CALIFORNIA PROBATE CENTER

The Authority for Probate Litigation and Estate Planning in California

Trust Mills, Trust Scams, and Trust Lies – “Estate Planners” Unlicensed to Practice Law & Elder Abuse

Posted on | March 31, 2010 | No Comments

I am often approached by people who have been in contact in one form or another with trust mills. Trust mills operate by doing estate planning on a large scale and by threatening elderly (and even middle aged) people with scare tactics if they do not use the estate planner’s often formulaic trusts. Although the use of a trust can in fact save your family money and time (See “What are the Pros of a Living Trust“), it will not allow you to prequalify for Medi-Cal or other public benefits (“What Are the Cons of a Living Trust“).

Nevertheless, that was precisely the alleged claim of two men (who were unlicensed to practice law) in San Jose who convinced some elderly residents that the use of their services would prequalify them for public benefits. The problem is that most of the seniors already qualified, and those did not would have to “spend down” their earnings which would incur heavy penalties.

What are the types of costs that are incurred if an elderly citizen is caught in a trust mill? Often the trust will have inconsistent and ambiguous distributive provisions that must be interpreted by a probate judge before the family can receive anything. The petition to do that is very costly and time consuming – it often takes months before the court order is finally signed and attorney’s fees will total in the thousands of dollars. Never mind the risk that the trust mill will take the private information of seniors and pass it off to others who will try to exploit them for gain. An attorney who breaches attorney-client privilege by releasing such information is subject to serious sanction – which is why estate planning should only be done by licensed members of the bar.

If you know someone who has been ripped off by a trust mill, do not hesitate in getting the plan corrected now. I offer discounts on repairing or restating plans that have been prepared under those circumstances, and I am sure other attorneys would offer the same deal as well.

Category: Probate Litigation
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