Avoid Non-Attorney Practitioners
Trust mills and independent paralegals are actively promoting living trusts and other estate planning documents throughout the United States. They should be avoided when preparing your estate plan; only attorneys have the requisite skill and training to prepare these documents. The following are excerpts from a letter recently sent to a California state senator and assembly member by a California attorney, who like Mr. Koenig limits his practice to estate planning, expressing his concern about trust mills and independent paralegals.
"I am writing with regard to the disreputable practices of independent paralegals and "trust mills" in the area of estate planning, which is my legal practice field. The conduct of non-attorney legal practitioners in this respect is shocking and I believe the legislature should take action to curb it.
"Trust mills, i.e., non-law firm purveyors of living trusts and other estate planning documents, are doing a considerable amount of business in California, as you may be aware. I recently reviewed an estate plan prepared by such a company. The plan included several highly complex documents including a revocable living trust and irrevocable life insurance trusts. The clients, who came to me because they were unhappy with the services they received, told me the company's representative (a non-attorney) had spent a total of a half hour with them prior to the documents being drafted and signed. The clients, who were not U.S. citizens, had no idea what the documents were beyond a vague concept of avoiding probate and estate taxes. The person they dealt with took no time to explain the documents' provisions to them and the entire process was largely a mystery for them. While an attorney had signed a certification that one of the documents "was a living trust," the clients never met or talked with the attorney prior to signing the documents. The total fee for these services was a little under $2000. The documents themselves had serious flaws.
"Independent paralegals openly advertise their services, including living trusts, wills, bankruptcy, and uncontested divorces, as 'affordable legal services.' These paralegals attempt to make disclaimers in their fee agreements with clients to the effect that they provide 'secretarial services' only. In reality they are engaging in the unauthorized practice of law. Furthermore, the fees paralegals have begun to charge are far from 'affordable.'"
On July 18, 1996, an example of the action being taken against such non-attorney practitioners resulted in the California Attorney General and the California State Bar filing a joint lawsuit against the Alliance for Mature Americans, a non-attorney practitioner trust mill, in the Los Angeles County Superior Court. The lawsuit sought an injunction, more than $200 million in restitution, and more than $3 million in civil penalties. The lawsuit alleged that the Alliance for Mature Americans used "scare tactics" and unlawful and deceptive business practices to sell living trusts to senior citizens, some of whom suffered from Alzheimer's and Parkinson's diseases, in order to obtain confidential information to sell these persons annuities. The lawsuit also alleged that the Alliance for Mature Americans engaged in the unauthorized practice of law by training non-attorney salespeople to promote themselves as estate planning experts. In April, 1997 the Alliance for Mature Americans agreed to a settlement of the lawsuit whereby it would make restitution of $1 million, pay a civil penalty of $100,000, and discontinue its sales of estate planning services and living trusts in California. While this case occurred in California, such could also occur in Texas. Only an attorney licensed to practice law in Texas has the requisite knowledge and skill to navigate the rules and guidelines unique to Texas wills and trusts, and only a Texas attorney will communicate with you to explain these rules and guidelines before you sign your name to any document.
If you have been victimized by a non-attorney legal practitioner, you are encouraged to contact the Texas Attorney General's Office or the State Bar of Texas, as well as your local District Attorney's office, elected federal and state representatives, the Better Business Bureau, and any appropriate governmental elder abuse or fraud investigatory agency.