Menu

Legalzone for estate planning

Home Estate Planning Legalzone for estate planning

  • Avatar JBME 
    Participant
    Status: Spouse
    Posts: 525
    Joined: 03/26/2018

    @Johanna and @tim. Kids are right now 5, 3, and 1. obviously way too young and clearly the estate attorney is talking about something way down the line when they have jobs. I’m now asking myself if we shouldn’t proceed with this attorney. Going to have to talk to my wife tonight. I don’t like knowing more about something that I’m paying someone to be an expert in but I wonder if I’m being too hard on the attorney because in the end she’s an attorney and not a tax planner

    #216488 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8113
    Joined: 01/09/2016
    I don’t like knowing more about something that I’m paying someone to be an expert in but I wonder if I’m being too hard on the attorney because in the end she’s an attorney and not a tax planner

    Click to expand…

    I don’t know how an estate planner could not be expected to thoroughly understand the tax implications of beneficiary designations. Estate planning is pretty intertwined with tax planning. If she doesn’t know these answers, there should be a more senior attorney who she can turn to.

    I’m not saying this is something that should disqualify her as your estate planner, but this is pretty basic. And she has access to Google just like you do.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #216514 Reply
    Liked by JBME
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3032
    Joined: 09/18/2018
    Kids are right now 5, 3, and 1.

    Click to expand…

    We all make mistakes and miscommunicate. One email or sentence does not tell a complete picture. So in answer to your question, she may have been focused on the trust aspect or other parts that to her are critical. Taxed advantaged accounts are outside of the estate.

    I differ a little from Johanna in the knowledge piece. I would have been perfectly satisfied if she had indicated your retirement accounts could be passed to your children, see your CPA because tax benefits and withdrawl rules are different.  As Johanna indicated, although taxes are intertwined, the types of accounts available to your children are really important. Once she got specific, it seems she got outside of her wheelhouse. It’s OK to refer to a specialist, right? But it’s not OK to practice outside of your training. I would not expect her to be an expert on the details, but Geez at least point you to the direction of something that exists. She should know your IRA and an inherited IRA are different. Give her a chance at redemption and make a choice from there.

    The changes in the rules for iIRA’s are significant, Section 501. I would not expect an estate attorney to stay up to date with proposed legislation. You need to bring it to her attention. It’s an issue down the line, choices to be made. Maybe the Trust (with a tax hit) would be better.

    https://www.finance.senate.gov/imo/media/doc/RESA%20Summary%204.1.19-banner-converted.pdf

    In summary, if she isn’t familiar with the types of assets in your estate, then you are in the wrong office.

    #216533 Reply
    Liked by JBME
    Avatar chrisg202 
    Participant
    Status: Physician
    Posts: 64
    Joined: 01/16/2016

    What’s your current situation? Any kids? Any assets? What state? When do you finish training?

    Click to expand…

    I’m in Ohio

    Have 2 little kids

    owns a house

    just finished training actually

    #216553 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8113
    Joined: 01/09/2016

    What’s your current situation? Any kids? Any assets? What state? When do you finish training?

    Click to expand…

    I’m in Ohio

    Have 2 little kids

    owns a house

    just finished training actually

    Click to expand…

    Assets (actually, net worth?)

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #216569 Reply
    Avatar Drknowsbest 
    Participant
    Status: Physician
    Posts: 50
    Joined: 07/09/2017

    I would rather take my chances with a $200 attorney-prepared will than a $200 set of internet forms.

     

    Click to expand…

    so living in Hawaii we met with an attorney to go over our very simple situation. He quoted us $5000 this included doing AHCD for 500 dollar each, which is essentially free with two witnesses.

    I think for simple paperwork, legal zoom is fine. although if an attorney charged 200 dollars, I would go with that choice!

    #216577 Reply
    Liked by Craigy
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8113
    Joined: 01/09/2016

    I would rather take my chances with a $200 attorney-prepared will than a $200 set of internet forms.

    Click to expand…

    so living in Hawaii we met with an attorney to go over our very simple situation. He quoted us $5000 this included doing AHCD for 500 dollar each, which is essentially free with two witnesses.

    I think for simple paperwork, legal zoom is fine. although if an attorney charged 200 dollars, I would go with that choice!

    Click to expand…

    i have hesitated to comment on this comment, but your comment is right on (this is getting confusing). As much as I admire @craigy (who is on my very short list of consistently respected participants), I have yet to find an E&T attorney in any state (and we’ve checked a few) who is anywhere near this price point. Should I run across such an E&T atty, I would be highly suspicious of the value and experience provided for that fee. What are the strings, for ex? Happy to hear the opposing viewpoint, though, as I feel as though I’m questioning @spiritrider.

    Love you, @craigy!

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #216582 Reply
    Liked by Craigy
    Craigy Craigy 
    Participant
    Status: Spouse
    Posts: 2052
    Joined: 09/16/2016

    I would rather take my chances with a $200 attorney-prepared will than a $200 set of internet forms.

    Click to expand…

    so living in Hawaii we met with an attorney to go over our very simple situation. He quoted us $5000 this included doing AHCD for 500 dollar each, which is essentially free with two witnesses.

    I think for simple paperwork, legal zoom is fine. although if an attorney charged 200 dollars, I would go with that choice!

    Click to expand…

    i have hesitated to comment on this comment, but your comment is right on (this is getting confusing). As much as I admire @craigy (who is on my very short list of consistently respected participants), I have yet to find an E&T attorney in any state (and we’ve checked a few) who is anywhere near this price point. Should I run across such an E&T atty, I would be highly suspicious of the value and experience provided for that fee. What are the strings, for ex? Happy to hear the opposing viewpoint, though, as I feel as though I’m questioning @spiritrider.

    Love you, @craigy!

    Click to expand…

    Well there’s your problem.  😉  Any attorney who holds himself/herself out as an estate planner probably has an hourly rate at or above $200, so you’re not going to get much cheaper than maybe a grand for a very streamlined package.

    The $100 and $200 and $500 wills come from the do-it-all attorneys.  Usually they’re working for themselves, low overhead, one or no employees. The cheap testament is typically either goodwill used as a source of new clients, or simply an extra few hundred dollars that said attorney brought in that day.

    I completely agree, essentially anybody perusing the whitecoatinvestor forum should seek a true expert, even if it means paying a couple thousand dollars.  But for the megacheapskates among us, even at $100 (the cheapest I’ve heard of locally), you’re still getting someone who 1) passed the state bar and 2) is putting his or her law license on the line preparing and reviewing your testament.  I’m sure legalzoom forms have gotten better over the years since I’ve last seen them, but I would be leery of any one-size-fits-all forms meeting the technical requirements for your particular jurisdiction, and generally you are receiving zero guidance regarding the execution of the documents.

    For Drknowsbest, I’d encourage you to keep shopping around.  It usually doesn’t cost anything to get a quote.  You can definitely get to $5k pretty quick, but $500 for a healthcare directive, e.g., is pretty abysmal (you’re typically just dropping names into a form and clicking print).  I don’t believe we even have a price for that, for what that’s worth.

    LEVEL 1 WCI FORUM MEMBER.

    #216707 Reply

Reply To: Legalzone for estate planning

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

Notifications Mark all as read  |  Clear