We have all dabbled with a do-it-yourself project at one time or another. When successful, a good do-it-yourself project can save money and boost self esteem. When unsuccessful, it provides an opportunity (if so desired), to learn from one’s mistakes and try again.
But not all projects are created equally. When it comes to estate planning, there isn’t always room for a second chance. And the cost of not getting it right the first time might be greater than you think …
In 2007, a woman named Katherine Webster attempted to help her uncle create an estate plan, the result of which was Katherine filing a lawsuit against LegalZoom (one of the biggest on-line providers of do-it-yourself legal documents in the nation).
Katherine’s uncle had been sick and was concerned about his health. He wanted to make certain his estate was in order. Katherine agreed to work as his agent and assist him in this endeavor. Using documents provided by LegalZoom, Katherine’s uncle completed his estate plan (including a trust and financial power of attorney). When Katherine (acting as agent) attempted to transfer her uncle’s assets into the trust, she learned the documents were not properly prepared, and thus the financial institution rejected them.
Consequently, Katherine and her uncle contacted LegalZoom’s customer service department. However, customer service was unable to provide much assistance, as they were not licensed attorneys and therefore unable by law to provide legal advice.
Katherine’s uncle died in November of the same year. His estate remained unsettled. His attempt at do-it-yourself estate planning cost his estate thousands of dollars, and required the hiring of an attorney to straighten out issues with the financial institution.
The good news…
After more than two years, the matter of Katherine’s lawsuit came to a close and a settlement was reached.
The bad news…
Katherine’s uncle never received the peace of mind of knowing everything would work out, which is part of what an estate plan provides.
For questions on wills, trusts, or other estate planning options, please contact a qualified estate planning attorney.
