Berkshire Senior Online

Federal probe finds deception and fraud among trust providers

Lillian Glickman, Massachusetts Secretary of the Executive Office of Elder Affairs, has joined a nation-wide call to warn elders about living trust scams being perpetrated against the elderly. The United States Senate Special Committee on Aging, which recently took testimony from elders and family members affected by living trust scams, issued the warning call earlier this month.

With a living trust, an individual is able to set up a trust fund for is or her assets. The trust goes into effect while the individual is still living, and a designated beneficiary receives the assets upon death. Living trusts have advantages over traditional wills by allowing heirs to avoid probate court. While many living trust sales outfits are legitimate, more and more opportunists are targeting older Americans with living trust scams and fraudulent sales practices.

Increasingly, living trusts are being established by the elderly - particularly by those elders considered to be living in low-income categories and who do not necessarily face estate taxes anyway. According to the AARP, these people have become the target of a number of unscrupulous companies that charge unusually high annuities, and establish unnecessary trusts that are not in compliance with state law.