Posted on: 21st May, 2007 07:22 pm
what are living trust scams which is affecting more of our senior citizens?
Some living trust salespersons charge senior citizens thousands of dollars for what actually are pre printed forms. Plus they are not provided guidance on how forms are to be filled and executed or how the living trust is to be funded.
Oftentimes, these senior citizens are left out and asked to consult their personal attorneys which may such senior citizens don't do and are left without any effective estate plan.
Oftentimes, these senior citizens are left out and asked to consult their personal attorneys which may such senior citizens don't do and are left without any effective estate plan.
Welcome Wolleson.
Some of the common living trust scams widely practiced are;
Some of the common living trust scams widely practiced are;
- Inflate Probate costs and length of probate:
There are some living trust companies which try to inflate the cost of probate and even the length of the process. You can avoid such hassles if you are aware of the state laws and practices on probate in your state. You can approach the register of Deeds in your state or a local attorney so that you come to know what legal steps can be taken in this regard.
- The trust offers tax advantages:
It is a common misconception that such trusts provide tax advantages. But in fact, these do not have effect on your taxes.
- Living trust property cannot be taken over by lender:
There goes a misconception that if your property is included in a trust, it cannot be taken over by creditors. But in fact, a living trust can in no way protect your property from creditors.
These living trust scammers often misguide senior citizens into things which are not correct.
One such example is about the attorney expenses when their estate has to go through the probate process. They would try to convince the person that creating the living trust would be better as probate is not involved and the high attorney cost can also be avoided.
Many such scammers would be telling that attorneys charge as much as 3 to 10% for probating the estate while actually an attorney most likely would be charging his fee on an hourly basis.
Miller
One such example is about the attorney expenses when their estate has to go through the probate process. They would try to convince the person that creating the living trust would be better as probate is not involved and the high attorney cost can also be avoided.
Many such scammers would be telling that attorneys charge as much as 3 to 10% for probating the estate while actually an attorney most likely would be charging his fee on an hourly basis.
Miller
I would like to share some facts about such scams that are occurring in Arizona.
Most often during free informational seminars these living trust "mills" target senior citizens and use scare tactics & misrepresentations for selling their services.
Salespersons representing them refer themselves as estate planning experts or certified trust advisors having no training or qualifications in estate planning or taxes but as Arizona does not regulate selling of living trusts they cannot be tracked properly.
Unfortunately, these salespersons are able to sometimes pressurize senior citizens into purchasing living trust kits which they may not need or want which costs $1500 or more.
So senior citizens need to be wary of such salespersons telling them that such a kit will solve all of their estate planning problems.
They should compare the prices of these kits against the costs of hiring an attorney to provide the same services before purchasing the kits.
Senior citizens should also call the Attorney General's Office, if they suspect that a salesperson is using questionable or unlawful means to sell living trust kits to them.
Niicss
Most often during free informational seminars these living trust "mills" target senior citizens and use scare tactics & misrepresentations for selling their services.
Salespersons representing them refer themselves as estate planning experts or certified trust advisors having no training or qualifications in estate planning or taxes but as Arizona does not regulate selling of living trusts they cannot be tracked properly.
Unfortunately, these salespersons are able to sometimes pressurize senior citizens into purchasing living trust kits which they may not need or want which costs $1500 or more.
So senior citizens need to be wary of such salespersons telling them that such a kit will solve all of their estate planning problems.
They should compare the prices of these kits against the costs of hiring an attorney to provide the same services before purchasing the kits.
Senior citizens should also call the Attorney General's Office, if they suspect that a salesperson is using questionable or unlawful means to sell living trust kits to them.
Niicss