Virtual Law Practice

Tag: estate planning

  • Avoiding the Unauthorized Practice of Law (UPL) in other Jurisdictions with a Virtual Law Office (Part Two)

    Part I of this post on the unauthorized practice of law in other jurisdictions addressed the following questions:  How does a virtual law practice avoid UPL in other jurisdictions? and If a website is accessible internationally, then how can a VLO be limited to provide legal services only in the state(s) in which the attorney is licensed?

    How is it clear with a Virtual Law Office (VLO) when the attorney/client relationship is established?

    An online client receives adequate notice through his or her individual homepage in the VLO as to the different statuses of the case.  Notice is provided to the online client when the attorney has reviewed the client’s question and posted a response, when the attorney has accepted or declined representation, when the attorney provides details of the scope of representation, and when the attorney has completed legal representation and is formally closing the online case file.

    The attorney/client relationship begins when the online client has registered on the VLO and requested legal services from the attorney.  The client is notified when the attorney has reviewed and responded to his or her legal question.  Then the client is asked follow-up questions by the attorney or is presented with the price quote or terms of representation for the online client to accept or decline.

    Through the VLO, the attorney has several options to define the scope of representation, including providing clients with a traditional written retainer letter uploaded to the system, writing out personalized messages to each client and requiring that the client accept a customized clickwrap agreement solidifying the terms of the attorney/client relationship, or using both traditional and online clickwrap methods.  Basically, the same procedures for establishing attorney/client relationship and defining the scope of representation that are used in a traditional law practice can be integrated into a VLO.

    I would argue that using the technology actually provides clearer notice to the clients of the establishment of the attorney/client relationship and the scope of representation. It may also do a better job of keeping the clients informed of their case status than occurs with a traditional law practice.  One of the biggest malpractice complaints from clients is that their attorney does not communicate effectively with them regarding their case.  The VLO handles so much of the process for the attorney automatically. It also gives clients the ability to check for themselves the status of their file and to review their previous discussions with the attorney.

    Is it UPL in another jurisdiction to draft a legal document, such as a Will, for an online client who is a resident in another state?

    It is my understanding that it would constitute the unauthorized practice of law in another jurisdiction if an attorney used his or her VLO to draft a legal document that pertained to the laws of another state where the online client was a resident but where the attorney did not have a license to practice law.

    However, if the attorney operating the VLO were partnering with attorneys or legal assistants on his or her VLO who were licensed in other jurisdictions, then this would be different.  For example, a virtual paralegal could work on the VLO to draft a Will or other estate planning document for a client a jurisdiction where the virtual paralegal was familiar with that state’s estate planning laws.  The virtual paralegal would then flag the document for review by the attorney on the VLO who was licensed in that online client’s state.

    My understanding is that the review and approval of that legal document by the attorney licensed to handle that state’s laws would permit the virtual paralegal to complete the transaction for the online client without it constituting UPL in another jurisdiction.  You can see through this example how a solo law practice taken online with a VLO could grow very quickly across multiple jurisdictions if well planned out.

    How does the issue of UPL in other jurisdictions relate to legal document automation software?

    Some attorneys are choosing to provide legal services online by using document automation software, similar to the way that LegalZoom and similar companies provide legal documents across jurisdictions.  There is a separate issue here which pertains to assisting a nonlawyer (the software vendor or legal form provider) in the practice of law.  If this form of providing legal services interests readers, I recommend that they check out Richard Granat’s recent blog post regarding the automated delivery of online legal services, or online document assembly, as it relates to UPL.

    VLOTech is preparing a feature for the first of next year that allows attorneys to create forms for clients on the VLO to fill out and send to the attorney securely on the system in addition to the existing VLO forms of communicating online with the client.  The forms could be anything from estate planning and family law questionnaires to customized client intake forms based on the attorney’s virtual law practice areas.  Since the forms would be generated by the attorney individually for the VLO and not pre-packaged from a vendor, then it should avoid the UPL issue completely.  It will be interesting to see how attorneys practicing law online will choose to integrate this additional feature in their virtual law practice.

    Online Resources Regarding UPL

    ABA Model Code, Rule 5.5 Unauthorized Practice of Law; Multijurisdictional Practice of Law

    State by state comparative analysis of UPL – Cornell University Law School, American Legal Ethics Library

    BTW:  By no means do I claim to be a legal ethics expert.  I practice law online from my VLO and work with other attorneys nationwide to set up VLOs.  These issues interest me and I love hearing and learning from other’s experiences.  If anyone has specific ethics decisions from their state bar pertaining to UPL in other jurisdictions and online law practice, I’d love to hear about it.  Please share!

  • Client Building for the VLO

    Building a client base for a vlo requires out of the box thinking. I’ve found that networking works best when I use other popular online networking mediums that are frequented by the online public, my potential clients.

    The no-brainer is advertising my vlo on free lawyer referral websites or in free classified ad sections like craigslist. These methods do not necessary result in a large number of new clients, but it drives people to the vlo and builds name recognition for the practice and the vlo concept in general. It’s on my weekly to-do list.

    The most enjoyable method of networking for clients for me is offering free online educational posts in online forums. Right now, I only have the time to be an active member of one forum, but it would be good if I could add a new one every six months and keep an active presence in each. Forum posting allows you to advertise your business by posting your name, your profession, your vlo and website link to your vlo. Viewed by several hundred forum members a week, this is a great way to build a reputation for the vlo and its services.

    The key to posting in forums that are made up of lay people is to write your message in non-lawyer terms and make it understandable from their perspective. Of course, it should go without saying that the other thing to remember is the bar’s advertising rules and make sure that anything I write stays in compliance with those. I keep it general enough to not be providing specific legal advice to any one person and explain that everyone has different circumstances. Most of the readers will PM me with specific legal questions if they want to ask a question related to their families.

    For starters, I am a member of WilmingtonMommies!, a local branch of a nationwide conglomerate of forums created by mothers for mothers. I asked the permission of the forum managers first and explained that I intended this to be educational, not an advertisment for my services. The posts generated some good dialogue about Estate Planning among the mothers in the forum, of which there are close to 500 members all of whom seem to be very active. (As a mother myself, I also post comments and start threads on the forum that are unrelated to the law.) I also offered the members of the forum a small discount on my services should any of them decide to retain me to handle their estate planning services. Even if I never received a client from the educational thread, I’ve provided useful information to the group and have added some goodwill to my vlo’s name that could pay off in the future.

    I will post the first part of the educational estate planning thread below for reference. I intend to write more of these for the forum on other topics related to estate planning law in N.C.

    New Year’s resolutions often include organizing important family business. So, with the kind permission of the WM managers, I am posting this educational thread about estate planning, starting with Wills. I want to start a dialogue that you all can continue at home with your families. I will also post a helpful checklist for everyone. If anyone wants to ask general questions, feel free. Knowledge = power and I want all us mommies empowered!

    This is just educational, general legal advice so if you want to have documents written for your family, I would strongly recommend communicating with an attorney rather than trying to do it yourself. I have experience handling estate administration so I’ve seen both the drafting side and the probate side. Be wary of purchasing estate planning forms from office supply stores or from places like legalzoom.com. If a licensed NC attorney is not tailoring these documents to your specific needs, then it can have serious consequences. I’ve actually had to fix a few of these fill-in-the-form Wills for clients and in the end it costs them more in the long run. Just a quick tip before getting down to business.

    Last Will and Testament Who Needs One?

    Anyone who has children. You should name a primary guardian and secondary guardian so that your children will be cared for in the event that something should happen to both you and your spouse.

    What Could Happen if You Don’t Have a Will?

    If you and your husband don’t have a Will and both of you pass away at the same time, your children may be placed into the care of the New Hanover Department of Social Services until the court system can determine who would be the appropriate guardian for them. The court has the final say in the matter but gives strong weight to the directives of a Will.

    How Do You Name a Guardian in the Will?

    Your Will tells the court who you want to raise your children in the event of the death of both you and your spouse. Your Will also tells the court how you want the assets of your estate to be distributed to your children’s guardian for the purposes of their health care, education, and overall well-being. If you and your spouse pass away and you have named a guardian in your Will, your child may remain safely with that individual until he or she is formally awarded guardianship by the court. I have a checklist I made up called “How do you Choose a Guardian” which helps parents discuss this emotional decision. If anyone is interested in it as well, just let me know.

    What is a Testamentary Trust for Minors and Why is it Important?

    The common misunderstanding with trusts is that you and your husband must have a large, multimillion-dollar estate in order to have a testamentary trust. This is not true. Testamentary trusts are a smart way of protecting your children and any inheritance they might receive, no matter the size, and it provides their guardians with any funds they may need to care for your children. The Will sets up a testamentary trust for your minor children. This trust is set up by the executor of your estate when the Will is probated.

    A testamentary trust describes how and when the funds from your estate should be distributed to your child. For example, you could write the trust so that half of estate is distributed at age 21 and the other half at age 30. The trend has been to set the age for when the children are older and presumably more responsible so that the children will not come into a sum of money at the age of 18 or before they may be mature enough to responsibly manage the inheritance. You may also design the trust so that the trustee is directed with specific instructions to distribute funds to the guardian for the care of your child, such as for private school tuition or study abroad.

    What Does an Executor/Executrix Do?

    Naming the Executor/Executrix of your estate ensures that your spouse or the named guardian of your children will know who to turn to during a time of grieving. The Executor will be responsible for the administration of your estate. He or she will take your Will to the Clerk in the Estates Division of the county in which you were a resident upon your death. The Executor/Executrix will set up the estate administration, the testamentary trust and work with the guardian and trustee and Clerk of Court to ensure that the plans written in your Will are handled properly.

    By naming an Executor/Executrix in your Will, your loved ones may be able to administer your estate more efficiently and potentially with less expense than if you had not appointed anyone. If you do not have an appointed Executor/Executrix named in a Will, when you pass away, the Clerk of Court will appoint an individual to handle your estate. Usually this individual is the first family member who shows up at the Clerk’s office requesting information regarding intestate (without a Will) administration of the estate.

    What are Specific Bequests?

    In your Will you may make specific bequests of property to your children or other loved ones. For example, you may want to leave a family heirloom, your jewelry, or a valued stamp collection to your child. Making these specific designations may help prevent interfamily arguments regarding division of your personal property.

    Will your Family Know What You Wanted?

    In the Will you may describe how you would like your family to remember your life through a funeral, memorial, cremation, burial or other arrangements. You can designate specifics such as the cemetery where you would like to be buried or the church in which you would like a memorial service to be held. Having your wishes written down takes some of the stress of having to make those decisions off of grieving loved ones. Oftentimes these decisions have to be made quickly by the surviving spouse or your children. This section of the Will helps your family members follow your wishes.

    Many people also use this section of the Will to write special messages for their children, to tell them they love them or to impart words of wisdom or other family traditions that they want them to remember. This is a very personalized section of the Will and can be as simple or specific as you would like.

    What are Sweetheart Wills?

    If you are married, you and your spouse should write “sweetheart wills,” or Wills where the provisions mirror each other or work together for the benefit of the family. If you have an estate that you estimate to be larger than $2 million (2008 Federal estate tax exemption amount), I would recommend more complex estate planning methods in addition to a Will that might help with the impact of federal and state taxes.

    For most of my clients, simple estate planning is all that is necessary given the size of their estates and the fact that they will most likely be updating their Wills several times later on in their lives.

    O.k. that’s all for now. I hope this is useful and wasn’t too long a post. Everyone let me know your thoughts. Obviously, I am not the only attorney around to choose from, but I’m offering a special discount on my estate planning package to any mommies on this forum. Just PM me or go to my online law office.

    Stephanie – Proud mother of DD (1/06). Happily married to DH since 2001.
    Attorney practicing law online from home at http://www.kimbrolaw.com

MENU