Families across the UK are being warned about a growing issue involving asset protection trustsālegal schemes that are being sold with misleading promises of shielding homes from care fees and reducing inheritance tax.
According to the Association of Lifetime Lawyers, many peopleāespecially older homeownersāare being targeted by unregulated companies selling complex products called āasset protection trusts,ā sometimes disguised as āfamily protection trustsā or āflexible trusts.ā These schemes are often expensive, costing between Ā£3,000 and Ā£5,000, and are marketed to protect your home or savings. But they may offer no real protection and could lead to serious financial and legal problems.
A recent survey found that:
– 82% of lawyers said their clients were misled about what the trusts could do.
– 89% of cases involved unregulated providers.
– Three in four clients experienced financial loss or family conflict.
In many cases, the companies selling the trusts appointed themselves as trusteesāsometimes without the clientās full understanding or consent.
The Association says these schemes can backfire, causing unexpected tax bills, loss of control over your assets, and emotional stress for families. Theyāve launched a consumer campaign to help people spot the warning signs and make informed decisions.
What You Should Do:
– Seek regulated legal advice from a qualified wills and probate solicitor.
– Request a clear written explanation including the long-term consequences, risks, limitations and alternatives
– Ensure you understand the roles of Trustees including their duties and responsibilities
– Request a transparent quotation for legal fees and associated disbursements
– Donāt rush into signing anything, take time to consider your options, especially if itās not explained clearly.
– Be cautious of firms that discourage using regulated professionals by claiming theyāre too expensive.
– Use the Associationās red and green flag guide to help assess whether a trust is right for you.
If you or a loved one is considering an asset protection trust, speak to a regulated wills and probate solicitor first. Protecting your home and inheritance is importantābut it must be done safely and legally.
Howells Solicitors have a strong record of great service and positive client feedback. We rank as one of the top law firms in South Yorkshire for wills and probate solicitors on review solicitors. We also rank as one of the top law firms for estate planning solicitors on the Three Best Rated website.
Request a call back below or call us onĀ 0114 2743 481Ā to book your appointment today.
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