Wednesday, April 13, 2011

Two Bad Estate Plan Strategies | Houston Trust Attorney

By: Kim Hegwood, Houston Trust Attorney

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 are 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 am 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 is not my intention to scare you, but again--I have seen it more than I would 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 would 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 will deal with in choosing the right planning lawyer for your needs.
 
Choosing a Houston trust 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 are 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.

And, of course, here is something which will make it even easier... (repeated from last week, because of good response)

+++++++++++++++++
"PROCRASTINATORS ONLY" Special Gift Certificate
$200 Towards Any Estate-Planning Service
"Yes, I Have Procrastinated In Preparing an Estate Plan ... But I Still Want to Protect Myself and my Family from All the New Tax Laws and Ensure That My Family is As Prepared and Protected As Possible With a Rock-Solid Estate Plan."
Deadline April 25th
Not valid with any other offer