'Association of Lifetime Lawyers' Members Raise Concern About Asset Protection Trusts

If you are considering an Asset Protection Trust to safeguard your home or savings, the Association of Lifetime Lawyers (formerly known as Solicitors for the Elderly) urges you to be cautious after seeing a rise in misleading schemes that could cost you thousands of pounds - and leave you unprotected. Their current campaign calls for stronger regulation and more public awareness to protect families from the miss-selling of Asset Protection Trusts.

Many people across the UK are being sold expensive Asset Protection Trusts” (sometimes called Family Protection Trusts or Flexible Trusts) with promises that they will help avoid care home fees or reduce inheritance tax. Sadly, these promises are often false. Instead of protecting your assets, these schemes can lead to unexpected legal and tax problems and may even put your home at risk.

Who is Affected?

Older homeowners are being targeted, especially those who own their homes outright or have significant equity. Many have paid between £3,000 and £5,000 for complex legal documents they perhaps did not fully understand - documents that offered no real protection or benefit.

Why is This a Problem?

• Most of these schemes are sold by unregulated firms, meaning there is little oversight or protection for clients and the work undertaking may not be insured.
• In many cases, representatives from the firms selling the trusts will draft documents appointing their directors as trustees and sometimes unsuspecting consumers will sign these documents without fully understanding the cost implications of having professional trustees.
• Families have reported financial losses, stress, and even disputes with loved ones as a result.

How Can We Help?

Anna O'Mara, Partner at Sills & Betteridge and member of the Association of Lifetime Lawyers, says, “Families deserve honest, straightforward advice. There’s no one-size-fits-all answer to care or estate planning. If you are considering a trust, please speak to a properly qualified, regulated professional. If you are worried that you have already signed up for one of these schemes, don’t panic - there are ways we can help and we would be happy to review your circumstances”.

If you have concerns about something you are considering - or have already signed, get in touch with us for a confidential review on 0800 542 4245.