Can Financial Planners Do Living Trusts?

by Jack L.
(MD )

I went to a free dinner last night put on by a local financial planner. I was surprised when they started "pitching" living trusts. So, I did some research and found your site. Thanks for the good info.

But, just wondered if financial planners commonly prepare living trusts -- I would have thought only lawyers would do them??



Editor's Note

Jack, thanks for the question. I can't say categorically that financial planners can never prepare living trusts. The issue is whether their preparation constitutes "practicing law" or not. That is an issue of state law.

So, it would vary from state to state. Although, personally, I am unaware of any state that would not consider preparation of a living trust to be practicing law.

So, I would be leary.

However, more than likely the financial planner you heard works with an estate planning attorney who actually prepares the living trusts for the clients the financial planner brings.

If that is the case, it is probably legal, though you should meet with the attorney before signing anything to be sure it is right for you.

The articles on this site will help you know what questions to ask the attorney.

Also, not accusing anyone of anything, because I don't know anything about you or the person you heard speak at the restaurant.

Still, you might benefit from some of the tips at Living Trust Scams.

Good luck!