Trust Scams in Estate Planning: What You Need to Know

Many are lured into attractive offers such as 'low-cost trust seminars' or 'too good to be true' trust deals. But beware: if someone is offering you a trust at a significantly lower price than most attorneys, but claim it has the same level of quality, it's time to be suspicious.

Recent Discoveries: Red Flags in Estate Planning Documents

Recently, a client approached with a meticulously organized set of trust documents. Upon review, an outdated provision, the ‘A-B split’, was discovered. This provision, once common for lower estate tax levels, is now outdated and potentially problematic for those with a net worth under the current estate tax levels of $12.9 million (as of 2023). Such outdated provisions can lead to complications like increased taxes, reduced accessibility to funds, and the requirement of filing double tax returns annually.

Adding to the complexity was an improperly executed amendment to the trust, questioning its validity.

Shockingly, another set of clients presented an almost identical set of documents. A little probing revealed the source of the second set: a cheap online trust service. This raised concerns about the originality of the first set of documents and the authenticity of the attorney who provided them.

The Implications of Unethical Practices

Beyond the obvious ethical concerns of plagiarism and charging clients without providing value, these practices can cause serious harm to clients. The implications can range from simple misunderstandings to more significant legal complications that can cost clients time, money, and peace of mind.

Guidelines for Choosing the Right Attorney

1. Check Reviews: Before engaging with an attorney, research their online reputation.

2. Seek Referrals: Trusted friends and family can often provide valuable recommendations based on personal experiences.

3. Review Their Website: An attorney's expertise should be evident. If they seem to be a jack-of-all-trades, they might lack the specialization you need.

4. Ask Questions: During consultations, don't hesitate to test the attorney's knowledge. An informed attorney should confidently answer foundational estate planning queries.

At Bethel Law, our commitment to estate planning ensures that clients receive customized, knowledgeable, and ethical service.

BETHEL LAW CORPORATION
ESTATE PLANNING | ELDER LAW | BUSINESS PLANNING

CLICK HERE OR CALL US AT 909-307-6282 TO SCHEDULE A FREE CONSULTATION.

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