In an article written September 10, 2012, by Jeanne Skowronski of the Wall Street Journal, Ms. Skowronski writes about the importance of choosing the right trustee to serve as the fiduciary of your estate. Ms. Skowronski talks about four questions which she feels should be asked in deciding who should serve as fiduciary. She asks:
- How large and complex are the assets in the trust?
- Can anyone in your family do the job?
- How are the relationships between your beneficiaries?
- Have you explored other options?
Here at Hughes Estate Group, we emphasize the great importance of choosing the right individual or entity to serve as the fiduciary of a person's estate. We ask a series of questions in order to help you determine the best fiduciaries for your estate plan.
We feel there should be much more deliberation in determining who should serve than simply naming your first born child for example or even the child most able to handle finances. The relationships between siblings and many other issues also hold great bearing on who should be named as the individual or individuals to take care of your affairs at your incapacity or death. It is important to ask the right questions in deciding who should serve as trustee of your trust, or agent of your power of attorney, or personal representative of your will or estate.
Showing posts with label Wills. Show all posts
Showing posts with label Wills. Show all posts
Thursday, January 9, 2014
Tuesday, January 7, 2014
New Year's Resolution
At the beginning of this new year, we at Hughes Estate Group wish all a happy and successful year. We would encourage everyone to set a goal for this year to either get an estate plan in place (if a plan is not in place) or review and update any existing estate plan (if a plan does exist). Death is something we will all experience. Ensuring the smooth transition of one's estate to beloved beneficiaries is one of the best gifts a person can give his or her family.
Wednesday, June 6, 2012
When Is A Power of Appointment Used?
Generally a power of apointment is used in estate planning. For example, a donor may want to give authority to a fiduciary/donee to apoint assets in the fiduciary/donee's discretion to an incapacitated beneficiary. A power of appointment can be included in a power of attorney, a will, or a trust. Where a donor does not want to give a fiduciary a power of appointment, it is important to make that desire clear in estate planning documents in order to avoid an IRA argument that the assets the fiduciary is simply managing as a fiduciary are actually part of the fiduciary's estate for estate or gift tax purposes.
Tuesday, June 5, 2012
Power of Appointment Types
There are two types of powers of appointment: a general power of appointment and a limited (special) power of appointment. Each of these types of powers carries different and significant tax implications.
General Power of Appointment:
In a general power of appointment the donor gives the donee authority to appoint (transfer) the donor's rights, assets, or items to anyone the donee wishes, including the donee himself. Potential adverse tax consequences accrue to a donee who possesses a general power of appointment: the rights, assets, or items which the donee has power to appoint are considered the donee's property for gift and estate tax purposes.
Limited (Special) Power of Appointment:
In a limited (special) power of appointment the donor limits the donee's authority to appoint (transfer) the donor's rights, assets, or items. The authority may be limited in various ways. For example, the donee may be limited in regard the the persons to whom he or she can appoint assets; or the donee may be limited in regard to the times at which he or she can appoint assets; or the donee may be limited in regard to the purposes for which he or she can appoint assets (for instance, the health, education, maintenance, or support of the appointee). In certain circumstances the donee possessing a limited power of appointment and the appointee may be the same person. With a limited (special) power of appointment, the Internal Revenue Service usually does not consider the rights, assets, or items subject to appointment to be owned by the donee in determining the donee's own gift and estate taxes. In estate planning, generally a limited (special) power of appointment is preferred over a general power of appointment.
General Power of Appointment:
In a general power of appointment the donor gives the donee authority to appoint (transfer) the donor's rights, assets, or items to anyone the donee wishes, including the donee himself. Potential adverse tax consequences accrue to a donee who possesses a general power of appointment: the rights, assets, or items which the donee has power to appoint are considered the donee's property for gift and estate tax purposes.
Limited (Special) Power of Appointment:
In a limited (special) power of appointment the donor limits the donee's authority to appoint (transfer) the donor's rights, assets, or items. The authority may be limited in various ways. For example, the donee may be limited in regard the the persons to whom he or she can appoint assets; or the donee may be limited in regard to the times at which he or she can appoint assets; or the donee may be limited in regard to the purposes for which he or she can appoint assets (for instance, the health, education, maintenance, or support of the appointee). In certain circumstances the donee possessing a limited power of appointment and the appointee may be the same person. With a limited (special) power of appointment, the Internal Revenue Service usually does not consider the rights, assets, or items subject to appointment to be owned by the donee in determining the donee's own gift and estate taxes. In estate planning, generally a limited (special) power of appointment is preferred over a general power of appointment.
Monday, June 4, 2012
Power of Appointment
Parties involved with a power of appointment are:
"Donor" is the person who creates a power of appointment. The donor is usually the owner of rights, assets, or items being ultimately appointed by the donee.
"Donee" or "holder" refers to the person who possesses a power of appointment--who has been named to appoint or transfer all or a portion of an owner's rights, assets, or items.
"Appointee" is the person who receives the rights, assets, or items as a result of the power of appointment being exercised.
"Taker in Default" is the person who receives the rights, assets, or items if the power of appointment is not exercised.
General Definition:
A "power of appointment" is a unique power given to a donee (holder) by a donor to distribute the donor's rights, assets, or items usually at the donor's death to appointees. A donee of a power of appointment is different than a personal representative or trustee. A donee of a power of appointment does not have the responsibility of managing a person's estate or trust assets. Rather, the donee has the authority to appoint the donor's rights, assets, or items to appointees. There are two types of powers of appointment: a general power of appointment and a limited (special) power of appointment. Each of these types of powers carries different and significant tax implications.
"Donor" is the person who creates a power of appointment. The donor is usually the owner of rights, assets, or items being ultimately appointed by the donee.
"Donee" or "holder" refers to the person who possesses a power of appointment--who has been named to appoint or transfer all or a portion of an owner's rights, assets, or items.
"Appointee" is the person who receives the rights, assets, or items as a result of the power of appointment being exercised.
"Taker in Default" is the person who receives the rights, assets, or items if the power of appointment is not exercised.
General Definition:
A "power of appointment" is a unique power given to a donee (holder) by a donor to distribute the donor's rights, assets, or items usually at the donor's death to appointees. A donee of a power of appointment is different than a personal representative or trustee. A donee of a power of appointment does not have the responsibility of managing a person's estate or trust assets. Rather, the donee has the authority to appoint the donor's rights, assets, or items to appointees. There are two types of powers of appointment: a general power of appointment and a limited (special) power of appointment. Each of these types of powers carries different and significant tax implications.
Thursday, November 3, 2011
A Second Marriage And Children Of The First Marriage Fight With Murder Thrown In
Judge Patrick Maqubela, acting judge in the Western Cape High Court, was suffocated June 5, 2009 in his Bantry Bay flat. He wife of his second marriage, Thandi Maqubela, has been accused of co-conspiring to kill him.
At the time of his death, Thandi Maqubela declared her husband had died intestate or without a testamentary document in place. Later, she declared that she had found his will. The difference between how Mr. Maqubela's R20m estate would be distributed by the laws of intestate versus by a will it hugh.
According to the intestate laws of South Gauteng, Thandi Maqubela would receive half the estate and Mr. Maqubela's five children would receive the other half to be divided in five equal shares. With the will, the two children from Mr. Maqubela's first marriage are completely cut out of the will and Thandi Maqubela's daughter from a previous marriage is named a beneficiary. Mr. Maqubela's son from his first marriage, Duma, is contesting the validity of the will saying that he cannot believe his father would disinherit him and his sister, Patiwe.
A full article reporting on the situation can be read here.
At the time of his death, Thandi Maqubela declared her husband had died intestate or without a testamentary document in place. Later, she declared that she had found his will. The difference between how Mr. Maqubela's R20m estate would be distributed by the laws of intestate versus by a will it hugh.
According to the intestate laws of South Gauteng, Thandi Maqubela would receive half the estate and Mr. Maqubela's five children would receive the other half to be divided in five equal shares. With the will, the two children from Mr. Maqubela's first marriage are completely cut out of the will and Thandi Maqubela's daughter from a previous marriage is named a beneficiary. Mr. Maqubela's son from his first marriage, Duma, is contesting the validity of the will saying that he cannot believe his father would disinherit him and his sister, Patiwe.
A full article reporting on the situation can be read here.
Thursday, October 27, 2011
Moving To A New State With Estate Documents In Place
If you have estate documents (wills, trusts, powers of attorney, etc.) and you move to a new state, it is always good to have an estate planning attorney in the new state review your documents. A general rule of thumb is wills and trusts will less likely need to be amended with a move to a new state. Powers of attorney, especially health care, will more likely need to be amended to meet the new state's requirements.
Tuesday, October 25, 2011
Basic Stages of Life
There are three basic stages of life. Different estate documents are used for each stage of life.
The first stage of life is when an individual is alive and mentally competent. At this point in a person's life, not estate documents are necessary. However, this is the time an individual should put estate documents in place for the next two stages of life.
The second stage of life is when an individual is alive and mentally incapacitated. At this point, powers of attorney can be used to establish authority and begin acting for a person in the second stage of life. If powers of attorney have not been created, an individual seeking authority to act for a mentally incapacitated person must petition a court for that authority in a guardianship/conservatorship proceeding.
The third stage of life is when an individual dies. Once someone dies, the powers of attorney or a guardianship/conservatorship ends. At the point of death, trusts and/or wills are then used to establish authority and distribute a deceased person's estate to beneficiaries. If there is not a properly funded trust or there is only a will or there is no will at all, most likely authority to act on behalf of a deceased person must be sought through the probate court.
The first stage of life is when an individual is alive and mentally competent. At this point in a person's life, not estate documents are necessary. However, this is the time an individual should put estate documents in place for the next two stages of life.
The second stage of life is when an individual is alive and mentally incapacitated. At this point, powers of attorney can be used to establish authority and begin acting for a person in the second stage of life. If powers of attorney have not been created, an individual seeking authority to act for a mentally incapacitated person must petition a court for that authority in a guardianship/conservatorship proceeding.
The third stage of life is when an individual dies. Once someone dies, the powers of attorney or a guardianship/conservatorship ends. At the point of death, trusts and/or wills are then used to establish authority and distribute a deceased person's estate to beneficiaries. If there is not a properly funded trust or there is only a will or there is no will at all, most likely authority to act on behalf of a deceased person must be sought through the probate court.
Friday, October 21, 2011
Movie Review: Scavenger Hunt
Here's an inventive way to give away your estate. Have your relatives participate in a scavenger hunt where the winner inherits all. Scavenger Hunt (1979) is exactly that. In this comic movie, the relatives and even the servants compete for the prize: the $200 million dollar estate.
Check out this review.
Check out this review.
Tuesday, October 18, 2011
William Shakespeare and Edward De Vere's Estates
No matter which side you take--William Shakespeare is "the" William Shakespeare or Edward De Vere is "the" William Shake-speare--it is of interest to look how their heirs inherited each of their estates.
The Stratfordian Shakespeare's Will
William Shakespeare of Stratford prepared a will before he died.
To his daughter Judith he willed:
- 100 pounds for a marriage portion and another 50 pounds if she renounced any claim to the Chapel Lane cottage.
- An additional 150 pounds if Judith lived another three years, but forbade her husband any claim to it unless he settled on her lands worth the 150 pounds.
- If Judith did not live another three years, the 150 pounds was to go to Shakespeare's granddaughter Elizabeth Hall.
- A silver bowl
To is sister, Joan Hart, he willed:
- 30 pounds
- Life estate with nominal rent in the Western of the two houses on Henley Street, which Shakespeare himself inherited from his father in 1601.
To Joan Hart's sons, his nephews, he willed:
-5 pounds to each of Joan's three sons.
To his granddaughter, Elizabeth Hall, he willed:
- All his silver plates, except the silver bowl left to Judith.
To the poor of Stratford he willed:
-10 pounds to the poor of Stratford.
To his friends he willed:
- His sword and various small bequests to local friends.
- Memorial ring to be bought for his lifelong friend Hamnet Sadler
- Memorial rings to be bought for John Hemynges, Richard Burbage, and Henry Cundell
To his wife, Anne, he willed:
- His "second best bed."
To his daughter, Susanna and Son-in-Law, John Hall, he willed
- "All the Rest of my Goods, Chattels, Leases, Plate, Jewels & Household stuff whatsoever after my debts and Legacies paid & my funeral expenses discarded."
Oxfordian Shake-speare's Estate
Edward De Vere was the 17th Earl of Oxford. He inherited the Oxford estate when his father died. Titled property usually was inherited by the oldest son in a nobleman's family. Edward De Vere had only one living son, Henry, from his second wife, Elizabeth.
Edward did sell some of his estate during his life, and established a trust fund for his three living daughters from his first wife, Anne. His three daughters, Elizabeth, Bridget, and Susan all married men of title as well.
The remaining estate went to his second wife, Elizabeth, and his son, Henry, who became the 18th Earl of Oxford.
The Stratfordian Shakespeare's Will
William Shakespeare of Stratford prepared a will before he died.
To his daughter Judith he willed:
- 100 pounds for a marriage portion and another 50 pounds if she renounced any claim to the Chapel Lane cottage.
- An additional 150 pounds if Judith lived another three years, but forbade her husband any claim to it unless he settled on her lands worth the 150 pounds.
- If Judith did not live another three years, the 150 pounds was to go to Shakespeare's granddaughter Elizabeth Hall.
- A silver bowl
To is sister, Joan Hart, he willed:
- 30 pounds
- Life estate with nominal rent in the Western of the two houses on Henley Street, which Shakespeare himself inherited from his father in 1601.
To Joan Hart's sons, his nephews, he willed:
-5 pounds to each of Joan's three sons.
To his granddaughter, Elizabeth Hall, he willed:
- All his silver plates, except the silver bowl left to Judith.
To the poor of Stratford he willed:
-10 pounds to the poor of Stratford.
To his friends he willed:
- His sword and various small bequests to local friends.
- Memorial ring to be bought for his lifelong friend Hamnet Sadler
- Memorial rings to be bought for John Hemynges, Richard Burbage, and Henry Cundell
To his wife, Anne, he willed:
- His "second best bed."
To his daughter, Susanna and Son-in-Law, John Hall, he willed
- "All the Rest of my Goods, Chattels, Leases, Plate, Jewels & Household stuff whatsoever after my debts and Legacies paid & my funeral expenses discarded."
Oxfordian Shake-speare's Estate
Edward De Vere was the 17th Earl of Oxford. He inherited the Oxford estate when his father died. Titled property usually was inherited by the oldest son in a nobleman's family. Edward De Vere had only one living son, Henry, from his second wife, Elizabeth.
Edward did sell some of his estate during his life, and established a trust fund for his three living daughters from his first wife, Anne. His three daughters, Elizabeth, Bridget, and Susan all married men of title as well.
The remaining estate went to his second wife, Elizabeth, and his son, Henry, who became the 18th Earl of Oxford.
Wednesday, October 12, 2011
Definition of the Week: Fiduciary/Fiduciaries
Fiduciary/Fiduciaries: A fiduciary is an entity or person who manages your affairs if you are incapacitated or deceased. The word fiduciary is a general term referring to agents, personal representatives, or trustees.
Thursday, September 29, 2011
The Basic Stages of Life
There are three basic stages of life when contemplating estate planning.
Individual is alive and mentally competent
When an individual is alive and mentally competent, estate planning documents can be in place, but most likely the documents are sleeping (or not being used) during this stage of life.
Individual is alive and mentally incapacitated
When an individual is alive but mentally incapacitated, there are certain estate documents that if prepared ahead of time allow family members to step in and begin acting on behalf of the incapacitated individual. The kind of documents that might be prepared for this stage of life are:
Individual has died
When an individual has died, any powers of attorney used during incapacity becomes void and family members must turn to any will or trust that has been established to deal with this stage. If an individual has prepared a trust and/or will, family members can begin the process of accessing assets, paying bills, and distributing assets to the beneficiaries of the deceased person. If the person dies without estate documents in place, most likely the family members will need to go through probate to obtain authority to access and distribute any property of the deceased person.
In contemplating estate planning, it is important to be aware of the three stages of life and prepare for each stage.
- Individual is alive and mentally competent
- Individual is alive and mentally incapacitated
- Individual has died
Individual is alive and mentally competent
When an individual is alive and mentally competent, estate planning documents can be in place, but most likely the documents are sleeping (or not being used) during this stage of life.
Individual is alive and mentally incapacitated
When an individual is alive but mentally incapacitated, there are certain estate documents that if prepared ahead of time allow family members to step in and begin acting on behalf of the incapacitated individual. The kind of documents that might be prepared for this stage of life are:
- health care power of attorney
- medical directive (pull-the-plug)
- health care directive
- financial power of attorney
- do not resuscitate (In Utah, an individual can only obtain a DNR by contacting a physician and filling out the DNR with the physician.)
Individual has died
When an individual has died, any powers of attorney used during incapacity becomes void and family members must turn to any will or trust that has been established to deal with this stage. If an individual has prepared a trust and/or will, family members can begin the process of accessing assets, paying bills, and distributing assets to the beneficiaries of the deceased person. If the person dies without estate documents in place, most likely the family members will need to go through probate to obtain authority to access and distribute any property of the deceased person.
In contemplating estate planning, it is important to be aware of the three stages of life and prepare for each stage.
Monday, September 19, 2011
The Real Pain Of Being The Executor Of An Estate
The Wall Street Journal has an article in today's paper regarding the responsibilities an estate executor. It is more work than glory. We encourage parents to involve their executor child in the beginning stages of estate planning to completion and maintaining the estate plan so that the child executor will be as prepared as possible for the inevitable responsibility of executing the estate. Here is the full article for your review.
Thursday, September 1, 2011
The Cost of Ignorance
By most measures, Larry Hillblom was a smart guy, but he lost his senses when he decided to draft his own will.
Mr. Hillblom was the "H" in DHL Corp., the air-courier giant. His interest was valued at $600 million before he died in 1995. He graduated from Boalt Hall School of Law at Berkeley and argued high-profile international cases before the Ninth Circuit. He was a special judge in his adopted county, the Commonwealth of the Northern Mariana Islands.
But when Mr. Hillblom decided to draft his own will, he exhibited little intelligence. In the will, he left most of his $600 million to university medical centers for research. But, alas, the will lacked one detail: a simple, one-sentence disinheritance clause.
Mr. Hillblom's drafting failure was unforntunate, because over the years he had fathered several children with young women through the South Pacific. The mother of Hillblom's oldest known child named him "Junior Larry Hillblocm." When Junior was ten, an attorney represented him and three other offspring and sued Hillblom's estate, claiming inheritance rights.
The estate, DHL, and the various medical research universities hired over 100 buttoned-down attorneys to fight the paternity claims. After more than four years of litigation, the case was resolved.
The four children won.
A very important lesson can be learned from Mr. Hillblom's mistake. It is always advisable to consult an expert in ensuring your estate plan will be carried out in the way your intended it to. Or pay the price to become the expert yourself. Check out our website.
Mr. Hillblom was the "H" in DHL Corp., the air-courier giant. His interest was valued at $600 million before he died in 1995. He graduated from Boalt Hall School of Law at Berkeley and argued high-profile international cases before the Ninth Circuit. He was a special judge in his adopted county, the Commonwealth of the Northern Mariana Islands.
But when Mr. Hillblom decided to draft his own will, he exhibited little intelligence. In the will, he left most of his $600 million to university medical centers for research. But, alas, the will lacked one detail: a simple, one-sentence disinheritance clause.
Mr. Hillblom's drafting failure was unforntunate, because over the years he had fathered several children with young women through the South Pacific. The mother of Hillblom's oldest known child named him "Junior Larry Hillblocm." When Junior was ten, an attorney represented him and three other offspring and sued Hillblom's estate, claiming inheritance rights.
The estate, DHL, and the various medical research universities hired over 100 buttoned-down attorneys to fight the paternity claims. After more than four years of litigation, the case was resolved.
The four children won.
A very important lesson can be learned from Mr. Hillblom's mistake. It is always advisable to consult an expert in ensuring your estate plan will be carried out in the way your intended it to. Or pay the price to become the expert yourself. Check out our website.
Wednesday, August 31, 2011
Think Twice Before Deregulating the Law
Our letter to the editor was published in regard to an article in the Wall Street Journal that discussed the possibility of deregulating the practice of law. You can read our response as well as a couple of other individuals' responses here.
Friday, August 26, 2011
Book Review: "Little Dorrit"
Some of Charles Dicken's greatest works use inheritance to move the stories along. We have mentioned Charles Dicken's "Bleakhouse" in a previous blog. Another of Charles Dicken's great books is "Little Dorrit." Much of the story follows individuals who grapple with the consequences that come with having a lack of money or an over abundance of money. There is the burning of a will and unclaimed inheritance reclaimed by relatives. There are family secrets to protect and the ultimate triumph of love over money. It really is a great book. The BBC production starring Claire Foy, Matthew Macfayden, Tom Courtenay, et al. (2009) brings to life this wonderful book.
Little Dorrit in DVD
Little Dorrit in paperback
Little Dorrit in DVD
Little Dorrit in paperback
Tuesday, August 23, 2011
Response To The Editor
Yesterday, August 22, 2011, we reviewed an article in the Wall Street Journal titled, "Time to Deregulate the Practice of Law." You can read the full article here. We responded to the article with a letter to the editor. This is our full response to the article:
August 22, 2011
Editor:
In regard to Winston and Crandall's essay "Time to Deregulate the Practice of Law" (WSJ 8/22/2011). A will is a simple document indicating how you want your assets distributed at your death. Simple. Anybody can write on a napkin, "Distribute my assets equally to my children." Simple.
Then you die. Your children are now faced with the processes of actually transferring your home, your bank account, your investment or retirement accounts, your life insurance policy, your car to themselves. The children must deal with county recorders and deeds, bank managers and signature cards, investment firms and contracts, life insurance companies and policies, the division of motor vehicles and titles. Dealing with these entitites may also be simple . . . or not.
To think that a will is the beginning and end of the legal issues involved in transferring assets at death exhibits a gross ignorance of reality, let alone the law, exactly the level of gross ignorance companies like LegalZoom (praised by the authors) deeply rely upon in selling their wares, but the kind of gross ignorance I did not expect from senior fellows at the Brookings Institution.
Craig E. Hughes
Hughes Estate Group, Attorneys
August 22, 2011
Editor:
In regard to Winston and Crandall's essay "Time to Deregulate the Practice of Law" (WSJ 8/22/2011). A will is a simple document indicating how you want your assets distributed at your death. Simple. Anybody can write on a napkin, "Distribute my assets equally to my children." Simple.
Then you die. Your children are now faced with the processes of actually transferring your home, your bank account, your investment or retirement accounts, your life insurance policy, your car to themselves. The children must deal with county recorders and deeds, bank managers and signature cards, investment firms and contracts, life insurance companies and policies, the division of motor vehicles and titles. Dealing with these entitites may also be simple . . . or not.
To think that a will is the beginning and end of the legal issues involved in transferring assets at death exhibits a gross ignorance of reality, let alone the law, exactly the level of gross ignorance companies like LegalZoom (praised by the authors) deeply rely upon in selling their wares, but the kind of gross ignorance I did not expect from senior fellows at the Brookings Institution.
Craig E. Hughes
Hughes Estate Group, Attorneys
Thursday, August 4, 2011
Estate Planning Fraud Alert
There is danger in using online documents. Read our article here on "The Dangers of Internet Documents." This blog posting is to give you an update on the two class action suits mentioned in the article.
The Missouri Case:
Todd Janson, et al. v. Legalzoom.com, Inc., Case 1:10-CV-04018-NKL
Synopsis of case: This class action suit claims that Legalzoom.com, Inc. ("Legalzoom"), an internet provider of legal documents, is unlawfully practicing law in Missouri by providing legal documents and instructions over the internet.
A judge ruled against Legalzoom's request to dismiss the case. The case goes to trial August 22, 2011. We will keep you posted.
The California Case:
Webster v. Legalzoom.com, Inc., No. BC 438637 (Los Angeles Super. Ct. filed May 27, 2010)
Synopsis of case: Katherine Webster, the executor of an estate, claimed that Legalzoom created a trust that was legally defective causing the estate to pay over $10,000 to undo damage done by the flawed trust. Ms. Webster claimed that Legalzoom used unfair and deceptive business practices as well as engaging in the unauthorized practice of law.
Legalzoom is settling with the Plaintiffs in the Webster case which will also resolve a related class action suit, Whiting v. Legalzoom.com, Inc. Legalzoom is not accepting blame for the defective trust. They are offering to settle in order to stop legal costs in the courts. We will keep you posted.
Future Updates:
We will be covering a serious of online articles regarding the issues of the unlawful practice of law and online legal document companies in the next few weeks. It is a serious matter, and it is important for you to be aware of the issues in order to protect yourself from being harmed.
The Missouri Case:
Todd Janson, et al. v. Legalzoom.com, Inc., Case 1:10-CV-04018-NKL
Synopsis of case: This class action suit claims that Legalzoom.com, Inc. ("Legalzoom"), an internet provider of legal documents, is unlawfully practicing law in Missouri by providing legal documents and instructions over the internet.
A judge ruled against Legalzoom's request to dismiss the case. The case goes to trial August 22, 2011. We will keep you posted.
The California Case:
Webster v. Legalzoom.com, Inc., No. BC 438637 (Los Angeles Super. Ct. filed May 27, 2010)
Synopsis of case: Katherine Webster, the executor of an estate, claimed that Legalzoom created a trust that was legally defective causing the estate to pay over $10,000 to undo damage done by the flawed trust. Ms. Webster claimed that Legalzoom used unfair and deceptive business practices as well as engaging in the unauthorized practice of law.
Legalzoom is settling with the Plaintiffs in the Webster case which will also resolve a related class action suit, Whiting v. Legalzoom.com, Inc. Legalzoom is not accepting blame for the defective trust. They are offering to settle in order to stop legal costs in the courts. We will keep you posted.
Future Updates:
We will be covering a serious of online articles regarding the issues of the unlawful practice of law and online legal document companies in the next few weeks. It is a serious matter, and it is important for you to be aware of the issues in order to protect yourself from being harmed.
Wednesday, July 27, 2011
Who Did Julius Ceaser Adopt Posthumously as Dictated by His Last Will?
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