Living Trusts

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WHAT ARE THE SIGNS THAT THIS IS A SCAM?

You are contacted by a lawyer or estate planner who offers a "free" consultation regarding living trusts. After the consultation, the salesperson charges a high fee to prepare the trust. The salesperson also encourages you to sell your life insurance policy and purchase an annuity but does not tell you about hidden fees and penalties. The salesperson often uses scare tactics and exaggeration about Probate Court and taxes to convince you to buy this trust.

You are contacted via phone call or mail to attend a seminar or schedule an in-home appointment to learn the benefits of a living trust. Once you attend the seminar or appointment, you are pressured to set up a living trust. You may be told that your assets will be tied up indefinitely or that your estate will be prone to heavy taxes or fees if a living trust is not in place. You may also be pressured to purchase a living trust 'kit', which costs thousands of dollars.


HOW CAN CONSUMERS PROTECT THEMSELVES?

Do your homework - research living trusts with several reputable professionals and gather information to determine if a living trust is appropriate for your estate. While living trusts are one strategy to plan in advance for the distribution of assets after your death, make sure you shop around to ensure you are getting the best deal with the most trustworthy estate planner or attorney.

Living trusts are legal arrangements and should be developed with or reviewed by an attorney who specializes in estate planning or elder law.

Be cautious of "free lunches," and never invite someone into your home that seems pushy or untrustworthy. Ask a trusted friend or legal advisor to review the trust with you, and be on the look out for surrender fees and tax payments you could face if you transfer your assets.

Don't fall prey to fear tactics or high-pressure sales pitches. Do not sign anything you do not understand, and take any paperwork or contracts to a trusted lawyer before you sign. Before you purchase any type of ‘kit’, speak with a lawyer to find out exactly what forms and paperwork you need.

Search the Ohio Supreme Court Directory to verify if the individual selling trust services has been admitted to practice law in Ohio. While a securities broker or insurance agent may recommend a living trust, only an attorney can create one.



HOW TO REPORT IF YOU'VE BEEN A VICTIM

Ohio Attorney General's office: If you have been pressured into signing a contract or you think your living trust is a scam, contact the Ohio Attorney General's office (800-282-0515) as soon as possible.

Better Business Bureau (BBB): You should also submit a complaint to BBB (513-421-3015 or www.cincinnati.bbb.org) to report the problem and to receive assistance with resolving the dispute.

Pro Seniors: The Pro Seniors legal hotline (513-345-4160) offers free legal information and advice to Ohio seniors age 60 and over. Consider contacting Pro Seniors before signing any legal documents or making any legal decisions.


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For more information on preventing senior scams, visit these Web sites:

Ohio Department of Insurance - Elderly Insurance Scams

Ohio Attorney General's office - Elderly Fraud

Medicare.gov - Medicare Fraud

U.S. Department of Health & Human Services and U.S. Department of Justice - STOP Medicare Fraud