Attorney
Sadly there are evil people in the world who have no qualms about targeting the vulnerable and trusting in order to make a buck. These scam artists exploit people’s fears and lack of knowledge to commit fraud. Whether it’s fake attorneys, fraudulent trusts, or pressure sales tactics, understanding these scams is crucial to safeguarding your estate.
Horizon Elder Law & Estate Planning has been helping clients like you protect their assets for many years. They’ve set out their suggestions on how to protect yourself from common estate planning scams.
Common Estate Planning Scams
Trust Mill Scams
Trust mills are companies or individuals that use high-pressure sales tactics to push generic living trusts on unsuspecting individuals. They often target seniors at free seminars or through mail solicitations, offering low-cost estate planning documents that may be legally invalid or not appropriate for the client’s needs.
Warning Signs:
- Mass-produced trusts that do not address your specific circumstances
- Salespeople using fear tactics about probate and taxes
- Unlicensed or non-attorney representatives offering legal advice
Fraudulent Attorneys, Notaries and Notarios
Some scammers pose as estate planning attorneys without the proper credentials. In California, only licensed attorneys can provide legal estate planning advice. Additionally, some notaries may falsely claim they have the authority to draft wills and trusts, preying on immigrants unfamiliar with U.S. laws (in Hispanic countries, Notarios Publicos are highly trained legal professionals akin to attorneys who provide legal advice and draft legal documents).
Warning Signs:
- Individuals unwilling to provide proof of licensure
- Misrepresentation of credentials, such as calling themselves “notario” instead of an attorney
- Requests for large upfront fees without a clear breakdown of services
Investment Scams Disguised as Estate Planning
Some fraudulent advisors use estate planning as a front to sell risky or unsuitable investment products, such as annuities or unregistered securities. They often promise high returns with little risk, which should always ring some alarm bells.
Warning Signs:
- Aggressive sales tactics pressuring you to invest immediately
- Claims of “guaranteed” returns
- Lack of transparency about fees and penalties
Inheritance Scams
Scammers may contact individuals claiming they have an unclaimed inheritance, requiring payment or personal information to release the funds. These scams typically come via email, phone calls, or letters from fraudulent law firms or financial institutions.
Warning Signs:
- Unexpected communication about an inheritance from an unknown relative
- Requests for upfront fees or personal information to “claim” the inheritance
- Poorly written correspondence with vague details
How to Protect Yourself from Estate Planning Scams
Work with a Licensed Attorney
Always verify an attorney’s credentials through the California State Bar (www.calbar.ca.gov). Ensure they specialize in estate planning and have experience handling cases similar to yours.
Be Wary of High-Pressure Sales Tactics
If someone is rushing you into a decision, it’s a red flag. Take your time, do your research, and consult with a trusted professional before signing any documents or making financial commitments.
Verify the Legitimacy of Financial Products
Before purchasing annuities, trusts, or other estate planning products, make sure they are legitimate with your attorney or a certified financial advisor.
Be Extremely Careful with Personal Information
Legitimate professionals will not ask for sensitive financial or personal information before you’ve established a working relationship. Be wary of unsolicited phone calls or emails requesting such details.
Call a Contra Costa & Alameda County Estate Planning Law Firm with Concerns
If you have any concerns about your estate plan or suspect fraudulent activity, Horizon Elder Law & Estate Planning is happy to schedule a consultation with you.