When it comes to trusts, you usually get what you pay for. If you are looking for a trust to control the disposition of assets, reduce administration costs, or avoid probate, etc., a revocable trust or living trust can be an effective tool to use, but don’t be fooled into buying a “mill” trust, which is a generic, one-size-fits-all trust. Such trusts may not be scams, but they generally are not suited for estate planning and are usually a waste of money.

Fortunately, mill trusts are easy to spot.

Mill trusts are generally cheap-ranging from a few hundred to several hundred dollars. Remember that you do get what you pay for.

Mill trusts do not usually require personal professional advice. Instead, most counsel is given in the form of questionnaires, letters, and simple instructions that are identical for every buyer. Successful estate planning requires the advice of an expert after consideration of the client’s specific needs and goals.

Most mill trusts have limited purpose - usually avoiding probate. A properly drafted trust takes into account contingencies such as incompentency and divorce, family circumstances such as children and grandchildren from different marriages, and integration of other estate planning tools such as insurance, retirement funds, and charitable gifts.

Since mill trusts involve minimal involvement of professional planners, they tend be funded improperly. The client is left to fund the mill trust on his or her own. Some people, in the absence of good counsel, forget this step entirely.