An attorney versus online estate planning: Legal Zoom can and WILL hurt you

I see Legal Zoom is being sued for not preparing an estate plan that did what it said it would.  Banks and financial institutions would not accept the Legal Zoom documents to fund the individual’s trust.  As I always tell my clients, your estate plan is not worth the paper it’s printed on unless and until you fund your trust.  And the Legal Zoom documents?  Were seen to be unacceptable to the banks and financial institutions.  In addition, the information given by Legal Zoom on estate planning is supposedly designed to give users a “general understanding of the law” but “is not guaranteed to be correct, complete or up to date.

Really?  Legal Zoom can’t even guarantee that the “general understanding” is correct?  Do you really want to trust everything you’ve worked for – your assets, your estate, and your family, to a company that can’t even get basic law correct?

Further, Legal Zoom tells you, on their website, that 80% of people who fill in blank forms do so incorrectly.  Legal Zoom is, in effect, saying to their users they they are very likely to do the forms wrong, but they should do so anyway.  Why would you do this?  I have seen it time and again, when I send out my intake forms to my estate planning consultations.  Nearly everyone marks something that ultimately is incorrect after we’ve had some time to talk about it.

Finally, a lawyer in Minnesota went through the process of getting a will using Legal Zoom.  You can see his video here.  What is enlightening is that the will was packaged well, and was better than the lawyer expected.  But the reality is that there were MANY provisions, standard, important provisions, that were left out of the will.  A will is a pretty basic document for an attorney to complete, and Legal Zoom couldn’t even get it right.  I won’t go into the detail  of the missing provisions, but suffice to say there were a number of critical paragraphs missing.

Haven’t you worked too hard to leave your estate plan to chance?  Why is it a better option to save $1,500 on an online estate plan, just to cost your family – your closest loved ones – tens if not hundreds of thousands of dollars in untangling your messed up estate plan?!  I know times are tough, and we’re all looking to save dollars where we can.  But this is about your entire life.  Do not work your entire life to screw it up in the end.

We have an automated estate planning process that allows clients to save up to 50% on their estate plans by inputting their information in an online format.  Their answers, and indeed their entire estate plan, is be personally examined, reviewed, and assembled personally by us, but because of the online aspect, it will be at a significantly lower cost.  This option helps to combine the needs of my clients who know they need an estate plan but want a lower cost, but aren’t willing to risk everything just to save a few dollars.

Click here to access our online estate planning portal.

Estate planning and California divorce: a checklist to avoid disaster

Often, after the time, expense, and emotional upheaval of California divorce (as well as moving, adjusting to life as a single person/parent, dealing with tightening finances…etc. etc.), the last thing on anyone’s mind is estate planning.  Yes, it’s one of the things on the list of things to do…later, when you have time.  When you’re emotionally ready to think about it.  Right?  Well, the reality is that just post-divorce IS the best time to do estate planning.  Why?

  1. Because it’s on your mind since you’re working to get the rest of your life in order.
  2. It’s critical to get your ex-spouse off of your accounts and as your beneficiary.  You really don’t want him/her inheriting from you, do you?
  3. It’s really not that hard, and in fact rather than being draining or difficult, can not only be empowering but help you to really feel like your life has restarted.

Here are the key estate planning items you need to take care of post-divorce (and note you probably can’t do these during your divorce due to the ATROs):

  1. Create a new (or initial) living trust and will to protect your assets and your beneficiaries.
  2. Cancel any old estate plans.
  3. Sign a new power of attorney for asset management.
  4. Sign a new health care advance directive power of attorney.
  5. Designate the guardian for your children should you pass away.
  6. Get new life insurance to meet your (and your children’s) needs.
  7. Update the beneficiary on your life insurance, retirement accounts (401Ks, IRAs, etc.) and other payable on death (POD) accounts.
  8. Make sure your assets are retitled in your name only.
  9. Let people know you’re no longer divorced, like banks, health care providers, and other trusted advisors so no one gives out personal or confidential information inadvertently.
  10. Talk to your parents about estate planning, the importance, and how it will help everyone if they create an estate plan (it helps them to leave a legacy and saves you the additional intense difficulty of probate).

Doing these simple tasks will help you to feel stronger, in control, and empowered to take on life’s next challenge.  What are you waiting for? Make an online appointment by clicking here.

Financial issues in California divorce

Since we’re talking about California divorce this week, I thought I’d add a note on finances, since they seem to be at least one of the top reasons for divorce. Untangling your financial lives can be really tough, even out of court.  Here are some things to consider:

During divorce:

Tax implications – what are the tax implications of your filing status as you go through divorce?  What are the implications of your asset division?

Expert fees – what are your attorney/accountant/child custody evaluator/financial advisor fees going to be?

Support – there are tax implications to paying and receiving child and spousal (or family) support in California. If you just take the highest/lowest amount because funds are tight, you may be in trouble later.

But the divorce process is just the beginning.  You also have to consider the financial aspects of your post-divorce life.  You need to consider these things as soon as possible, and not wait until it’s happened.

Post-Divorce:

Cost of living adjustment – here’s still the same bills, but only one of you is paying them.

Change in auto/home/health insurance costs

Increase in “combined” costs.  Did you share a Netflix account?

Lower savings and discretionary income due to the tightened financial belt.

Loss of assets in the divorce – that retirement home may be gone.

Needing/getting new employment – what do you do if you’ve never worked?

Reduced retirement income or savings – you may have thought you were set for retirement…now what?

The theme for this week seems to be planning.  Planning is you’re thinking of divorce, and planning if you’re in the process of divorce.  Don’t let the process or anything that happens in the process to take you by surprise.  It doesn’t have to if you know what to look for and where to look. Need more help? Click here to make an online appointment.

The divorce process in California

When I first started practicing family/divorce law in California, I wanted someone to walk me through the process, start to finish, so I could understand it as a whole.  What is troublesome, unfortunately, is that all divorces differ in many ways, so looking at the process in general can be tricky.  But let’s try…

In California, the first step in getting a divorce is to file a Petition.  It’s fairly easy, and it doesn’t matter at all which spouse files the Petition (or files first).  There’s no advantage or benefit to filing the Petition over the Response (though there may be some advantages/disadvantages to filing sooner or later, but see an attorney on this…like me!).  To file a Petition in California you have to have lived in California for six months prior to the filing and in the county where you have filed for three months prior to the filing.

Once the Petition is filed (and the UCCJEA if you have children), you may need to file for an immediate court order regarding support, child custody and visitation, property or debt division, or some other urgent manner.  To do this, you file a Request for Order.  For any issues regarding support, you much file an Income and Expense Declaration, showing your – you got it – income and expenses so the court can calculate the appropriate support.

To complete your divorce, not only do you have to agree on child and spousal support, child custody and visitation, asset and debt division and any other issues you may have, but you have to complete your disclosures and obtain a Judgment.  The disclosures are forms: the Income and Expense Declaration and the Schedule of Assets and Debts (which is, you guessed it, your assets and debts), as well as a form showing you delivered these to your soon-t0-be-ex-spouse.  These are required in California, so you must be prepared to share all of your income, expenses, assets and debts with your spouse to get divorce.

You’re now in the home stretch: to obtain a Judgment, once you have everything resolved, you have to file a number of documents with the court.  It can be confusing, and most courts have packets at the clerk’s office to help you complete it.  Of course, a Family Law Coach can always help if you get stuck.  Need more detailed help? Click here to make an online appointment.

If you knew how hard California divorce was, you might reconsider…

I read an article last week, and it made me think of all of the couples out there who hastily file for divorce without thinking it through.  Or, perhaps they’ve thought it through, but maybe not in the right way.  Let me explain…

Divorce is hard.  It can take ages, and can be more emotionally taxing and draining than the actual marriage.  Financially?  It can be a disaster for both spouses.  Everyone suffers, not just the couple. The kids have it the worst, and other family members get into the mudslinging as well.  I have always told my clients that whatever you think it’s going to be, divorce is always much longer and much more expensive than you ever thought it would be.

Why does this happen?  I think mainly because most individuals divorcing haven’t taken the time to really learn about the process and how it works.  Most people know of and have heard stories from neighbors, relatives, and friends, so they think they have an idea of what they’re in for.  Sadly, every divorce is different.  Some actually are completed quickly, quietly, and somewhat painlessly – no lawyers, no high fees, no screaming matches and ugly custody battles.  Some are endless, and last until all of the children are 18 and out of the court’s jurisdiction (or longer!), and involve many lawyers, experts, and astronomical fees.  The rest are somewhere in between.

What can we do?  When someone is considering getting a divorce, take some time to learn about what that involves in your state/county/jurisdiction.  Don’t just listen to friends and co-workers.  Everyone’s situation is different.  Look on Nolo Press for books and articles.   Check out Divorce Source.  Consider a consultation with an attorney – tell him or her up front that you just want information because you’re considering divorce – or a Family Law Coach.  Just don’t go in blind, because you may be in for much more than you ever bargained for. Ready for some more information? Click here to make an online appointment.