Avoid Living Trust “Trust Mill” Scams

Avoid Living Trust “Trust Mill” Scams

How many times have you opened the newspaper and a flyer falls out that advertises a “free living trust seminar”? They often offer a free breakfast or lunch and hold the meetings at a local restaurant.

These seminars are often organized by non-attorneys whose primary purpose is to sell a living trust to everyone who attends (regardless of whether a trust is needed), and to follow-up with the sale of annuities to the attendees. These are high-pressured events with many follow-up telephone calls to each attendee who declines to purchase the trust package after receiving the free breakfast or lunch.

You already know: there is no free lunch. The organizers have spent money to purchase the newspaper advertisement, rent the meeting room, and pay for the meals. They need to recoup their investment and make a profit. Thus, they put the fear of God into each attendee by making them believe that they must have a trust or else their home and life savings are in jeopardy.

To avoid the accusation that they’re practicing law without a license, they often contract with an attorney who is to “supervise” the creation of the trust. In reality, that attorney never speaks or meets with the clients.  Rather, the attorney only developed a “checklist” that the non-attorneys can follow in order to create a boilerplate trust document.

Not everyone needs a trust. The two primary purposes to establish a trust are for tax avoidance (where the estate is substantial) and to transfer title to property in order to avoid having to “probate” an estate. When these two goals are not involved, a trust may not be necessary. Again, the organizers of these seminars are not concerned with whether or not you need a trust. Their goal is to make a profit.

Many times, after a trust package has been sold at one of these free seminars, the so-called “estate planning representative” (i.e., non-attorney) then makes a visit to the clients in order to review the trust and obtain the required signatures. However, that representative also has an ulterior motive. That person is now armed with all of the client’s financial information (remember – there is no attorney-client confidential relationship) and makes a sales pitch to sell them an annuity. The annuity may not be at all appropriate as a financial investment; however, the annuity salesperson doesn’t care because he stands to make a hefty commission on the sale.

This sort of high-pressured sales tactic continues to be used against unsuspecting potential clients who thought they were simply going to spend an hour or so at a free lunch in order to gather general information about living trusts. They had no idea that they would be pressured into not only purchasing a trust package, but then investing their life savings into an annuity that makes no financial sense to them but does line the pocket of an unscrupulous annuity salesman.

Remember: There’s no such thing as a “free lunch”.  Avoid the “trust mill” scams at all costs.

Low Cost Alternative for Those Who Need a Living Trust

This won’t get you a free lunch, but it can provide you with a living trust that’s properly prepared, legally enforceable, and may save you a thousand or more dollars in attorney fees.

Interested?

Good.  But before you consider buying a living trust at a fraction of the cost, first read through all of these pages on Living Trust Advocate.  This will give you more information than any attorney you hire will probably provide you with.

Armed with this information, you’ll be fully educated on the mechanics of living trusts, and all of the why’s and how’s.

Then, you can make an informed decision and determine whether a low cost alternative is right for you.  After you’ve read all the informative pages, CLICK HERE.