Beware of Trust Mill Cons

Added: (Mon Dec 21 2009)

Pressbox (Press Release) - Illegal trust mills are nothing new. But elders still should be wary according to Gene L. Osofsky of the law firm Osofsky & Osofsky.

Two co-owners in a company participating in an illegal “trust mill” operation were recently ruled against by the Ohio Supreme Court. In this action, Jeffrey and Stanley Norman were permanently barred from marketing or selling their trust products in Ohio after they were found to have committed “more than 3,800 acts of unauthorized law practice.”

This kind of story has replayed many times across America. Unscrupulous characters such as the nefarious Normans weren’t the first of their ilk, and won’t be the last. Trust mills, those unfortunately ubiquitous entities, exist in every state, and are nothing new, according to Gene L. Osofsky, of the law firm Osofsky & Osofsky. “Although our elders tend to be the main targets, almost anyone can fall victim to such scams if they aren’t careful,” he warns, “These trust mills may offer inexpensive documents, but you tend to get what you pay for.” Usually the trust documents produced by these mills are merely generic forms with your name filled in. “They don’t address your family’s special needs or desires,” Osofsky explains, “and sometimes these bogus documents don’t even comply with the laws pertaining to trusts in your state.”

Osofsky’s advice is to be wary of any will or trust that is offered at a price too good to be true. “Be wary of anybody who attempts to sell you a trust or estate plan at a ‘great price’ and simultaneously tries to sell you supposedly ‘related’ products such as life insurance or annuities. Steer clear of any such salesperson that will come to your home or meet you in a restaurant, but has no local office or local phone number. Do business at your peril with anybody who will have you fill out a form and sell you a trust online, especially if they are not attorneys,” Osofsky explains.

Only an attorney is authorized and licensed to create trusts. Osofsky also makes some final points about legitimate trusts. “A good trust should be drafted by an experienced attorney who specializes in estate planning and who practices (and usually lives) in your state of residence and preferably in your immediate geographic proximity,” Osofsky concludes.