Tips for Seniors on Avoiding Living Trust Scams

Many seniors worry about what will happen to their property and assets after they pass away. Setting up wills and trusts can seem like a daunting task, and while some unscrupulous companies and individuals may try to take advantage of unwary seniors, there are plenty of resources when it comes time to set up a will or trust.
Try to stick to the facts and be wary of the exaggerated and often outrageous claims that living trust companies make about their products. Claims to look out for include:

• False Claims About the Probate Process.
Many companies try to convince seniors that the probate process is always long and costly and that everyone's estate will be subject to probate. These companies are usually exaggerating the costs and hassles of probate and you may be able to avoid probate in other ways.

• False Claims About Tax Benefits.
Many companies advertise the tax benefits of living trusts. The truth is that a simple living trust (as opposed to a more expensive and complicated tax-saving living trust) has no effect on taxes.

• False Claims That Living Trusts Will Shelter You From Creditors.
A living trust will not automatically protect your assets and property from creditors.

• False Claims About the Cost of Setting Up A Living Trust.
Living trusts can be expensive. Lawyers often charge five or six times the cost of a will. Depending on the size of your estate, the costs of a living trust may be much higher than the cost of probate.

• False Claims About How Much Time it Takes to Set Up A Living Trust.
It can take a lot of time to set up a trust properly. Most important, writing up the document is not enough. The trust will not be valid until property is transferred from your name to the trust. This is called “funding the trust.”

• False Claims That You Don’t Need a Will If You Have A Living Trust.
Even if you decide to buy a living trust, it is still a good idea to have a will as a back-up.

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