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What are the signs of a fraudulent living trust?

On Behalf of | May 22, 2023 | Estate Planning

Living trusts could help you manage your assets while you can still make rational decisions about them. However, they can only apply to certain people with specific financial situations. Estate planning requires the help of skilled professionals in law and finance. Their expertise could help set up an optimal plan that offers benefits based on your circumstances.

It could be fraudulent if someone is trying to sell you living trusts that guarantee unbelievable benefits. Con artists could approach you about estate planning and living trusts, saying they offer one-size-fits-all products that would work for anyone. They are often sold by living trust mills, which aim to sell unsecured financial products that might lead to questionable transactions.

Unfortunately, they target elders who might be more trusting and easier to manipulate. You could spot these fraudulent living trusts by looking out for these signs:

  •  A sales representative promises that their product matches your needs after asking only a few questions.
  • They cannot provide accurate answers about vital details, such as fees, withdrawal penalties and other costs.
  • You feel pressured to buy their product immediately without consulting a financial adviser or lawyer.
  • After purchasing their product, you immediately receive additional offers to liquidate your assets for excessive fees.

Additionally, they could present themselves as financial experts or paralegals. If you observe these signs, you might be dealing with a fraudulent living trust.

Your estate plan is a serious matter

Estate planning tools, including living trusts, are complex and could require decades of experience to navigate. Reputable businesses would expect you to take your time when making estate-related decisions. They would also provide exact details to help you determine if their offers could match your needs.

Fortunately, you could avoid them by not signing any documents they provide and verifying their identification with state agencies. Your assets are valuable, and you have every reason to say no if they seem suspicious.