I recently had a prospective client ask: “Why should I hire you, when I can go to an internet service and obtain a trust?” This was a good question – one which deserves a fairly involved answer.
I realize that some attorneys feel threatened by the many internet services. I also realize that there are some “do-it-yourselfers” (who are few and far between) who are quite happy to research and become acquainted with the practical and tax effects of their plans. I also know that there are a number of attorneys who absolutely love these websites and services, making it their business to fix and deal with the errors.
Considering all of this, there are certainly some who are considering these services. For those, I have some thoughts and suggestions to consider:
1. Recognize that these preparation services are not being upfront. Even if you choose to use these services, be very careful in believing the hype and sales techniques which they employ. For example, one major service states that it is not a legal service, but a “self help” service. However, when a company provides you with documents and represents that they are legally sufficient, it is a legal help, not “self help.” They only say this to try to avoid the accusation that they are practicing law without a license.
2. “Acceptance” by courts mean little. Another hype phrase I have heard from one major service is that the documents they prepare have been “accepted” by in courts of all states. That is a very silly claim: One fairly old probate case involved a man who scrawled a handwritten will (i.e., a holographic will) on the plaster wall next to his bed before he died, giving his estate to his girlfriend. The plaster wall was accepted into evidence. The moral of the story: The threshold for being “accepted” by a court is very, very low. The real issue is: Do the documents reflect your wishes? If so, how do you know, and will the “document preparation service” explain it to you?
3. Funding can get complicated. One major aspect of any estate plan is “funding” the plan – in other words, placing assets into the name of the trust. If a trust is not funded, it is either useless, or great expense is required in making it effective.
4. You may need to get legal assistance at some point. Usually some court or court filing proceeding is required to give effect to a will. A trust will need administration, and you may need the assistance of an attorney when it comes time to administer the trust.
If you are considering a “service” these are some matters to consider. Also, there are many poorly written documents floating around, written by attorneys or otherwise, so please beware. If you are serious about planning your estate, I recommend that you go to an attorney whom you trust, and ensure that the task is done properly. Otherwise, do your research, and keep your expectations low – because in life, and beyond, you usually get what you pay for.
By the way, the client who prompted this blog entry hired me.