San Antonio Express-News
September 30, 2003

Another Scam to Avoid

copyright 2003, Paul Premack

There are a number of companies selling living trusts to seniors. Beware of them. They gather your information, pass it on to a company in another state, and return the forms to you. The sales representatives are not licensed to give legal advice, and are acting illegally.

The mailing you sent me is particularly misleading. First, the "National Association of Retired Americans" has no members, provides no benefits, is not registered with the IRS as a non-profit organization, does not have a telephone listing in Washington, DC where it claims to be located, is not listed with the Better Business Bureau, and has no website. The postcard provided with their mailing goes to an address in Addison, TX.

Second, the mailing is billed as a "tax update" but has no content that updates you on taxes. There were no other law changes in January, 2003 requiring every estate to go through probate. The Texas legislature wasn’t even in session in 2002 to pass any new laws about probate!

Even so, the desire to avoid probate is understandable and appropriate. Please realize that Texas already has one of the country’s most liberal probate systems. Probate takes from one to three months to complete, and is not the nightmare they want you to fear. A proper living trust can, indeed, keep an estate out of probate -- but so can a community property survivorship agreement or a pay-on-death arrangement. You must choose the best approach with counsel from your attorney.

Finally, the mailing misuses the AARP report to make you think they have AARP’s support. Tess Canja, president of AARP, testified before the US Congress in July, 2000, saying: "Living trusts are being hyped by salespersons - not lawyers - who want to sell products. … we have found that there are some ‘bad apples’ out there … fast-talking con artists who are selling costly estate planning services and generically-written ‘living trust’ documents to seniors who just don't need them… Sales materials are being sent to older adults with the unauthorized use of AARP's name in a way that implies that AARP endorses or supports the product or service. Many of the salespersons' materials cite a 1990 AARP report expressing support for the purchase of living trusts. This citation taken out of context and misrepresents AARP's advice to consumers. In fact, AARP is not associated with - nor does it endorse - any company that markets or sells living trusts."

What should you do? Complain to the Texas Attorney General about the lies. Tell your friends and associates to be wary. Don’t accept advice from biased and unqualified sources. Talk to your attorney, or consult with a Certified Elder Law Attorney about the estate planning approach most appropriate for your situation.

Note as on December, 2004: I have been informed by Jeffrey H. Lehmann, the Chair of the Houston Subcommittee of the Supreme Court’s unauthorized practice of law committee, that various businesses (including the National Association of Retired Americans) continue to use pressure tactics to sell living trusts to seniors, and that the businesses remain unlicensed to practice law. The Houston subcommittee seems to be the only group trying to combat these deceptive, harmful and illegal business practices. The State Bar of Texas and the Texas Attorney General's office have not been actively pursing these businesses, and you are encouraged to contact them to tell them they need to take action to protect Texas seniors from these illegal practices.

For more information, visit the Unauthorized Practice of Law Committee's website at