Living Trust Scams

Living trust scams have recently been on the increase. In fact, in several states, authorities have arrested and prosecuted living trust scam artists. They are most frequently charged under the statutes of Unfair and Deceptive Practices and Unauthorized Practice of Law.

Some of these scam artists are criminals out to steal your identity by getting your personal information. With that kind of information, they can clean out your bank account and ruin your credit.

Many others are more like the old 'Medicine Man shows' of yesteryear. These predators promote living trusts as though they are a cure-all to people who don't need them and don’t know enough to realize that. Usually, the real aim is to sell annuities, insurance and similar products that pay them a commission and they don't care much how they do it.

Pay close attention to this advice – KEEP YOUR WALLET IN YOUR POCKET!!

Regrettably, we live in a world with many con artists make a living selling unnecessary and even dangerous things to people. Some of these scam artists have discovered they can sell living trusts to the unwary as a 'magic bullet' that will fix whatever ails them.

Probate laws, estate taxes and estate planning concepts can be fairly complex. As a result, the general public is vulnerable to being sold something (a living trust) they don’t understand.

There are two facets to the danger.

First of all, a lot of people are convinced to buy living trusts they have no need of.

Second, maybe even worse, a lot of people purchase a living trust that won't do what they were led to believe it would.

So, what can you do about it?

1. Be on guard against salesmen who use high pressure sales strategies to get you to buy a living trust. This is not something you want to make a snap decision about. Before making this kind of decision, take the time to think about it and talk to people you trust.




2. When you receive calls from telemarketers or direct mail, be suspicious. Something else to be wary of is 'free' seminars and people going door to door as these are methods used by living trust con artists.




3. Watch out for pre-printed forms. Don't sign them without checking them out carefully. It is possible that there is a scam involved. Very rarely would such a pre-printed form fit your circumstances. You could end up worse off than if you had done no estate planning at all.




4. Watch out for scammers using sound-alike names of well-know, respected non-profits like the American Association of Retired Persons (AARP).




5. Be careful of people who describe their credentials in general terms like “estate planning specialist” or “certified living trust specialist.” Such titles could mean just about anything. The only legal advice you should listen to is from a licensed attorney. Because it is a legal document, a living trust can only be drawn up by an attorney in most states. So talk to an attorney before signing anything!!

By no means am I saying “don’t get a living trust.” Living trusts can be valuable estate planning tools for many people. Others, however, simply don’t need them. The bottom line is it is important to educate yourself about living trusts before you decide whether to get one.


To find out more about the advantages and disadvantages of living trusts, visit Advantages of a Living Trust and Disadvantages of a Living Trust.