Friday, January 8, 2010

Antelope Valley Estate Planning Law Firm Warns Senior Citizens To Be Wary of Living Trust Mills

Antelope Valley estate planning law firm Thompson Von Tungeln says living trust mills can create large tax burdens and reduce the assets available to pass on to your heirs.

Lancaster, CA (PRWEB) January 8, 2010 -- Antelope Valley estate planning law firm Thompson Von Tungeln urges consumers considering their estate planning options to beware of “Living Trust Mills.” This is a scheme where salespeople posing as “living trust experts” sell annuities or other investments under the guise of helping with an individual’s living trust. Usually preying upon senior citizens through home visits or through free seminars in churches, assisted living centers and other places where seniors gather, these sales people use the financial information shared with them by unsuspecting consumers to frighten these people into thinking that their current investments are inferior and riskier than the ones the salespeople are selling.

“The end result of this process is that the unsuspecting consumer frequently gets back a living trust that could be invalid, causing lasting damage to their estate plan,” said Kevin Von Tungeln, partner at Thompson Von Tungeln. “They often find they have a huge tax penalty due to transferring their assets to the salesperson’s products, leaving them with fewer dollars to pass on to their heirs. Beware of any seminar or advertisement that includes language such as “A licensed insurance agent may contact you.” This is a red flag that you are dealing with a Living Trust Mill.”

“Beware of anyone who is trying to set up your estate plan and sell you products to place in the plan. That is a conflict of interest that should raise a red flag.”
The California Attorney General’s office offers the following tips to avoid being victimized by a living trust mill:
 
  • Living trust mills' sales agents are usually not attorneys and are not experts in estate planning.
  • Watch out for companies that sell trusts and also try to sell annuities or other investments.
  • Sales agents may fail to disclose possible adverse tax consequences or early withdrawal penalties that may be incurred when transferring stocks, bonds, certificates of deposit or other investments to annuities.
  • An annuity is not 100% safe, and only a portion is guaranteed by the state. Insurance companies can and do fail, and their assets may not be enough to pay the full value of their customers' investments.
  • So called "promissory notes" are not insured by the FDIC or any other government agency and may be very risky. They may not be registered as securities with the state.
  • Before consumers buy an annuity or any other investment, they should review it with people they know and trust, such as their financial or tax advisor, their attorney and trusted family members.

“Before making any changes to their estate plan consumers should consult a licensed attorney, preferably a certified specialist in estate planning and trusts,” cautioned Von Tungeln. “Beware of anyone who is trying to set up your estate plan and sell you products to place in the plan. That is a conflict of interest that should raise a red flag.”

About Kevin Von Tungeln
With more than 18 years’ legal experience, Kevin L. Von Tungeln serves Thompson Von Tungeln in the areas of estate planning, probate, trusts, wills, trust administration, conservatorships, guardianships and elder law. He is certified by the State Bar of California Board of Legal Specialists as a Board Certified Specialist in Estate Planning. Get to know more about Kevin’s approach to estate planning by viewing his informational videos at: http://www.youtube.com/user/EstateLawyers. Kevin can also be found at LinkedIn by going to: (www.linkedin.com/in/kevinvontungeln)

About Thompson Von Tungeln
Antelope Valley estate planning law firm Thompson Von Tungeln (TVT) offers sophisticated estate planning and administration for the affluent, discriminating client. As Board Certified Specialists in Estate Planning, Trusts and Probate as certified by the State Bar of California Board of Legal Specialization, partners Mark E. Thompson and Kevin L. Von Tungeln are expertly equipped to serve these clients with the creative, effective and custom solutions they demand. For more information, contact TVT at 661-945-5868 or visit their website at EstatePlanningSpecialists.com.

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[Via Legal / Law]

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