As people age, they often become more interested in investments and estate planning tools to help them prepare for retirement. Unfortunately, illegitimate service providers might take advantage of these individuals and scam money out of them using fraudulent products or services, such as living trusts.
Some sell fraudulent living trusts, promoting them as an ideal solution to elders, helping them prevent probate and save money. These schemes usually approach seniors with impairments, making them vulnerable targets of these illegitimate products.
Salespeople usually claim to be trust specialists and advertise their products as living trust kits. These products look legitimate at first. Later, they may cause problems and expensive fees because of poorly drafted agreements and inappropriate features. Elders and their family members could help avoid these schemes by spotting the following red flags:
- After asking only a few questions, the sales representative used high-pressure tactics to seal the deal. Ideally, attorneys specializing in estate planning take time to consult and determine what tools can match their client’s requirements. If not, the arrangement might be unfavorable or fail to meet their client’s needs.
- The salesperson refuses to disclose exact details about any penalties or fees. These options can be more costly than other estate planning tools, potentially leading to losses instead of benefits.
- The salesperson also offers other services for high fees, such as asset liquidation or conversion. The company could be promoting them to charge you more than they already have.
Consumers who face these warning signs should be vigilant and avoid buying these offers upfront. Instead, take time to check the firm’s legitimacy or seek estate planning services from more credible providers.
Saying no could save your estate
There is no problem with seeking estate planning options if you obtain them from reliable sources. Failing to do due diligence on a provider could lead to severe repercussions, such as losing money or having losses on the estate. Suspicions of fraud are a good enough reason to say no and turn down the offer.