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: 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