Headline in Newspaper: O.C. Executor Admits to Embezzling $6 Million from His High-Net-Worth Clients’ Estates.
I looked the man up. He was a financial advisor, working for a company with a decent reputation. He looked the part. The company he was associated with fired him—but only after he had already done a lot of shady things.
I doubt anyone will bet against me when I say I’m sure he stole more and only admitted guilt when he got caught. The people he stole from were wealthy, targeted with promises that seemed too good to be true. I’m sure he made claims he couldn’t support, like “You can trust me because…” I once met a potential victim of a similar bad guy who had written the word “Trust” on a piece of paper and even had it written on their hand. This technique is called “subliminal suggestion,” and it seems like the people who are best at this technique are often scammers.
So, how do you avoid becoming a victim of a “professional executor”? It’s not easy. The title “professional executor” was made up by the man who embezzled $6 million. People like him are good at making themselves look like trustworthy experts. Always check credentials (you can check mine on the State Bar Website and at NELF.org).
My advice for selecting a person who will manage your money when you die or become incapacitated is as follows:
Choose someone you’ve known for more than five years.
Pick someone whose job involves managing money for others (secretaries, administrative assistants, bookkeepers, accountants, managers, etc.) or rule-followers like engineers—they all make great choices.
Attorneys and financial planners are NOT good choices for trustees. It is my strongly held opinion that an attorney or financial planner should NEVER manage money for anyone other than their own family.
Select someone you’ve seen make good financial choices for themselves—someone who understands saving money, someone frugal, and avoid anyone who seems to live “high on the hog.”
