Trust Scams: How to Spot Them and Protect Your Family
Trusts are powerful estate planning tools — they help avoid probate, protect assets, and create long-term financial security. But because many people don’t fully understand how trusts work, they’ve also become a popular target for scammers. From fake “living trust seminars” to deceptive trust mill operations, trust scams cost seniors and families millions of dollars every year. Knowing what to watch for can prevent you from becoming the next victim.
What Is a Trust Scam?
A trust scam happens when a person or company uses misinformation, pressure, or false promises to sell unnecessary, overpriced, or completely fraudulent trust documents.
Scammers often target older adults, homeowners, and people who are worried about probate or taxes.
Their goal:
✔️ Sell “trust packages” for thousands of dollars
✔️ Collect your personal financial information
✔️ Push unnecessary products like annuities or insurance
✔️ Gain access to assets
Common Types of Trust Scams
1. Living Trust Mill Seminars
These are advertised as “free estate planning workshops” or “senior legal events.”
Scammers pretend to be legal experts and then pressure attendees to purchase high-priced trust kits.
Red flags:
Pushy salespeople claiming their product is “better than an attorney”
Promises that the trust avoids all taxes (false)
Fear-based tactics (“The government will take your home!”)
2. Fake or Unlicensed “Trust Advisors”
Some scammers pose as trust consultants or “senior advisers,” but they are not attorneys and not legally allowed to draft trusts.
They may sell:
Invalid trust documents
Outdated templates
Wrong legal information
These trusts often fail, leaving families in expensive court battles.
3. Asset Seizure or Access Scams
Scammers convince people to transfer assets into a “trust” they control — then drain the account or take the home.
This is one of the most dangerous trust scams.
4. Insurance & Annuity-Driven Scams
Some companies use trusts as a way to push seniors into buying high-commission insurance products.
They may say:
“You must buy this annuity for the trust to work.”
This is false and a major red flag.
Signs You’re Dealing with a Trust Scam
✔ They pressure you to sign immediately
✔ They promise to eliminate all taxes — impossible
✔ They say probate is always bad and must be avoided
✔ They are not a licensed attorney
✔ They cannot explain how the trust works
✔ They want to be the trustee of your assets
✔ They refuse to provide written credentials
If something sounds too good to be true, it usually is.
How to Protect Yourself from Trust Scams
1. Work ONLY with a licensed estate planning attorney
Ask:
What state bar are you licensed in?
How long have you practiced estate planning?
2. Avoid high-pressure sales
Estate planning is a major decision — no one should push you to sign “today only.”
3. Never give financial information at a seminar
Legitimate educators do NOT ask for Social Security numbers or bank info.
4. Don’t pay thousands for a “one-size-fits-all” binder
A trust must be customized to your state, your assets, and your goals.
5. Review documents before signing anything
Your attorney should explain each part of the trust in clear language.
Final Thoughts
Trust scams prey on fear, confusion, and the desire to protect loved ones.
The best defense is education, caution, and professional guidance.
A real trust is about protecting your family — not enriching a scammer.
If you ever feel unsure about a trust offer, a free consultation with a licensed estate planning attorney can save you from costly mistakes.