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A True Story about Hidden Costs of Hiring Robo-Lawyer Instead of a Real Lawyer (LegalZoom, etc.)

7/22/2016

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The thing about robo-lawyer services (online fill-in-the-forms "legal" help) is that, as this not-poor family discovered when their late Dad had used a robo-lawyer to draft his will. Not only did robo-lawyer service lead this man astray, but the "savings" from using robo-lawyer were more than wiped out just from this one mistake -- and that's not likely to be the only problem with this will.

Bottom line: When you use robo-lawyer, you become the only human paying attention to your legal issues and aware of the issues likely to arise -- but aren't those exactly the things you needed help  with in the first place?

When I worked at the Michigan Court of Appeals, the top three most difficult and expensive litigation that I saw -- cases that went up and down through appeals and remands -- were ALL the result of "home brew" estate planning used by people who were trying to save the few hundred or thousands of dollars that would have been appropriate for the estates at issue. 

If you, friends or clients mention a desire to use Legalzoom or another self-help service to draft a Will, remind that person of yet another reason to beware.
 
Guy came to my office yesterday to open probate for dad.
Dad did a Legalzoom will. 2 sons, each gets 50% of the net estate. No big deal.

Elder son nominated as PR. He's appropriate, no conflict with other son.
Estate is worth close to $2million. WILL DOES NOT WAIVE BOND.
 
Cost of Legalzoom? I assume a few hundred.
Cost of a lawyer for the same Will? Maybe $800.
Cost of the bond? Probably $5k.

Penny wise, pound foolish.

Another attorney who saw that story comments that: "Legalzoom has been a boon to my estate litigation practice. Their living trusts are total and complete disasters."

Ask yourself -- if you are not capable of doing your own legal work, how are you capable of determining whether robo-lawyer has done it right for you? Or if there's a hidden time bomb in their documents that you won't discover until it explodes.

That's the problem with professional services like lawyering and doctoring -- the typical layperson has no real way to know how to do what's needed, or even to necessarily know what's needed. Which is why you need to go see professionals who are in your community and who can build a relationship with you, because such people are very interested in NOT having their work cause problems for you.

But robo-lawyer doesn't care about you or whether or not you are harmed by what they provide -- indeed, if you read the fine print of their click-through agreement (the one you clicked through without reading) expressly disclaims that they are even practicing law!

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