Relying on experienced professionals is very important, but it is also important to be aware of each type of professional’s limitations.
Supporting Characters
I’m not even going to address the legal acumen of notaries, paralegals, and that guy you know who used to work at the courthouse. They have no business giving you legal advice, period.
CPAs and Tax Professionals
As an example, it is very common for tax professionals and CPAs to advise people regarding LLCs. HOWEVER, they cannot give legal advice. It is common for people to tell me that their tax person told them they “don’t need” an LLC or living trust.
I have to hope these professionals are explaining that there aren’t any TAX benefits to forming an LLC or trust for that client. Hopefully it was a misunderstanding (though even that is a concern). One of the main benefits of a properly formed, organized, and operated LLC is protecting one’s personal assets from business liability. Some of the main benefits of living trusts include avoiding probate and privacy. Taxes often play no factor in a person’s decision to utilize these tools. Any non-attorney who says you don’t need an LLC or trust is treading in dangerous territory. There are very important factors on which they are not qualified to advise.
Financial Advisors
Likewise, that popular financial advisor you listen to on the radio or even your own advisor can provide valuable insight on investments, insurance, and retirement planning. What type of estate planning you need or what should be included is another matter. They may be able to suggest topics to discuss with an estate planning attorney (trusts for minor/incapacitated beneficiaries, Trusts vs. Last Wills, tax planning, creditor protection, etc.). However, only a licensed attorney who is experienced in probate and estate planning law is equipped to properly evaluate one’s estate planning needs on the legal side. There are times when tax or financial goals may conflict with practical realities of an individual’s situation or preferences.
Beware of any institution that tries to insert themselves in your documents. Free documents prepared by an attorney with whom you never interact is also a red flag.
Pro tip:
Good professionals will refer you to OTHER professionals for advice and services outside of their area. A CPA, financial advisory, AND estate planning attorney is all part of the puzzle of a complete estate plan. Some people need additional professionals, depending on their specific circumstances.
