Living trusts are helpful estate planning tools that allow you to organize your assets and their distribution after death. Some could benefit significantly from these options, but they are not for everyone. Others might have more losses than benefits if their estate does not fit the specifications optimal for living trusts.
Firms or individuals using misleading promises of benefits and savings through this trust type might be from living trust mills. These entities deliberately misinform potential clients and pressure them to make a purchase. Then, they will collect clients’ sensitive details and offer other financial products using the same high-pressure sales tactics.
Products from these sellers are often unsecured and lack proper documents, potentially putting clients in worse situations later. These fraudsters usually approach vulnerable elders but can target anyone interested in these products.
Taking measures to avoid fraudulent living trusts
Authorities know how widespread these living trust mills are and advise consumers to report suspicions immediately. They can also take these preventative measures to avoid falling prey to these fraudulent schemes:
- Only discuss estate planning options with legitimate attorneys
- Avoid too-good-to-be-true products and services that guarantee benefits
- Remain calm when pressured to make a purchase
- Take time to think and consult others before deciding
- Read documents carefully and show them to a lawyer before signing anything
Even if you feel confident about making the purchase, it is best to learn about any cancellation rights and other terms protecting you from potential losses in the future.
Choosing the right estate planning tool
Living trust mills might promote this trust type as the best choice, but this is false. Other tools might be more appropriate based on your estate’s size and details. Also, you might require unique features, which you might only consider after speaking to an attorney. Before making any purchases, it is best to seek legal counsel to determine what would work best according to your circumstances and wishes.