4 tips to protect yourself from living trust scams
Planning your estate is an important step that helps ensure the proper distribution of your assets according to your wishes. This includes creating trusts, such as living trusts, which can provide financial security and avoid probate for your loved ones.
However, it’s important to be aware of scams targeting individuals seeking to create or manage these trusts. Here are several tips to protect yourself from living trust scams.
1. Do your research
Before choosing a living trust, make sure it’s the right option for you. Scammers may pose as trust specialists, financial professionals or even attorneys to gain your trust. They might claim to be licensed or government-approved, but always verify their credentials with the appropriate authorities. Not everyone needs a living trust, so be wary of anyone pushing it as a one-size-fits-all solution. Legitimate professionals will provide personalized guidance based on your specific needs.
2. Understand your rights
Before signing anything, make sure you understand your cancellation rights. Always ask for copies of the documents you sign. In many cases, contracts made in your home can be canceled within a few days. If you’re 60 or older, you may have 30 days to cancel certain purchases without penalties. Know your rights to avoid unwanted commitments.
3. Be cautious of high-pressure sales tactics
Avoid being pressured by sales agents who claim your investments are unsafe or promise higher returns with less risk. Agents often earn high commissions, so their focus is on making a sale. Always understand the terms and costs before agreeing to anything.
4. Watch out for bundled products
Be cautious if a company offers a living trust alongside other investments like annuities. These products have different risks, and some may have penalties or tax consequences if you need to access your funds early. Always understand the terms before transferring assets.
Seeking knowledgeable legal guidance can help ensure you do not fall into scams or make decisions that could harm your financial future.