Beware of "One-Size-Fits-All" Estate Plans

A revocable living trust can be an important tool in estate planning for many people.  A revocable living trust is a trust instrument that may be changed during the lifetime of its grantor, the person who sets up the trust.  It is called a “living trust” because the maker is alive, in contrast to a testamentary trust, which is not effective until after the death of its maker. By itself, the living trust instrument is probably a legal document.  However, a subject as important as estate planning should be discussed with trusted professional counsel, including your attorney and financial planner.

In recent years, several for-profit companies have begun marketing living trusts over the telephone, by postcard, by in home sales pitches, and in regional meetings, often held at restaurants or in hotel conference rooms or even senior centers and public libraries.  Likely targets of the promotional marketing are senior citizens.  The one-size-fits-all trust forms being sold at these events vary greatly in quality and may not be appropriate for your individual estate planning needs.  Contrary to some sales pitches, not everyone benefits from a living trust.

Sometimes customers pay exorbitant fees for these trusts.  A typical charge by one of the trust kit companies is $1,995.00 per trust.  Trained salespersons may exaggerate consequences of failing to buy their products, or may employ high pressure tactics to close a sale and not disclose that the thick, expensive-looking finished document is only a living trust "kit."For more information contact the Office of the Attorney General.