Legal Question in Bankruptcy in California
The firm we used for preparing our trust, will, etc. has applied for bankruptcy. How should we proceed? Are the documents valid, though the firm will not be
representing us when needed? Can we get some of our $20,000 fee returned?
This is a lot of money for us to lose, as well as the security we had presuming our wishes we would be taken care of when we have passed.
I selected "bankruptcy law", but not sure if this is the correct category since I am
not applying for such.
1 Answer from Attorneys
Take a look at your retainer agreement. If the funds you paid to the attorneys were used to create your estate plan, and they did so, then their representation of you is complete. If they promised to do anything further, then you have reason to be concerned. (Usually, attorneys are only paid for preparing the estate plan. There's usually no obligation on either side to assist with probate.)
You should speak with the attorneys to determine whether the firm will remain in business, what will become of your legal file and whether it will be passed on to the attorney who prepared your estate plan if the law firm should dissolve, etc. Of course, if some of the funds were paid in anticipation of helping your heirs deal with your estate, then you might make a claim in BK court for a refund.
If the firm is dissolving and you cannot receive any assurances from the law firm, you should take possession of your estate planning file from the law firm and deposit it with another attorney. In any case, you should keep your will and trust documents in a safe place that's easily accessible to your heirs.