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FTC Alert:
Make Sure Living Trust Offers Are Trust-Worthy
WASHINGTON--(BUSINESS WIRE)--
You've worked hard for your money, so it's no wonder that you'll
want some control over what happens to your assets in the event
of your death.
At
the very least, you probably want to minimize or avoid potential
hassles and headaches for your loved ones.
Many
consumers turn to experts in estate planning for help in
directing what happens to their assets after they die. There are
several strategies consumers can choose from to make sure that
their assets are distributed as they wish and in a timely way.
Unfortunately, there also are scam artists who prey upon
misinformation and misunderstanding about estate taxes and the
length or complexity of probate.
Some
unscrupulous businesses advertise seminars on living trusts or
send postcards inviting consumers to call for in-home
appointments to learn whether a living trust is right for them.
Others sell living trust "kits" they never deliver,
and still others use estate planning services to gain access to
consumers' financial information and to sell them other
financial products.
The Federal
Trade Commission (FTC), the government agency that works to
prevent fraud, deception and unfair business practices in the
marketplace, advises consumers to proceed with caution. Before
you sign any papers to create a will, a living trust, or any
other kind of trust, the FTC suggests that you:
-
Explore
all the options with an experienced and licensed estate
planning attorney or financial advisor.
-
Avoid
high-pressure sales tactics and high-speed sales pitches by
anyone who is selling estate planning tools or arrangements.
-
Avoid
salespeople who give the impression that AARP is selling or
endorsing their products. AARP does not endorse any living
trust product.
-
Do your
homework. Get information about your local probate laws from
the Clerk (or Register) of Wills.
-
Make
sure your living trust is properly funded - that is, that
the property has been transferred from your name to the
trust.
-
Ask if
the seller of a living trust is an attorney. Some states
limit the sale of living trust services to attorneys.
-
Remember
the Cooling Off Rule. If you buy a product or service in
your home or somewhere other than the seller's permanent
place of business (say, at a hotel seminar), the seller must
give you a written statement of your right to cancel the
deal within three business days.
-
Check
out any organization that wants your business with the
Better Business Bureau in your state or the state where the
organization is located before you send any money for any
product or service. This is a prudent step, but not
altogether foolproof: there may be no record of complaints
if an organization is too new or has changed its name.
For
more information about living trusts and estate planning,
including a list of the "terms of art" and their
definitions, consumers can call the FTC toll-free,
1-877-FTC-HELP, and ask for the publication, Living Trust
Offers: How to Make Sure They're Trust-Worthy. Or, view the
publication online at www.ftc.gov/bcp/conline/pubs/services/livtrust.htm.
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