked his niece to help him execute a will and living trust using LegalZoom. The niece believed the advertising on the website that the documents would be legally binding. Furthermore, it was represented that if there was any trouble with the documents, the customer service department would help resolve them.
In actuality, the financial institutions that held the man’s money refused to transfer any money into the trust because they maintained that the documents were not legally valid. The customer service department apparently provided no assistance. After the man’s death, it cost thousands of dollars to rectify the damage caused by reliance on the LegalZoom documents.” Not exactly the scenario you want to have happen to you, right?
And, you still pay for the preparation of the LegalZoom documents. Furthermore, the fine print on the website states that “LegalZoom is not a law firm, does not act as your attorney and is not a substitute for the advice of an attorney. Rather, it helps you represent yourself…” Wow! So why are they taking on the responsibility of preparing your legal documents? They don’t even have a real attorney on staff!
Basically, any documents developed are based on a short questionnaire, which may not ask the appropriate questions for your circumstances. Furthermore, any documents developed online, or from a purchased program will not be state specific, which can be an issue for power of attorney documents and wills. You, your executor or agents may find the documents inadequate or invalid when it is too late to rectify the damage.
Another area where failing to consult an attorney can have unexpected and expensive results is in the preparation of your living trust or revocable trust. All too often, non-attorneys are marketing these documents, using standard forms that are “customized” for the client. Remember that your situation is different and should be addressed specifically so that your documents reflect your entire set of circumstances, are legally binding and professionally prepared and filed.
Get real, professional legal advice with a free consultation with one of our attorneys.
Call 888-500-6700 or email info@calelderlaw.com
