Family Protection Trusts
As a law firm, we are finding an increase in clients coming to us who have taken out a Family Protection Trust.
They have been encouraged to transfer their property into the trust with the promise that they will be able to avoid care home fees and inheritance tax whilst remaining in the property. It of course does nothing of the sort and these individuals have no recourse as the companies set up to carry out this work are unregulated. These scams are often seen in local press and consumers will rarely receive legal advice before finding out that they have transferred their home. The trusts can only be dismantles by paying a professional solicitor and in one memorable situation, a hefty CGT bill.
It appears that a number of companies are touring local venues ‘persuading’ the dozens of members who are terrified of losing the family wealth to nursing home fees, that they have the magic solution! One set of clients at the current time are coming in to ‘undo’ the trust which was set up at a cost of several thousand pounds and may also be looking to take action against a particular company for recovery of the fee.
Thankfully some clients will approach us with a copy of the advert before proceeding and we are able to warn them off. We are now trying to get the message out to all clients and their families of the dangers of Family Protections Trusts from such companies are not worth the paper they are written on.