If properly done, a trust can eliminate the need for probate and reduce or eliminate estate taxes. Trusts are a rapidly growing sales item, but they are not for everyone. Trusts are traditionally prepared by attorneys. Now insurance agents, financial planners, investment firms, tax planners, banks, and marketing firms are selling them as part of their services. Attorneys who practice estate planning are trained to recommend a trust to clients if it is appropriate to their needs.
Some salespersons use misleading information to sell trusts.
We recommend consulting an attorney or an accountant experienced in estate planning to determine what estate planning devices are best for you. Be aware that if you use services from someone who is not trained in estate planning, you can end up spending money to fix problems they create for you. Be wary of any seller who discourages you from reviewing the trust with an attorney before you buy. Giving advice on the need for a trust and preparing a trust constitute the practice of law. A non-lawyer cannot obtain malpractice insurance for practicing law, which may leave the consumer without recourse should a serious problem arise.