The digital era has brought more ease in some ways, but it’s also provided another route for malicious people to scam innocent victims – and estate planning is no exception.
Working with an experienced and reputable estate planning attorney is the only way to ensure your estate is protected from scammers and other potential threats.
Identify & Prevent These Top 5 Estate Planning Scams
Remaining informed of some of the most common estate planning scams is one of the best ways to avoid being taken in by malicious scammers. Here are five of the most common estate planning scams and tips on how to avoid them.
⚠️ SENIORS AT HIGHEST RISK
Scammers specifically target people 65+ who have:
- Paid-off homes with substantial equity
- Large retirement accounts
- Any signs of memory loss or cognitive decline
If this describes you or a loved one, setting up a secure estate plan TODAY is the best defense against financial predators.
1. Scams that take advantage of seniors
By far, the worst estate planning scams out there are the ones that target seniors. Scammers know that busy working families are the least likely to have substantial savings or equity of any kind. However, seniors are easy targets because, in addition to having larger savings accounts and noteworthy retirement funds, they often have paid off homes with enviable equity.
When you pair that with any type of dementia or memory loss, it’s a recipe for scammers to easily tap into a victim’s estate without leaving a trace. If you do not have a secure estate plan in place, especially by age 65 or with any medical diagnosis that involves cognitive decline, it’s time to do so immediately.
By working with an estate planning lawyer, a designated power of attorney, etc., your financial accounts are vulnerable. It is devastating to see the tens of thousands or even hundreds of thousands of dollars lost by scammers who have earned the trust of innocent victims, or who have completely taken advantage of someone whose cognitive decline prevents them from being able to discern a potential scam in action.
2. Living Trust Mills Scams
It is true that community-minded estate planners often host workshops or other educational events that provide information on various types of trusts, wills, and other estate planning tools. However, these events should be purely educational and should never be used to sell products or put high-pressure methods into motion to get people to sign up for a “one-size-fits-all trust.” Even worse, these aren’t real estate planning attorneys. Instead, they are scam artist salespeople who have packets of pre-created “Trust Packages” for “affordable prices.”
Not only is every estate different, but people also have different goals for how they want to manage their estate or what the estate provides for them. Trusts should be personalized to an individual and their goals, which requires meaningful conversations with an estate planning professional. No credible estate planner would ever have clients sign boilerplate trust forms.
🚩 SPOT A TRUST MILL SCAM
Walk away immediately if you encounter:
- ✗ High-pressure sales tactics at “free seminars”
- ✗ One-size-fits-all trust packages
- ✗ Salespeople (not licensed attorneys) pushing documents
- ✗ Requests to sign forms you don’t fully understand
- ✗ Cold calls or aggressive mail solicitations
Real estate attorneys educate, never pressure.
The best way to avoid Living Trust Mill Scams is to avoid any estate scam solicitations by phone or mail (more on that below) and to vet the credentials and experience of any estate planner you work with. Also, never sign trust documents that you don’t understand. If any “educational trust workshop” gives you that uncomfortable feeling of high-pressure sales, or the estate planning “experts” are using gimmicks or salesy tricks, don’t trust it and leave immediately.
3. Being charged excessive or hidden fees
Here’s another reason why it’s so important to research estate planning firms before you choose one. It’s a good idea to meet with at least three to five estate planners in your area so that you can make the best choice for you and your family. Sometimes, estate planning scammers use add-on fees to hoodwink their victims into paying far more than they should. They charge you a very reasonable or even “lower than average” fee to create your living trust, but they do not inform you about all of the hidden fees they’ll bill you for later for things like your medical advance directives, including a charitable trust, or any other additional documents you may need.
Most estate planning attorneys charge flat fee rates for their time. They may offer estate planning “packages” to help save you (like a bundled package), but they will provide very clear and detailed information about what those packages include. There should never be hidden fees or bills you didn’t expect. Every part of your estate planning process should feel 100% transparent.
By meeting with multiple estate planning firms, getting estimates for what you need (which gives you a good idea about the current rate for estate planning), and then choosing the one that’s best for you prevents you from paying excessive or fraudulent fees.
4. Soliciting services by phone (or mail)
If you get a cold call from anyone trying to sell you estate planning services, consider them a scam. This is not how any high-quality estate planner does business. We do not use cold calls to solicit customers. In fact, the majority of our clients come to us via word of mouth or because they’re vetting estate planning services via internet searches.
Once in a while, a good estate planning attorney may do some type of mail promotion of their services or educational offerings. However, if you attend – do so with a discerning mind. If they are legitimate, you’ll never feel any pressure, they’ll break down estate planning terminology and legalese, and they will never expect you to pay any fees.
5. DIY estate plans using templates
Yes, estate planning is an investment. However, when done by ethical, experienced lawyers, the money you spend will be minimal compared with how the estate helps to protect your financial health and your loved ones’ future. So, while we understand the initial temptation to go online (or unwittingly trust a scammer) in order to save money, DIY estate plans may leave your estate vulnerable and cannot be trusted.
💡 THE REAL COST OF CUTTING CORNERS
DIY estate plans and discount scams can cost your family:
- Thousands in unnecessary probate fees
- Months or years of legal disputes
- Emotional trauma during an already difficult time
- Loss of assets you worked your whole life to build
Professional estate planning isn’t an expense. It’s protection your loved ones deserve.
Your DIY estate plan is unlikely to meet all of your goals, can cost your heirs thousands of unnecessary dollars in taxes or probate fees, and leave significant loopholes for your relatives to contest the plan, which causes such unnecessary stress, heartache, and financial burden on your loved ones. A one-time investment to get your estate plan done right – and then reviewing and amending the plan over time – is more than worth what you’ll pay.
Tseng Law Firm Promises a Trustworthy Estate Planning Experience
Tseng Law Firm wants you and your family to enjoy the peace of mind you receive when your personalized estate plan is on file and ready to serve your loved ones when needed. We promise you a completely scam-free estate planning experience. Contact us to schedule a no-obligation discovery session and learn more about our services.