Living Trust Scams Target The Elderly

LINCOLN - The Nebraska Attorney General's Office has said that the rapid growth in the sales of living trusts has spawned a fraudulent industry which directly targets the elderly.

A "living" or "revocable" trust is a document created during your lifetime that is used as a form of estate planning as an alternative to a will in property distribution.

The marketing of living trusts, by telephone, door-to-door sales, or in seminars, has become a popular and legitimate alternative to traditional estate planning in recent years.  Unfortunately, the rapid growth of this industry nationwide has also caused it to become a major source of consumer fraud - targeted directly at the elderly.

"Oftentimes, defects in the documents will not be discovered until after it is too late to correct them, leaving survivors with a legal and financial nightmare.

As part of the sales presentation, consumers may be told that "everyone needs a living trust" to avoid the cost and delay of probate and to reduce estate taxes.  Consumers may also be told that, by purchasing the estate planning information they will have access to attorneys who will answer their estate planning questions and prepare their estate planning documents, free of any additional charge.  In other cases, consumers may be told that by purchasing certain forms and other information, they can create their own living trust without hiring an attorney.

A living trust properly prepared by a licensed attorney is legal in Nebraska, but citizens should consult an attorney before deciding to use a trust.  Living trusts are the right choice for some people but are complicated legal documents and can cause many more problems than they solve if not used properly.

Prior to entering into these agreements, consumers who are considering a living trust should educate themselves and consult their own attorney on the particulars of Nebraska law before proceeding.

For more information about companies selling living trusts in Nebraska or any other consumer issue, contact: