February 2002
Be Wary of Those Promoting Expensive Trusts

A senior couple called me one day to inquire if I was the “Mike Jensen” who had accepted their check for a Trust. I informed them that I was not that person and that there is no other attorney named Mike Jensen who practices law in Salt Lake County.

I later discovered that a person with my name, allegedly under the supervision of a licensed attorney, was preparing or helping to prepare trust documents. I also discovered that the attorney for whom he worked resides out of the State of Utah. Further, the attorney's office was not an office where you could visit with the attorney!

The couple who initially called me also informed me that they had paid $1,995 for a Trust. However, they had never met nor spoken with an attorney. In effect, they had not been informed of the many options and choices in creating a Trust.

Eventually, I was able to assist this couple in canceling their purchase of the Trust. They also received a full refund of their entire $1,995.

Unfortunately, this story is not uncommon. There are certain predators who market trusts by spreading fear of probate. They often use flyers in newspapers or direct mail. Their marketing methods usually invite seniors to meetings held at libraries or other neighborhood places.

While at these “informational meetings,” the predators then provide some information, most of which is slanted toward a trust or insurance plans. Very little balanced information is presented. That is, the pros and cons of a Trust are not adequately presented to the attendees.

The unsuspecting attendees are urged to purchase a Trust. The price is often in the $2,000 range but can be considerably higher. Most individuals or couples who purchase one of these Trusts are not aware that such Trust can often be obtained from reputable attorneys for less than $2,000. Further, obtaining such a Trust from an Elder Law Attorney may result in more choices and more issues can be addressed, drawing upon the knowledge of the Elder Law Attorney.

For example, spending quality time with an Elder Law Attorney may permit you to address the following issues: (1) Should all grandchildren be treated equally in the event that two or more of your children predecease you, or, should your estate be distributed to your grandchildren per stirpes? ( 2) How can your Trust reflect gifts made to your children during your lifetime while treating all children equally? (3) Should you nominate in your Trust a guardian for your minor children? (4) Is a springing trust contained within your Trust the best way to provide for the educational needs of your grandchildren?

In the case described above, where the couple had not met with an attorney, these and other issues were not addressed. What you generally get is a Trust generated from a word processor. The Trust is often presented in an attractive, plush three-ring binder with tabs and a table of contents. Most of the emphasis is on the appearance of the Trust document rather than on the Trust's contents.

It is certainly true that a Trust may cost up to $2,000 or even more. But if prepared by a competent Elder Law Attorney, your Trust should be tailored to your specific needs and wishes. It should provide for a wide range of contingencies after extensive discussions with you. It should reflect your choices in a customized manner and not merely be a “boiler plate” trust document.

You can often distinguish between a genuine, customized Trust and a standard, trust form by how much time you spend with the attorney who prepares the Trust. If the Trust appears to be merely a “product” at a fixed, high price, rather than the result of a “service,” beware. You are going to pay a hefty price for a product that you could likely purchase from off-the-shelf software.

On the other hand, if you want a Trust to accurately fulfill your desires, chose an Elder Law Attorney who will devote an appropriate amount of time with you. The price may vary, depending on how much time is required to construct a meaningful Trust, but it will be worth it.

If you have assets sufficient to justify a Trust, you should consult a professional Elder Law Attorney. To locate an Elder Law Attorney, call the National Academy of Elder Law Attorneys at (520) 881-4005, or, consult your local Yellow Pages.

YOUR QUESTIONS: Do you have a particular question that you would like answered? To better serve the readers of the Utah Spirit, please direct your questions in writing to Michael A. Jensen, Elder Law Attorney, PO Box 571708, Salt Lake City, Utah 84157-1708, or by e-mail at: mike-spirit@utahattorney.com. From time to time, I will attempt to answer some of those questions.