Is LegalZoom Worth the Cost Savings?
A popular website called LegalZoom advertises top quality legal documents without paying top dollar. The truth is LegalZoom will provide quality documents, but it may not be accurate. LegalZoon will ask a few key questions and then provide the correlating legal document. The problem is you can’t be sure that the document you get will be best suited for your particular situation.
Furthermore, LegalZoom has revealed that 80% of people fill out their forms incorrectly.
With LegalZoom you risk relying on a document that you may not know is incorrect. For example, LegalZoom does not give you legal advice so it will not advise you on whether your new business entity should be formed as an LLC or a Corporation. LegalZoom won’t take the time to get to know you, ask you follow up questions, or make sure that every possible scenario is taken into account for something like an estate plan.
You may save money initially over hiring an attorney. However, the mistakes that could occur by using LegalZoom will be a lot more costly to clean up. Many estate planning attorneys have purchased wills and trusts off LegalZoom in order to examine the quality of the documents. The biggest problem seems to be that the over simplified documents don’t necessarily give you all of the benefits that an estate plan should. Yes, they may avoid probate but they won’t help lower your taxes or provide you with special provisions that ensure that your family is taken care after you pass away.
If you are considering forming a business or setting up an estate plan, do it right the first time by consulting with an experienced attorney.