Why “one-size-fits-all” trust solutions can go wrong, and how specialist solicitors can help
A recent BBC South West investigation has highlighted the devastating consequences that can arise when homeowners are advised to place their property into so-called “family protection trusts” without fully understanding the legal implications.
The article tells the story of 72-year-old Joyce Gifford, who discovered years later that she was no longer the legal owner of her own home after transferring it into a trust. The emotional toll, uncertainty, and ongoing legal battle she now faces is a sobering reminder that estate planning decisions should never be taken lightly.
The Promise and the Reality of Asset Protection Trusts
Trusts can be a legitimate and effective estate planning tool when used in the right circumstances and structured correctly. However, problems arise when they are marketed as a simple way to:
- Avoid care fees
- Protect property from local authorities
- Guarantee inheritance for children
As highlighted in the BBC article, local authorities may treat this type of arrangement as “deprivation of assets”, meaning the protection many people believe they are securing may not exist at all.
Even more concerning is when individuals are not clearly told that transferring a property into trust often means they are no longer the legal owner, but merely a beneficiary. This distinction can have profound legal, financial, and emotional consequences.
Why Independent Legal Advice Is Crucial
The issues raised in the BBC investigation reinforce the importance of receiving independent, transparent legal advice from a qualified solicitor before entering into any trust arrangement.
A properly advised client should always understand:
- Who will legally own the property
- Who controls decisions relating to the trust
- The tax implications
- The impact on care fee assessments
- Whether a trust is appropriate at all
Trusts are not “one-size-fits-all”. In many cases, there are safer and more appropriate alternatives for later life planning, asset protection, and inheritance planning.
How a Private Client Solicitor Can Help
At Bennett Oakley Solicitors, our role is to protect our clients, not sell products. We take the time to understand personal circumstances, family dynamics, and long-term goals before recommending any structure.
We regularly assist clients with:
- Reviewing existing trusts and identifying risks
- Advising on care fee planning and deprivation of assets rules
- Drafting Wills and Lasting Powers of Attorney
- Ethical and legally robust estate planning
- Resolving problems caused by mis-sold or unsuitable trusts
Most importantly, we ensure clients fully understand what they are signing and why.
A Final Word of Caution
If an arrangement sounds too good to be true, particularly promises about “guaranteed protection from care fees”, it usually is. The distress experienced by Mrs Gifford, as reported by the BBC, is something no homeowner should have to endure.
Careful planning, done properly, can bring peace of mind. Done incorrectly, it can do the opposite.
Need Advice on Trusts or Estate Planning?
If you have an existing trust you are unsure about, or you are considering estate planning options and want clear, honest advice, our Private Client team is here to help.
Contact Bennett Oakley Solicitors today to arrange a confidential consultation.
