Money Matters

Watch Out for Living Trust Mills

AARP has warned that some firms masquerading as AARP affiliates are using high-pressure sales tactics to sell costly and often unnecessary or even dangerous cookie-cutter living trusts to lower-income seniors. These abusive trust mills frequently charge thousands of dollars to deliver boilerplate documents. They also fail to inform seniors that the trusts may adversely affect Medicaid eligibility in some states or even that the trusts need to be funded to be effective.

A living trust is a useful estate planning tool, and as with any tool, it may not be the best option in some situations. Anyone selling living trusts as a one-size-fits-all estate plan without first reviewing the client’s circumstances and presenting all options does not have the client’s best interests in mind. Be sure to consult a trusted elder law or estate planning attorney before creating a living trust.