When used appropriately, trusts can be a great way to protect assets. However, too often they are sold by unregulated firms as the ultimate solution for everything, promising to protect the family home from care fees, minimise Tax, and prevent probate costs.
These schemes are expensive, risky (as they may not work), totally inappropriate for many, and difficult to get out of.
A recent article in ‘This is Money’ is well worth a read to appreciate real life examples of the extent and scope of the problems that these sales tactics have caused.
There was also a segment on BBC’s RIP off Britain, last week, interviewing families affected by these types of trusts, often marketed as products such as, ‘The Family Property Probate Trust’, ‘Family Probate Preservation Trust’, or ‘Lifetime Living Trusts’
Important, this is a specialist area of law. Anyone considering this type of planning must first speak directly to somebody who is fully qualified to give advice.
Please see our factsheet for further information.