Thursday, October 22, 2009

Beware of Trust Mills

The is reporting on a bust up of a trust mill in Ohio.

What's a trust mill and why are they so bad? A trust mill is a derogatory term we in law land give to business who scare people into paying fees for a living trust, without correctly evaluating whether a living trust is appropriate for the clients needs. The mills overstate the problems of probate and taxes and overstate the role a living trust can have in remedying those problems. They crank out form trusts without legal review, or very cursory review. Most estates will have little to no problems with taxes and probate. In most cases, a living trust is more of a cost and hassle than benefit.

However, it should be stated that in some, specific, circumstances, a living trust may be beneficial. Don't be intimidated by salesmen into paying for an estate plan that may not be beneficial for you. Contact a licensed attorney who can meet with you, review your specific needs and craft a plan that meets them.

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