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approaches to estate planning aren’t always the most efficient way to handle your affairs. Before you sign any papers to create a will, a living trust, or any other kind of trust:
• Explore all your options with an experienced and licensed estate planning attorney or financial advisor. Generally, state law requires that an attorney draft the trust.
• Avoid high-pressure sales tactics and high-speed sales pitches by anyone who is selling estate planning tools or arrangements.
• Avoid salespeople who give the impression that AARP is selling or endorsing their products. AARP does not endorse any living trust product.
• Do your homework. Get information about your local probate laws from the Clerk (or Register) of Wills.
• If you opt for a living trust, make sure it’s properly funded— that is, that the property has been transferred from your name to the trust. If the transfers aren’t done properly, the trust will be invalid and the state will determine who inherits your property and serves as guardian for your minor children.
• If someone tries to sell you a living trust, ask if the seller is an attorney. Some states limit the sale of living trust services to attorneys.
• Remember the Cooling Off Rule. If you buy a living trust in your home or somewhere other than the seller’s permanent place of business (say, at a hotel seminar), the seller must give you a written statement of your right to cancel the deal within three business days. The Cooling Off Rule provides that during the sales transaction, the salesperson must give you two copies of a cancellation form (one for you to keep and one to return to the company) and a copy of your contract or receipt. The contract or receipt must be dated, show the name and address of the sell- er, and explain your right to cancel. You can write a letter and exercise your right to cancel within three days, even if you don’t receive a cancellation form. You do not have to give a reason for canceling. Stopping payment on your check if you do cancel in
How to Make Sure Living Trusts are Trustworthy