The Truth About Living Trusts

The Truth About Living Trusts

2004

The Truth About Living Trusts

• What is a living trust?• The pros and cons of living trusts• How to spot the scams• What to do if you might have fallen

prey to one of the scams

What is a Living Trust?

• Part of estate planning

• Like a will: lets you direct how your property will pass after death

• NOT like a will: it’s in effect while you’re alive

Living Trusts: Right for You?

• Help manage assets during a disability

• If you have children or grandchildren with special needs

• If you own property in more than one state

• Avoids going through probate• Private (not filed in public records)

Living Trusts:Wrong for You?

• Most people don’t need one• Probate is not a big concern for

most people• May be more private – but there’s

no supervision• More expensive to prepare than a

will• NOT a simple solution

Living Trust Scams• Salespeople who pressure you to

buy – whether or not a living trust is right for you

• Make a lot of false claims, including using AARP’s name

Living Trust Scams• Postcards that make it look like

AARP supports their product – NOT TRUE!!

Living Trust Scams• Claim #1: A living trust will help

you preserve your legacy

• Truth #1: – Living trusts are still subject to

estate taxes–Most people don’t need to worry

about probate costs– Living trusts are expensive to

create

Living Trust Scams• Claim #2: The free lunchtime

seminar will give you good information

• Truth #2: – The “seminar” is for sales, not

information– Pressure to buy– Pressure to give out personal

information

Living Trust Scams• Claim #3: The living trust kit was

prepared by an attorney, and you just fill in the blanks

• Truth #3:– “Kits” often just generic forms– No attorney involved – and you

need one!–May not meet state requirements– A bad idea

Living Trust Scams• Remember:

– AARP does not sell or endorse any living trust product.

– AARP has never given permission to living trust marketers to use the AARP name.

If you might have been scammed…

• Take your trust document and all other paperwork to an estate planning attorney

• Report scams to your state Attorney General

• Report scams to the Federal Trade Commission: 1-877-FTC-HELP

The Truth About Living Trusts

• What is a living trust?• The pros and cons of living trusts• How to spot the scams• What to do if you might have fallen

prey to one of the scams

The Truth About Living Trusts

2004