Does My Financial Planner or Retirement Consultant have Legal Authority to Prepare My Will and Trust?
Typically, a financial planner and retirement savings consultant does not have the legal authority to prepare legal documents such as a Will or Trust unless they are also licensed attorneys with expertise in estate planning.
Preparing legal documents requires a deep understanding of the relevant laws and regulations governing wills, trusts, and other estate planning matters. If a financial planner does offer these services, they should have the necessary legal credentials to do so, such as a CLDP (Certified Legal Document Preparation) license, or a license to practice law.
A financial planner can assist in estate planning by providing advice on the financial aspects related to estate planning. This may include helping you understand the financial implications of different estate planning decisions, identifying appropriate investment vehicles, and coordinating with your legal team to ensure your financial goals align with your estate planning objectives.
When they offer to prepare your legal documents, such as a Will and Trust, hold them accountable by asking if they are also a licensed attorney, or at the very least, if they have a CLDP (Certified Legal Document Preparer) license.
In most cases, they will say no. Therefore, it is best to consult a qualified financial planner for your stocks, bonds, mutual funds and other investments, and conversely, an attorney or an experienced Certified Legal Document Preparer (CLDP) when creating or updating your estate plan. The financial planner can help you optimize your financial strategy, while the CLDP can ensure that your legal documents comply with applicable laws and reflect your wishes accurately.
Among the essential legal documents that form a solid estate plan are the Will and Trust. While some individuals may consider using a financial planner or retirement saving consultant for this purpose, opting for a Certified Legal Document Preparer (CLDP) can be a more prudent choice.
The unauthorized practice of law is addressed under the law. This statute makes it illegal for individuals to practice law, provide legal advice, or prepare legal documents without being licensed to do so. For example, Arizona code is: Arizona Code of Judicial Administration ACJA § 7-201(A)
This code has the following purpose: “The supreme court has inherent regulatory power over all persons providing legal services to the public, regardless of whether they are lawyers or nonlawyers.
The court recognizes, however, that the need to protect the public from possible harm caused by nonlawyers providing legal services must be balanced against the public’s need for access to legal services.
- Protect the public through the certification of legal document preparers to ensure conformance to the highest ethical standards and performance of responsibilities in a professional and competent manner, in accordance with all applicable statutes, ACJA §§ 7-201 and -208, and Arizona court rules; and
- Result in the effective administration of the legal document preparer program.
A Certified Legal Document Preparer undergoes rigorous training and must meet stringent requirements to become certified. They are well-versed in the state’s laws, regulations, and requirements regarding estate planning documents, including Wills and Trusts. Unlike a financial planner, a CLDP’s core focus lies in assisting individuals with legal documentation, ensuring that your Will and Trust are drafted accurately without overlooking crucial legal details.
With a CLDP, there is Cost-Effectiveness
Hiring a lawyer to create a Will or Trust can be expensive, with legal fees adding up quickly. On the other hand, CLDPs typically offer their services at a fraction of the cost of hiring an attorney. By choosing a Certified Legal Document Preparer, you can achieve substantial cost savings without compromising on the quality and validity of your estate planning documents.
You get Tailored and Personalized Service
While financial planners are undoubtedly valuable in the realm of financial advising, they may not possess the comprehensive legal expertise, not to mention the legal certification required for creating customized Wills and Trusts. A CLDP, however, is solely focused on legal document preparation, which allows them to devote more attention to understanding your specific needs and preferences. This ensures that your Will and Trust accurately reflect your wishes, making certain that your assets are distributed according to your desires.
You will have Unbiased Guidance
While financial planners and retirement saving consultants provide valuable financial advice, they may have a vested interest in certain investment products or services. On the contrary, a Certified Legal Document Preparer is an impartial professional focused solely on assisting you with your estate planning needs. This impartiality ensures that you receive unbiased guidance, helping you make decisions solely based on your best interests.
In conclusion, when it comes to creating a Will and Trust in the State of Arizona, hiring a Certified Legal Document Preparer offers numerous benefits. Their specialized legal expertise, cost-effectiveness, personalized service, efficiency, and compliance with state laws make them a valuable resource for individuals seeking to protect their assets and secure the financial future of their loved ones. By choosing a CLDP, you can rest assured that your estate planning documents are meticulously prepared, providing you and your family with the peace of mind you deserve.
