What Are Living Trust Scams

What Are Living Trust Scams

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A. Living Trusts

As you understand, a living trust is a legal plan where an individual, called the “grantor,” puts his properties into a trust throughout his life time. The trust is administered by a “trustee” for the advantage of the trust’s recipients. Living trusts are a commonly acknowledged and genuine estate planning gadget.

B. Scams Involving Living Trusts

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Some unethical services promote workshops on living trusts or send out postcards welcoming customers to call for at home consultations, seemingly to discover whether a living trust is ideal for them. A typical practice is to considerably overemphasize the advantages of living trusts and wrongly declare that locally-licensed lawyers will prepare the files. In some circumstances, customers send out cash for living trust packages however get absolutely nothing.

Lots of state Attorneys General and other authorities, such as disciplinary or complaint committees of state or city bar associations, have actually taken enforcement actions versus living trust rip-off artists. The U.S. Securities and Exchange Commission likewise has actually prosecuted business claiming to provide estate planning services, such as living trusts, for breaking the securities laws through deceitful financial investment plans targeting senior residents.

As you understand, a living trust is a legal plan where an individual, called the “grantor,” puts his possessions into a trust throughout his life time. The trust is administered by a “trustee” for the advantage of the trust’s recipients. Some unethical services promote workshops on living trusts or send out postcards welcoming customers to call for at home visits, seemingly to find out whether a living trust is best for them. The U.S. Securities and Exchange Commission likewise has actually prosecuted business claiming to provide estate planning services, such as living trusts, for breaking the securities laws through deceitful financial investment plans targeting senior residents.