Asset Protection Trusts – The Ongoing Scandal
In her latest blog, Head of Wills & Probate Jo Robinson, discusses the ongoing scandal of asset protection trusts….
It is heart-breaking to think of clients being taken advantage of by companies offering so-called asset protection trusts or asset management trusts but sadly this has been the case – and it is not just the elderly who have been targeted.
Many recently retired couples have been sold the dream at well-advertised seminars that they can protect their family home from the effects of long-term care fees and inheritance tax and have paid thousands to companies such as Universal Wealth Preservation, The Will Writing Company and Philips Trust Corporation to place their property into trust.
The devasting consequences of this are now coming to light with such companies going bust, being investigated by the police for fraud and important original documents being untraceable https://www.thisismoney.co.uk/money/beatthescammers/article-10893275/Trust-no-one-Cruel-conmen-claiming-trust-money-back.html.
In addition to promising the protection of assets, such companies often sold Wills and Lasting Powers of Attorney at inflated prices and named themselves as executors, trustees and attorneys, therefore giving themselves total control of the estate should the client die or lose mental capacity.
The shocking thing about this is that the inheritance planning industry is still not regulated. Anyone can set themselves up as an estate planner or Will writer – and the lack of regulation can be truly devastating, as we have seen from the above.
If you place your property into Trust then this is likely to be viewed of deprivation of capital by the Local Authorities and there are numerous tax consequences that need to be considered.
How We Can Help
If you have been affected by Universal Wealth Preservation or the Philips Trust Corporation Will Writing Company or require further advice, please contact me at j.robinson@timms-law.com or on 01332 364436.
Jo Robinson
December 2022