Are “Trust Mill” Scams Still Targeting the Elderly?
Unscrupulous companies hire salespeople to target elderly individuals, pressuring them into paying large sums for estate planning documents that are not prepared by licensed attorneys. It is a scam that has been around for decades, and it is still happening today.
A column published in My San Antonio brought this issue into focus when a reader wrote in about documents his parents had purchased from someone they believed was a Dallas-area attorney. When his father passed away, his mother discovered the original documents were missing. She contacted the firm and received photocopies of a will, revocable trust, and durable power of attorney.
What the reader did not know was that the person who sold his parents those documents was never an attorney at all. A check with the State Bar of Texas confirmed it. The “attorney” was a licensed insurance salesperson hired by a trust mill to sell elderly couples on estate plans, using fear of probate as the pitch and annuities as the real product.
What Is a Trust Mill?
Trust mills are companies that use salespeople, not attorneys, to sell pre-packaged estate planning documents. They typically show up at your door or invite you to a free lunch seminar. The goal is not to protect your estate. It is to sell high-commission financial products, often annuities, under the guise of estate planning.
The documents they produce may look legitimate, but they are typically one-size-fits-all forms that do not account for your specific circumstances, family situation, or state law.
Why Photocopies Are Not Enough
The situation in the column illustrates just how much can go wrong when documents are lost or improperly prepared:
- A photocopy of a will is difficult or impossible to probate. Under most state laws, a missing original will is presumed to have been revoked, which creates significant legal hurdles for the family.
- A photocopy of a durable power of attorney is generally useless. Most banks and financial institutions will only accept original documents, and a power of attorney is void after the maker’s death regardless.
- A trust may still be valid even if the original agreement is lost, but the assets must have been properly titled to the trust for it to function as intended.
If your family has ever purchased estate planning documents from a non-attorney source, it is worth having a licensed attorney review what you have.
How to Protect Yourself and Your Family
Do not rely on someone who shows up unsolicited or who offers a free meal in exchange for sitting through a sales pitch. Work with a licensed estate planning attorney who will take the time to understand your goals and create documents tailored to your situation.
A properly drafted estate plan includes more than just a trust. It should include a will, durable power of attorney, and healthcare directives, all prepared by someone who is legally authorized to practice law in your state.
Work With an Experienced Estate Planning Attorney
At Simmons & Schiavo, LLP, Kenneth Simmons and Marco Schiavo help individuals and families create estate plans that actually hold up when it matters. Whether you are starting from scratch or need to replace documents that may have been improperly prepared, we can help.
To learn more about what a sound estate plan involves, visit our estate planning process page or explore our free estate planning guide.
Ready to get started? Call us at 781-675-1315 or visit our contact us page to schedule a consultation.
