Avoiding Estate Planning Scams

Estate planning is meant to protect assets and ensure loved ones are provided for after the passing of the decedent. Unfortunately, scammers often prey on those unfamiliar with the process. This has grown exponentially with the recent rise of online services offering wills and trusts. Because of this, it’s more important than ever to recognize fraudulent schemes and know what to look for when setting up an estate plan.

Common Scams

There are many estate planning scams and dishonest practices one may encounter during this process. Listed below are the most common of these scams.

Unsolicited Offers from Telemarketers
One of the most frequently encountered scams is an unexpected call offering a low-cost or urgent estate planning service. Scammers often pressure individuals into providing personal information or making upfront payments for services that never materialize. It is critical to research a company before handing over any sensitive details.

Generic Estate Planning Templates
Online templates are very tempting due to their simplicity and cost effectiveness, however they often lack the customization required to comply with state-specific laws. If a company offers one-size-fits-all documents without personalized legal guidance, there’s a high risk that your will or trust may be invalid when it matters most.

Attorneys Who Apply High-Pressure Tactics
High pressure sales tactics should be a red flag regardless of the scenario, and this is especially true when working with an estate planning attorney. Any reputable attorney will take the time to understand your needs and explain your options. Be cautious of any legal professional who insists on immediate payment, avoids detailed discussions, or offers pre-made templates instead of personalized documents. It is wise to verify their credentials through your state bar association.

Excessive Legal Fees
While estate planning services always come at a cost, they shouldn’t drain an individuals finances. Unfortunately, some dishonest attorneys inflate their fees or add unnecessary charges to give the false illusion of the value of their services. Before choosing an attorney to work with on your estate planning, research the typical estate planning costs in your area and get multiple quotes.

Who Is Most at Risk?

Unfortunately, estate planning scammers usually target the most vulnerable in society, namely older adults. Scammers assume that seniors have significant assets and may be more trusting. According to the FBI, elder fraud is up annually, with seniors losing billions each year. Being educated and aware of these scams can help protect yourself and loved ones from financial exploitation.

Key Steps to Preventing Estate Planning Fraud

  • Verify credentials: Ensure any estate planning attorney you work with is licensed and in good standing with your state’s bar association.
  • Get referrals: Seek recommendations from family, friends, or financial advisors instead of responding to unsolicited offers. Working with an attorney specializing in estate planning who has a physical office is always the best route.
  • Avoid pressure tactics: Be wary of those that rush you into making decisions. Take your time and consult with a trusted professional.
  • Be cautious with online services: Research digital estate planning platforms thoroughly to confirm their legitimacy and ensure they are compliant with your state’s regulations.
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