The Danger of Living Trusts

Living trusts can be dangerous. Actually it may not be the living trust but the person helping you develop one that may be dangerous. One of my regular themes is the importance of considering the source of any information. This is especially true when it comes to living trusts.

Because of the great interest in living trusts and the fact that the elderly are often most interested (many of whom are unfortunaely ill informed), there is a wide variety of predatory types circling for a kill.

It is worthwhile to gain an understanding of this problem. Be sure to take time now to learn a little about this and be prepared to avoid unintended negative consequences in your future.

The California attorney general's office has prepared a helpful paper explaining this issue. Check it out at:

http://ag.ca.gov/consumers/general/living_trust_mills.php

Another excellent article by the Michigan attorney general's office can be found at:

http://www.michigan.gov/ag/0,1607,7-164-34739_20942-44727--,00.html

A living trust can be extremely important in planning for your future. Just get the facts first and be sure any assistance you get is from a trusted source.

You can get a free dinner and other “gifts” for attending an informational meeting in which you may be convinced to spend two or three thousand dollars for what you could get done almost for free by using Suze Orman’s Will and Trust Kit. Buy the kit instead! It will prepare the basic form for you.

But my advice is to also enlist the aid of a local attorney who specializes in estate planning and elder law. They should also be knowledgeable in the areas of probate and real estate law.If you unknowingly change the tax status of your property, for example, you could make a mistake that costs thousands in unanticipated expenses to your heirs if not to yourself.

Your cost will be limited if you work with a good lawyer who only charges you for what you need. If you use something like Orman’s Kit to help you gather the information you need and are willing to do the leg work yourself you can keep your costs down.