Living Trust Scam

Increasingly, senior citizens are being targeted by living trust "mills" which use scare tactics and misrepresentations to sell their services, often during free informational seminars. Salespeople representing these mills commonly refer to themselves as "certified trust advisors" or "estate planning experts." Arizona does not regulate the selling of living trusts, so salespeople do not need to have qualifications or training in estate planning or taxes. Unfortunately, living trust salespeople can sometimes pressure unsuspecting senior citizens into buying living trusts they may not need or want. On average, these living trust "kits" cost $1,500 or more, and consumers may want to take the following precautions before purchasing them:

Be wary when a salesperson tells you that a kit she or he is offering will solve all of your estate planning problems.

Consider comparing the prices of these kits against the costs of hiring an attorney to provide the same services.

Make sure that the prices quoted to you are based on Arizona probate costs and laws. Probate costs vary from state to state and even from court to court within the state. Get the total estimated costs in writing before you proceed.

If the salesperson promises the services of an attorney to review documents, you may want to contact the Arizona State Bar to see if this attorney is licensed in Arizona.

If the salesperson claims to have certain credentials or qualifications, you may want to check these out before proceeding.

Find out in advance about refund policies. You may want to get the promise of a refund in writing.

Make sure that a living trust is an appropriate estate planning tool for you. Depending on the size of your estate, you may be better off saving the money you would spend on a living trust for your own living expenses.
Beware that some trust preparers will ask for all fees "up front." You may not want to do business this way.

Some salespeople may sell living trusts in order to learn about your financial situation. Then the salesperson may try to sell you annuities or contact other insurance companies who may then try to sell you other financial products.

SUMMARY

If someone you know wants to buy a living trust, go over some of the points above and advise them that they may want to consult an attorney who is trained in estate planning or check out the trust preparer's credentials and references before buying any services.

Be wary of giving your financial information or financial records to a living trust salesperson you just met or do not know well. Call the Attorney General's Office, if you or someone you know suspects that a salesperson is using questionable or unlawful means to sell living trusts.