One of the most frequent questions we get is “what’s the difference between document preparation and legal advice?”
This article will go into detail about these definitions so you can better understand which option might be best for your needs!
ProDocs LLC is a document preparation service for Wealth Management Accounting (WMA) clients seeking legal information and assistance in organizing successful asset protection and estate planning.
What Makes ProDocs LLC Essential to WMA Financial Planning?
ProDocs LLC works closely with WMA as a document preparation service. The overarching goal of WMA is improving clients’ wealth by providing individualized tax reduction planning strategies. These strategies will coordinate with a client’s individualized needs in estate planning, asset protection, and investment management.
One of the documents ProDocs helps create, along with the estate documents and Family LLC, is the Operating Agreement. An Operating Agreement of an LLC is its operating rules, defining the entity’s daily activities and procedures. The Operating Agreement proves to be an effective tool in ensuring that proper asset protection and tax reduction planning strategies are in place. In addition, they function as the centerpiece of long-term estate planning. Our advisors need these tools to develop creative solutions and options otherwise unavailable to clients.
Operating Agreements can allow for incredible flexibility; however, the language must be exact for each unique case to ensure the intended effect. ProDocs, in conjunction with WMA, will service clients with the proper advice, language, and financial structuring they need to achieve their goals. With the proper Operating Agreements and experienced trusted advisors working together, WMA can deliver unparalleled results in enhancing our client’s wealth.
What Can a Document Preparation Service Provide?
Our document preparation service can complete legal documents when supplied with all the required information from the client. With completed pre-approved forms, our document service can provide that information to our team members whenever necessary. These team members may include CPAs, financial advisors, bookkeepers, stockbrokers, and other trusted resources.
Document preparation services may distribute non-specific legal information to the public. This distribution of general legal information is different from imparting specific advice to a client on a particular legal matter or providing a legal opinion.
Legal information is generalized and not unique to a client’s situation. It does not recommend a strategic course of action. For example, we may provide clients with available options but cannot suggest which course of action to take. It may inform an individual of appropriate forms or general information about what to include in a statement of facts. Remember, however, that as legal document preparers and not practicing attorneys, they cannot suggest specific facts and information in completing the legal forms.
How Does This Service Differ from Legal Advice?
Legal advice is specific to the unique needs and circumstances of each client. This advice offers an approach tailored to the client’s factual situation and is much more detailed than the general advice appropriate for all persons with the same issue. Dispersing legal advice constitutes the legal representation of a client or their family in an attorney-client relationship.
Document preparers do not practice law. They cannot represent a client in court. They cannot suggest what a client should do in a particular matter or make predictions about how legal issues might proceed. They cannot give legal advice. They cannot advise clients on specific legal questions about legal rights or remedies. If our client has a complicated or unique situation, we will inform them that an attorney’s representation is required. We will refer clients to attorneys who are experienced working with ProDocs LLC and have demonstrated expertise in areas of practice relevant to our clients.
There are tasks for which there is no substitute for an attorney, such as representing a client’s family or providing legal advice about that client’s specific situation. We highly recommend that clients pose any specific questions to a licensed attorney. Preferably an attorney at our recommendation who is experienced with a history of success in solving the client’s specific problem.
