Living Trust

Living trust documents, just like any other important document, should correctly and expressly represent the exact intent of the individual who executed it, particularly that it should serve the purpose for which it was made.

Based on recent reports, there are numerous individuals or groups peddling living trust documents that are improperly drafted or made, sometimes even misleading unwary individuals - mostly targeted are the elderly - into believing that executing a living trust will solve one's concerns about how to manage their estates, be it financial wealth or properties.

Although there is truth to the fact that a living trust is indeed a good planning tool on managing an estate, that is, with a properly and carefully drafted living trust document. However, a hastily made or inappropriately executed living trust document can be very damaging and could even cause a grantor to lose everything, instead of protecting it.

The U.S. Federal Trade Commission recently issued a warning about certain living trust promoters, especially with the manner that these unscrupulous individuals or groups market living trusts. The FTC also claimed to have received reports that there are scams involving living trust promoters that are not qualified legally and technically equipped to execute living trust documents. Always take caution when finalizing a living trust document, the FTC advises, and always take caution before taking that step.

In order to be more assured and wisely advised about certain procedures, legalities and technicalities in approving a living trust document, one needs to be well informed and should explore all possible options. One good way to do this is to have a financial advisor, especially a seasoned and licensed estate planning lawyer who could provide you with good advise on how to draft and execute your will, more so that the law requires that a licensed attorney should be the one to draft the living trust document.

Also, don't be tempted with too-good-to-be-true offers, particularly those that apply high-pressure sales tactics or irresistible sales pitches by those selling estate planning tools or arrangements. Get feedback or information from other grantees of living trusts as they may be able to give you good information or even advise on executing your living trust document.

Living trust regulations also vary from state to state, so always take note of the legal requirements or restrictions that may govern your living trust document. Another way to look for vital information about living trust legal restrictions or requirements, as well as duly licensed estate planning lawyers or living trust promoters is your state's Clerk/Register of Wills.

Another important consideration is to take careful note of the 'Cooling Off Rule', especially when a living trust document is purchased or executed in the grantor's home or any place other than the seller's registered place of business.

This rule mandates that during any particular transaction, the seller must provide two copies (one copy for the prospective buyer and one copy for the company) of a cancellation form to the prospect and a copy of the receipt or contract of purchase.

The receipt or contract must indicate the date of the purchase, the name and address of the seller and the buyer's rights to cancel.

Lastly, always check with your local Better Business Bureau where your living trust promoter is located before sending money for payment.

Living trusts are essentially good estate planning tools. As long as you are fully aware, well informed and that your living trust documents are properly executed, you can rest assured that your estate is in good hands.

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