The Truth About Living Trusts 2004. The Truth About Living Trusts What is a living trust? The pros...

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The Truth About Living Trusts 2004

Transcript of The Truth About Living Trusts 2004. The Truth About Living Trusts What is a living trust? The pros...

Page 1: 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.

The Truth About Living Trusts

2004

Page 2: 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.

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

Page 3: 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.

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

Page 4: 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.

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)

Page 5: 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.

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

Page 6: 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.

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

Page 7: 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.

Living Trust Scams• Postcards that make it look like

AARP supports their product – NOT TRUE!!

Page 8: 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.

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

Page 9: 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.

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

Page 10: 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.

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

Page 11: 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.

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.

Page 12: 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.

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: 1-877-FTC-HELP

Page 13: 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.

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

Page 14: 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.

The Truth About Living Trusts

2004