• Skip to navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

American Academy of Estate Planning Attorneys

AAEPA, Inc

Find a Member Member's Login
Call Today (800) 846-1555
  • Membership
    • Membership Membership
    • submenu
      • Why Join?
      • Member Requirements
      • Become A Member
      • Meet the Team
  • Estate planning software
  • Education
  • Practice management
    • Practice management Practice Management
    • submenu
      • 11 Essential Systems
      • Coaching
      • Law Firm Marketing
  • Resources
    • Resources Resources
    • submenu
      • Live Training
      • Blog
  • Contact Us

Paying for Your Mistake: What Estate Planning Attorneys Should Know About Drafting Errors

Home » Client Services » Paying for Your Mistake: What Estate Planning Attorneys Should Know About Drafting Errors

Good lawyers work diligently to uphold the highest standard of care in working with clients. However, sometimes things slip through the cracks, and we make mistakes. While in most cases we can correct any issues without harm, there may occasionally be a major error that goes unnoticed for a number of years.

Such was the case with William Radaz, Jr., an elder law attorney hired to draft an irrevocable trust for Ted and Barbara Holland, a married couple. The trust should have instructed that, should Ted die first, his assets would go to his wife for life, and then would transfer to his daughter from his first marriage, Ann, upon his wife’s death. Instead, the attorney accidentally drafted the irrevocable trust so that upon Barbara’s death, the money would be split equally amongst Ann, as well as Barbara’s own five children from a previous marriage. This drafting error meant Ann, who should have been entitled to the full amount of the remainder of the trust (valued at $952,218 at the time of Ted’s death), would only be able to collect 1/6 of the amount she was supposed to collect.

Upon Ted’s death, Ann sued the attorney who drafted the trust. Using an amount derived from a CPA (who calculated Barbara’s life expectancy, the annual growth of Ted’s assets, and the amount of Barbara’s withdraw), her attorney sought relief for $567,423.

Radaz argued that it would be too difficult to accurately calculate Ann’s proceeds from the trust, and the court agreed. However, it also did not think Radaz should live with a potential malpractice suit hanging on until the time of Barbara’s death. It found the CPA’s solution reasonable, and therefore ordered the attorney to pay $472,872 in damages for his mistake in drafting the trust.

Unfortunately, the sum caused Radaz to seek bankruptcy, which thereby discharged his debts and released him from his obligations to Ann.

The financial burdens associated with bankruptcy are real, and Radaz undoubtedly suffered a hit, but it seems like Ann was the real loser in this case. Originally entitled to a sum as high as $567,423, she will now only receive 1/6 of that upon Barbara’s death.

This case makes for a cautionary tale to lawyers and families alike – pay close attention to the words of irrevocable trusts, wills and other unchangeable documents, or you may be left paying the price for unforeseen mistakes.

Sanford M. Fisch
CEO & Co-Founder
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (800) 846-1555
www.aaepa.com

  • Author
  • Recent Posts
Sanford Fisch
Sanford Fisch
Sanford Fisch
Latest posts by Sanford Fisch (see all)
  • Aging Parents and Estate Planning - March 12, 2018
  • Some Things Are Not Always as Expected - May 30, 2016
  • The Bagel Shop – Selling More Than Just Bagels - May 23, 2016
SHARE

Primary Sidebar

Subscribe to our blog

Recent Posts

  • Turning Stalled Out Goals into Actions
  • What Makes a Will or Trust Invalid
  • Ultimate Social Media Cheat Sheet: Character Limits & Best Days/Times to Post
  • Understanding Tax Apportionment Clauses
  • Do You Thank Those Behind the Scene?

Categories

  • Academy Girl Friday (33)
  • Client Services (238)
  • Coaching (33)
  • Consumer Advantage (3)
  • Counseling (21)
  • Elder Law (5)
  • Estate Planning (918)
  • Estate Planning Documents (5)
  • Estate Planning Education (199)
  • Financial Analysis (3)
  • Financial Services (1)
  • General (19)
  • Law Firm Marketing (281)
  • Law Firm Net Revenue (7)
  • Law Firm Staffing (99)
  • Law Firm Technology (45)
  • Law Firm Web Tips (185)
  • Leadership (191)
  • Legal Education (644)
  • Marketing Tools (2)
  • Medicaid (1)
  • Member Services (1)
  • Owners Compensation (1)
  • Peak Performer Focus (1)
  • Practice Building Calls (1)
  • Practice Management (495)
  • SEO/Social Media Support (3)
  • Software (6)
  • Strategic Planning (9)
  • Uncategorized (15)

Footer

logo of American Academy of Estate Planning Attorneys

About Us

  • Meet the Team
  • Site Map
  • Legal Notice
  • Privacy Policy

Explore Our Services

  • Coaching
  • Estate planning software
  • Events
  • Legal education
  • Marketing
  • Web and SEO

Keep in Touch

Mon-Fri

9444 Balboa Ave. Suite 300

San Diego

(800) 846-1555

info@aaepa.com

Take Back Control of Your Business and Your Life

+

footer section | American Academy of Estate Planning Attorneys

© 2022 American Academy of Estate Planning Attorneys, Inc All rights reserved.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent. Don't sell my personal information.
Cookie Settings Accept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
Save & Accept