Misinformation can cost seniors.

Chuck Zook, an independent insurance agent and financial adviser, has seen a lot of what he calls “trust mills.”

Sales associates, usually representing out-of-state companies and lawyers, will tell potential customers the only way to avoid probate is to establish a trust, which creates a plan for property, finances and even debt to be resolved peacefully after a person’s death.

Since most of his clients are seniors, Mr. Zook hears about the run-ins frequently. The trust mills can charge up to $3,000 to set up a trust. While the actual costs can vary depending on individual situations, basic trusts could cost as little as $900, according to Mr. Zook.

“They’re commission driven and charge twice the price a trust goes for,” he said.

The salesmen are typically met through postal mailings or even door-to-door calls. Sometimes the process is used just to get a foot in the door to view a person’s assets, said James Counts, an attorney with Morton, Reed, Counts & Briggs.

“They’re trying to sell you a concept,” he said of the door-to-door salesmen. “They’re not attorneys.”

Trusts are common for seniors wanting an easy way to avoid probate. But it’s not the only way.

The Missouri NonProbate Transfers Law of 1989 provides an alternative to using a will or joint tenancy, according to the Missouri General Assembly.

“You can avoid probate with a simple beneficiary,” Mr. Zook said.

The idea of an attorney or company having a bird’s eye view of a person’s financial statement from across the country is unprofessional to Mr. Zook.

“You don’t buy a trust through someone who knocks on your door or sends you a mailer,” he said. “You buy through a professional attorney. A local attorney is the only real logical choice. It’s crazy to buy from someone who’s 500 or 5,000 miles away.”

Mr. Counts said the confidentiality aspect alone speaks volumes when dealing with a personal attorney rather than a salesman. The attorney said that anyone dealing with financial arrangements, particularly estate planning, should be registered with the Missouri Bar Association.

“Estate planning is fairly complicated,” Mr. Counts said. He recommends talking to a banker, accountant, trusted friend or advisor and, by all means, talk to an attorney.

Business reporter Jennifer Hall can be reached at jennhall@npgco.com.