Originally posted in Finance Industry Today, November 3, 2010
Attorney General of Arizona, Terry Goddard, has issued an official notice to people across the state to be on the lookout for unscrupulous salespeople offering do-it-yourself living trust kits that are oftentimes both unnecessary and financially risky. At an average of $1,500 apiece, this is a very lucrative con for the scammers and a big loss for the victims.
The high volume of such living trust-type products has led the Attorney General's office to deem them "mills," a name indicative of a cookie-cutter approach that is focused on just pumping out sales. They have been popping up all over Arizona, fueled by job cuts, the loss of retirement/savings/investment funds in a volatile stock market, the national housing crisis and other valid financial concerns.
How Do These Scams Operate?
Like other snake oil salesmen throughout history, these self-proclaimed "certified trust advisors" and "estate planning experts" exalt the value of their living trust kits, positioning them as a cure-all for any estate planning concern a consumer could face. The kits are commonly sold in free informational seminars complete with bells, whistles, flashy props, bright lights and a high-pressure sales pitch. Living trust products are aimed at senior citizens who may fear that a lifetime worth of hard work will be lost to the whims of a strained economy, but these all-purpose kits only drain even more of those hard-earned funds.
What Are Living Trust Kits Supposed to Do?
On the surface, these kits look like a good idea -- a great way to protect assets from undue tax burdens, loss caused by stock fluctuations or other reasons. To many people, they seem like the perfect solution -- all their estate planning needs addressed in one tidy transaction with someone who is marketing himself as a specialist. Unfortunately, more often than not, these products are not helpful and are a poor solution to the customer's financial needs. If a living trust or any other legal document is improperly drafted, it may put a substantial portion of a person's estate at risk.
By using the tools provided in the kit (most often boilerplate forms and general information that could easily be found at little or no cost on the Internet or at a local library), the "trust advisor" (a title not actually recognized by the state of Arizona -- the state does not regulate the sale of living trusts), upon receipt of a sizable fee, convinces the consumer to disclose detailed, private financial information that could possibly be used to sell other unnecessary estate planning or investment property in the future.
How Can You Avoid Being Scammed?
In spite of the convincing sales pitches and fancy-looking kits offered by these sellers, and the fact that these products might actually be a good fit for some consumers, the Attorney General's office advises that you use caution if you are considering purchasing one. Taking a few simple steps now can not only help you determine if you need a living trust, but it may be able to save you hassles down the road trying to undo damage done by an improperly prepared one.
When thinking about buying a living trust "kit," keep the following tips in mind:
- Estate planning is not like clothing -- be skeptical of a "one size fits all" product, especially if the salesperson offers guaranteed satisfaction; there are thousands of possible variables that a cookie-cutter document might not be able to handle
- If the marketer of a living trust kit or other estate planning document is holding him or herself out as a "expert" or "certified specialist," ask for documentation
- Ask for a written estimate of any and all costs associated with the living trust kit you are considering. Will the purchase price include filing fees, mail expenses, notary fees, etc.?
- Do a little math -- could an attorney offer the same services at a comparable price? If so, then you would receive personalized service and the confidence that someone with in-depth knowledge of Arizona estate planning laws has drafted a comprehensive document for you.
- Determine if a refund is offered if you determine that the product is not a good fit for you. If one is offered, ask for a written copy of the details.
- Honestly assess your financial information; depending upon the size of your estate and any unique assets, you may or may not need a living trust -- a simple will could suffice in some situations
If you or a loved one is considering implementing a living trust, take the Attorney General's advice to heart, and seriously consider seeking the advice of a trained estate planning attorney before you purchase a kit or give confidential financial information to a stranger.
Showing posts with label attorney general. Show all posts
Showing posts with label attorney general. Show all posts
Tuesday, November 9, 2010
Friday, July 23, 2010
How NOT to Operate a Private Investigative Agency
Reprinted from http://www.legalnewsline.com/, Friday, July 16, 2010, originally titled "Gansler, P.I. Firm Settle." Written by Keith Loria.
Maryland Attorney General Douglas Gansler announced on Wednesday [July 14, 2010] that his office has reached a settlement with a private investigation firm over allegations that it took money from clients and never provided services.
Donaldson Investigations LLC, an Anne Arundel County-based private investigation company, and Jerry Donaldson, its owner, were allegedly debiting money from clients without telling them first.
"Consumers need to know when the companies they hire to perform a service take money out of their bank accounts," Gansler said. "We are pleased that Donaldson has agreed to change the way it does business and resolve the complaints we have received."
Although Donaldson Investigations denied it violated any laws, the company agreed to stop withdrawing money from its customers' bank accounts without letting its customers know in writing at least 10 days in advance.
The company also agreed to deal with the complaints that the Consumer Protection Division has received, or that come in within the next five years, using the attorney general's arbitration program.
The settlement also calls for the company to pay $5,000 in legal fees and $5,000 as a civil penalty, which can increase to $20,000 if the company doesn't comply with the agreement.
Note From Jeff Kimble:
The above article offers a cautionary tale. The unsrupulous, the opportunistic, and the dishonest are few, but unfortunately they are still found in every facet of the business world, including private investigative agencies. (See: Things You Should Know Before Hiring a Private Eye in the May 2010 archive of this blog.)
At Arizona Private Investigations, we meet face to face with our clients, provide regular updates and reports, contractually bind our company to prepaid and/or fully disclosed fees, and never automatically withdraw funds from your account. At Arizona Private Investigations, you will always know where you stand, what you pay, and what method of payment will be used before the investigation even begins.
Our company has built its reputation on two things: honesty and great personal service. We will never settle for less. Call for a free consultation at 480-318-9936 or visit our website at: http://www.azprivateeye.com.
Jeff Kimble, P.I.
Arizona Private Investigations/
Arizona Legal Document Services, L.L.C.
101 West Main Street, Ste. 9
Mesa, Arizona 85201
Maryland Attorney General Douglas Gansler announced on Wednesday [July 14, 2010] that his office has reached a settlement with a private investigation firm over allegations that it took money from clients and never provided services.
Donaldson Investigations LLC, an Anne Arundel County-based private investigation company, and Jerry Donaldson, its owner, were allegedly debiting money from clients without telling them first.
"Consumers need to know when the companies they hire to perform a service take money out of their bank accounts," Gansler said. "We are pleased that Donaldson has agreed to change the way it does business and resolve the complaints we have received."
Although Donaldson Investigations denied it violated any laws, the company agreed to stop withdrawing money from its customers' bank accounts without letting its customers know in writing at least 10 days in advance.
The company also agreed to deal with the complaints that the Consumer Protection Division has received, or that come in within the next five years, using the attorney general's arbitration program.
The settlement also calls for the company to pay $5,000 in legal fees and $5,000 as a civil penalty, which can increase to $20,000 if the company doesn't comply with the agreement.
Note From Jeff Kimble:
The above article offers a cautionary tale. The unsrupulous, the opportunistic, and the dishonest are few, but unfortunately they are still found in every facet of the business world, including private investigative agencies. (See: Things You Should Know Before Hiring a Private Eye in the May 2010 archive of this blog.)
At Arizona Private Investigations, we meet face to face with our clients, provide regular updates and reports, contractually bind our company to prepaid and/or fully disclosed fees, and never automatically withdraw funds from your account. At Arizona Private Investigations, you will always know where you stand, what you pay, and what method of payment will be used before the investigation even begins.
Our company has built its reputation on two things: honesty and great personal service. We will never settle for less. Call for a free consultation at 480-318-9936 or visit our website at: http://www.azprivateeye.com.
Jeff Kimble, P.I.
Arizona Private Investigations/
Arizona Legal Document Services, L.L.C.
101 West Main Street, Ste. 9
Mesa, Arizona 85201
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